Brothers & Sisters,
As many of you already know, SB7 passed yesterday. I have taken the liberty of forwarding you a copy of the law, so all of you will have a copy when the numerous requests for information start to pour in. I have examined the bill, and some interesting sections are mentioned below:
- Top of page 3, lines 1 & 2. Does not apply to retired folks.
- Page 3 lines 20-23, speak of the “cap”
- Page 3 line 25, speaks of effective date of law (01-01-2012)
- Page 4 lines 8-11, speaks of the “opt out” provision
- Page 4 lines 14-18, speaks to the 80% cap for the employer.
- Page 5 line 17, speaks to contracts executed AFTER 09-15-2011, SHALL NOT include terms inconsistent with the act.
In summation, this is the worst case scenario come true; 80-20 and a cap. This in no way impacts the MSP or the DOC which directly impacts the State of Michigan’s budget. Here is some fuzzy math for you based upon my situation in Monroe:
I currently “buy up” to the BCBS PPO1 plan at a 10% contribution rate of $83.05 per paycheck. This law will double that to $166.10 a paycheck, which translates $332.20 a month.
The PPO plan based upon these figures is approx. $19930.00 a year. The cap of $15000.00 for a family plan results is an amount of $4930.00 a year over the cap. If you add the CAP overage divided bi-weekly, that represents an additional $128.80, on top of the premium sharing of $332.20 a month, for a grand total of $461.00.
Again, these figures are fuzzy, you can do your own calculations; but this is meant to spell out the doom and gloom that has been perpetrated unto you.
If you would like further information, or would like to talk to us regarding this issue, please contact us here.
Also available is the SB7 Fiscal Analysis:
Photo courtesy of Kapungo
