Gov. Rick Snyder has signed legislation that will force many public employees to pay more for their health insurance by limiting the amount public employers may pay for government employee medical benefits.
“These changes result in a fair and equitable approach that brings public employee benefits more in line with the private sector,” Snyder stated in a written release. “Getting these currently unsustainable costs under control now helps ensure Michigan’s long-term future and allows us to all move forward together.”
According to the Governor’s office, “beginning on Jan. 1, 2012, a public employer such as a city, county or township will be limited from paying more than $5,500 for health benefits annually for a single employee, $11,000 for an employee plus spouse or $15,000 for family coverage.”
Under the new law, a public employer could split the cost of medical coverage with its employees, but can only pay up to 80% of the annual cost.
Local governments can become exempt from this law if they receive two-thirds vote from their own governing body.
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