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Home My WebLink AboutReports - 2023.10.17 - 40629 AGENDA ITEM: Exempting Oakland County Government From Public Act 152 of 2011 for Calendar Year 2024 DEPARTMENT: Human Resources MEETING: Board of Commissioners DATE: Friday, October 27, 2023 7:55 PM - Click to View Agenda ITEM SUMMARY SHEET COMMITTEE REPORT TO BOARD Resolution #2023-3390 Motion to exempt Oakland County from the requirements of Public Act 152 of 2011 for calendar year 2024, pursuant to the authority granted to a county under Section 8 of the Public Act. ITEM CATEGORY SPONSORED BY Resolution Gary McGillivray INTRODUCTION AND BACKGROUND State of Michigan Public Act 152 of 2011, the "Publicly Funded Health Insurance Contribution Act," was enacted by the State of Michigan and given immediate effect on September 27, 2011.The Act sets forth various options that public employers may follow when providing healthcare benefits to their employees. Public Act 152 of 2011 requires public employers to observe a state-mandated "hard cap" on the cost of employee medical and prescription benefits, or limit the employer cost share to 80%, with an opt-out provision for public employers. Oakland County has exercised this opt-out right every year since PA 152 went into effect in 2012. The Human Resources Department is again proposing that the Oakland County Board of Commissioners continue the opt-out for 2024. POLICY ANALYSIS Approval of this exemption preserves flexibility with compensation packages to meet county needs and objectives. Additionally, it provides cost-savings for county employees in their health benefits by allowing the county to offer plans with lower employee contributions. Legislation: PA 152 of 2011 (MCL 15.568 Sec 8) allows an exemption to this act with a 2/3 vote of the governing body each year. BUDGET AMENDMENT REQUIRED: No Committee members can contact Michael Andrews, Policy and Fiscal Analysis Supervisor at 248.425.5572 or andrewsmb@oakgov.com, or the department contact persons listed for additional information. CONTACT Heather Van Poucker ITEM REVIEW TRACKING Aaron Snover, Board of Commissioners Created/Initiated - 10/17/2023 AGENDA DEADLINE: 10/27/2023 7:55 PM ATTACHMENTS 1. BOC Memo PA 152 2024 2. 2024 MI Publicly Funded Health Contribution Act_Exhibit_091323 COMMITTEE TRACKING 2023-10-10 Legislative Affairs & Government Operations - Recommend to Board 2023-10-17 Full Board Motioned by: Commissioner Angela Powell Seconded by: Commissioner Robert Hoffman Yes: David Woodward, Michael Spisz, Karen Joliat, Kristen Nelson, Christine Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia Gershenson, William Miller III, Yolanda Smith Charles, Charles Cavell, Brendan Johnson, Ajay Raman (15) No: None (0) Abstain: None (0) Absent: Gary McGillivray, Penny Luebs, Michael Gingell, Janet Jackson (4) Passed OAKLAND COUNTY EXECUTIVE DAVID COULTER Sunil Asija, Director Human Resources 2100 Pontiac Lake Road | County Executive Building 41W | Waterford, MI 48328 | OakGov.com TO: David T. Woodward, Chairman of the Board of Commissioners Gary McGillivray, Chairperson of the Legislative Affairs and Government Operations Committee FROM: Sunil Asija, Director of Human Resources Heather Van Poucker, Human Resources Manager-Benefits & Compensation RE: State of Michigan Public Act 152 for 2024 DATE: September 26, 2023 Attached for your consideration is a resolution to opt out of Public Act 152 (PA 152) for calendar year 2024 along with supporting detail and documentation . PA 152 requires public employers to observe a state-mandated “hard cap” on the cost of employee medical & prescription benefits or limit the employer cost share to 80%. PA 152 also provides an opt- out provision for public employers. Oakland County has exercised its legal right to exempt itself from th is act each year since the act went into effect January 1, 2012. The 2024 PA 152 hard-cap amounts increased by 4.1% over 2023 hard cap levels. The table below shows how Oakland County contributions compare to the hard -caps. Coverage 2024 State Hard-Cap 2024 County Contributions PPO1 PPO2 HMO HDHP (includes County Contribution to HSA) Traditional Single 7,702.85 $8,286.12 $7,579.60 $7,779.68 $7,724.45 $7,676.84 Two-Person $16,109.06 $18,775.68 $17,658.80 $19,123.56 $17,045.66 $17,954.28 Family $21,007.83 $26,018.20 $24,414.08 $23,936.92 $22,373.22 $25,255.40 Modeling Oakland County enrollment figures and illustrative rates, total employer contribution is $64,614,357, which is 18.9% above the hard cap of $54,383,872. In 2023 Oakland County was 19.8% above the hard-cap. Employer cost share ranges from 84.9% to 97.5%, above the PA 152 limit of 80%. PPO1 Medical & Prescription Drug Single 2-Person Family SUM 2024 County Annual Contribution $8,286.12 $18,775.68 $26,018.20 n/a Employee Enrollment (as of April 2023)722 641 1,440 2803 County Total Annual Contribution by Enrollment $5,982,579 $12,035,211 $37,466,208 $55,483,998 % MI Hard Cap Allowance by Enrollment $5,561,458 $10,325,907 $30,251,275 $46,138,640 Difference Difference $421,121 $1,709,303 $7,214,933 $9,345,357 20.3% PPO2 Medical & Prescription Drug Single 2-Person Family SUM 2024 County Annual Contribution $7,579.60 $17,658.80 $24,414.08 n/a Employee Enrollment (as of April 2023)73 56 121 250 County Total Annual Contribution by Enrollment $553,311 $988,893 $2,954,104 $4,496,307 % MI Hard Cap Allowance by Enrollment $562,308 $902,107 $2,541,947 $4,006,363 Difference Difference ($8,997) $86,785 $412,156 $489,944 12.2% PPO3 Medical & Prescription Drug Single 2-Person Family SUM 2024 County Annual Contribution $7,541.00 $16,989.60 $23,303.20 n/a Employee Enrollment (as of April 2023)0 0 0 0 County Total Annual Contribution by Enrollment $0 $0 $0 $0 % MI Hard Cap Allowance by Enrollment $0 $0 $0 $0 Difference Difference $0 $0 $0 $0 N/A Traditional Medical & Prescription Drug Single 2-Person Family SUM 2024 County Annual Contribution $7,676.84 $17,954.28 $25,255.40 n/a Employee Enrollment (as of April 2023)20 12 9 41 County Total Annual Contribution by Enrollment $153,537 $215,451 $227,299 $596,287 % MI Hard Cap Allowance by Enrollment $154,057 $193,309 $189,070 $536,436 Difference Difference ($520) $22,143 $38,228 $59,851 11.2% BCN HMO Medical & Prescription Drug Single 2-Person Family SUM 2024 County Annual Contribution $7,779.68 $19,123.56 $23,936.92 n/a Employee Enrollment (as of April 2023)96 44 83 223 County Total Annual Contribution by Enrollment $746,849 $841,437 $1,986,764 $3,575,050 % MI Hard Cap Allowance by Enrollment $739,474 $708,799 $1,743,650 $3,191,922 Difference Difference $7,376 $132,638 $243,114 $383,128 12.0% HDHP Medical & Prescription Drug Single 2-Person Family SUM 2024 County Annual Contribution (to include premium & HSA contribution)$7,724.45 $17,045.66 $22,373.22 n/a Employee Enrollment (as of April 2023)38 7 5 50 County Total Annual Contribution by Enrollment $293,529 $119,320 $111,866 $524,715 % MI Hard Cap Allowance by Enrollment $292,708 $112,763 $105,039 $510,511 Difference Difference $821 $6,556 $6,827 $14,204 2.8% Aggregate Medical & Prescription Drug Single 2-Person Family Aggregate SUM County Total Annual Contribution by Enrollment $7,729,805 $14,200,311 $42,746,241 $64,676,357 % MI Hard Cap Allowance by Enrollment $7,310,005 $12,242,886 $34,830,982 $54,383,872 Difference Difference $419,800 $1,957,426 $7,915,259 $10,292,484 18.9% In aggregate, Oakland County contributions are 18.9% above the hard cap limit. - $16,109.06 times the # of employees with two-person coverage - $21,007.83 times the # of employees with family coverage 2024 MI Publicly Funded Health Contribution Act (PA 152) For the period 1/1/2024 - 12/31/2024 For medical benefit plan coverage year beginning on or after January 1, 2024, sets a limit on the amount that a public employer may contribute to a medical plan to the SUM of: - $7,702.85 times the # of employees with single coverage Source: www.michigan.gov/treasury/local/share/evip/hica/publicly-funded-health-insurance-contribution-act Exhibit Revision Date: Sept. 12, 2023