HomeMy WebLinkAboutResolutions - 2012.06.07 - 20262June 7, 2012
MISCELLANEOUS RESOLUTION #12155
BY: Human Resources Committee, John Scott, Chairperson
IN RE: HUMAN RESOURCES DEPARTMENT- PA152 EXEMPTION FOR CALENDAR YEAR 2013
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS PA 152 of 2011, the "Publically Funded Health Insurance Contribution Act" was
enacted by the State of Michigan and given immediate effect on September 27, 2011; and
WHEREAS PA 152 sets forth various options that public employers may follow when providing
healthcare benefits to their eligible employees; and
WHEREAS acting pursuant to specific provisions of Act 152, Oakland County government
exercised its legal right to exempt itself from the Act's cap and/or formula limitations for calendar year
2012; and
WHEREAS the exemption was adopted in order to avoid costs of litigation, avoid the expense of
conducting delayed "open enrollment" selection processes and to secure reasonable time to prudently
employ the County's recognized Triennial Budget Process and to allow the County to continue making
changes over time that yield significant reductions in health care costs in a manner that is fair to both
taxpayers and employees; and
WHEREAS the County's exemption for calendar year 2012 was equitable to both the taxpayers
and employees for a variety of reasons including the fact that the self-insured County, even with its
election to formally exempt itself for calendar year 2012, will likely stay within the cap formula target of Act
152 for 2012; and
WHEREAS the County Executive recommends that Oakland County again formally exercise its
legal right to exempt itself from the Act's limitations for calendar year 2013 for the same reasons as
existed in 2012 and for the additional reason that the Act fails to provide a mechanism that would allow
Oakland County officials to exercise their required due diligence by adopting a fiscal year 2013 budget
only after knowing what the cap target allowed by law will be; and
WHEREAS the structure of Act 152 makes knowledgeable acceptance of its cap formula before
FY 2013 budget adoption effectively impossible for the reason that the Michigan Treasurer is not required
under the Act to adjust the maximum payment permitted under Section 3 of Act 152 for each coverage
category for medical benefit plan coverage years until October 1 of each year after 2011; and
WHEREAS October 1 is the date each year the County's fiscal year budget becomes effective:
and
WHEREAS Act 152's October 1 date to adjust the maximum payment permitted is simply too late
under the budget process mandated by Section 8 of 1973 P.A. 139, MCL 45.558(1) (d), which requires
the County Executive to submit a proposed budget to the Board of Commissioners "...not less than 90
days before the next succeeding fiscal year", (i.e., by July 3, 2012), a date 90 days before the October 1 s'
commencement of the next succeeding fiscal year; and
WHEREAS a calendar year 2013 exemption would be equitable to both the taxpayers and
employees given that the self-insured County. even with an election to formally exempt calendar year
2013, may well meet the cap formula target established under Act 152, despite the fact that the cap
amount will not be required to be established by the State Treasurer until after the County budget is
adopted; and
WHEREAS Oakland County has a long history of proactive budget practices that have resulted in
budgets that are balanced and fiscally sound and even with an exemption for 2013, as demonstrated by
decades of actual performance, the County will continue making changes over time designed to yield
significant reductions in health care costs in a manner that is fair to both taxpayers and employees; and
WHEREAS the adopted Oakland County Triennial Budget for Fiscal Years 2012 - 2014 is
balanced, maintains responsible general fund equity balances, and funds employee current medical
benefit plans within existing revenues; and
WHEREAS along with opting out as allowed under PA152 for 2013, the County Executive will be
proposing to make cost-controlling changes to employee healthcare plans for calendar year 2013; and
Human Resources Committee Vote:
Motion carried unanimously on a roll call vote
WHEREAS the County Executive will be recommending that current prescription drug co-pay
levels will be increased from $513101$25 to $5/$20/$40 for employees and retirees effective January 1,
2013; andWHEREAS the County Executive will be recommending a $100 ER (emergency room) co-pay
for non-emergency services be implemented for health plans for employees and retirees effective
January 1, 2013; and
WHEREAS the County Executive will recommend reassessment for calendar year 2014 when
more information about the Federal healthcare reform, about state healthcare exchange plans and about
the outcomes of any litigation regarding PA152 are known and when the actual fiscal impact of any
proposed FY2013 health care changes can be evaluated.
NOW THEREFORE BE IT RESOLVED that acting pursuant to the authority granted a county
under Section 8 of Public Act 152 of 2011, the Oakland County Board of Commissioners hereby exempts
Oakland County Government from the requirements of PA 152 for calendar year 2013.
Chairperson ; on behalf of the Human Resources Committee, I move the adoption of the foregoing
resolution.
HUMAN RESOURCES .COMMITTEE
Resolution #12155 June 7, 2012
Moved by Nuccio supported by Zack the resolutions (with fiscal notes attached) on the Consent Agenda
be adopted (with accompanying reports being accepted).
Discussion followed.
AYES: Covey, Crawford, Dwyer, Gershenson, Gingell, Gosselin, Hatchett, Hoffman, Jackson,
Long, Matis, McGillivray, Middleton, Nash, Nuccio, Potts, Quarles, River, Runestad, Scott, Taub,
Weipert, Woodward, Zack, Bosnic. (25)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the Consent
Agenda be adopted (with accompanying reports being accepted.)
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Bill Bullard Jr., Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true
and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on June 7,
2012, with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at
Pontiac, Michigan this 7th day of June, 2012.
Kak
Bill Bullard Jr., Oakland County