LANSING, Mich. (Michigan News Source) – Public sector unions and municipalities that employ those union workers are at odds over who should bear the burden of increasing health care insurance.
In 2011, Gov. Rick Snyder signed a law that limited how much municipalities and school districts could pay for health insurance for their employees. The law limited paying more than 80% of health care costs. Before that law, many school districts paid the entire costs of health insurance for its employees.
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House Bill 6058 and Senate Bills 1129 and 1130 would allow the employers to cover more of the growing health care costs by repealing the 80% cap. The bills are being considered during the lame duck legislative session.
A dozen unions have come out in support of the legislation, including the Michigan Education Association, AFSCME, Michigan AFL-CIO and SEIU Michigan. Those opposed include the Michigan Townships Association, the Southeast Michigan Council of Governments and the Small Business Association of Michigan.
Health care costs are growing for the public-sector employers.
Grand Rapids Public Schools stated earlier this year that it had a “substantial” increase in health care costs of 12% to 14% that will take effect in January. Traverse City’s public school district costs have increased from $9.95 million in 2014 to $14.26 million in 2023, a 43% increase over the last nine years.
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