Title
PA 152 Election for 2021 Plan Year
Body
Agenda of: September 23, 2020
Item No.: 2020-320
Amount: N/A
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: September 16, 2020
RE: PA 152 Election for 2021 Plan Year
MOTION
Upon recommendation of William M. Wolfson, Chief Administrative and Compliance Officer, Terri Conerway, Chief Organizational Development Officer, and Randal Brown, General Counsel, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), elects to comply with the requirements of Michigan PA 152 by adopting the 80%/20% option for the medical benefit plan coverage year commencing January 1, 2021 and running through December 31, 2021; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
"The Publicly Funded Health Insurance Contribution Act," commonly known as PA 152, MCL 15.561, et seq., (PA 152) applies to the costs related to GLWA's provision of employee health care benefits. PA 152 provides the following three options for complying with its requirements:
1) Section 3 of the Act, MCL 15.563, provides for a Hard Cap option, which limits a public employer's total annual health care costs for employees based on coverage levels, as defined in the Act.
2) Section 4 of the Act, MCL 15.564, provides for an 80%/20% option, which limits a public employer's share of total annual health care costs to not more than 80% of those costs. This option requires ...
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