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Council renews opt‑out for Public Act 152, approves Blue Cross Blue Shield benefit contracts for 2026
Summary
Council formally adopted the opt‑out option under Michigan PA 152 (requiring two‑thirds approval) and approved one‑year BCBS/BCN benefit contracts for 2026 after staff explained premium increases and renewal options.
The City Council Oct. 21 voted to comply with Michigan Public Act 152 for 2026 by adopting the opt‑out option (requiring a two‑thirds vote) and approved one‑year benefit contracts with Blue Cross Blue Shield (BCBS) and Blue Care Network (BCN) for the 2026 plan year.
Finance and benefits staff explained the three PA 152 choices (hard cap, 80/20 share, or opt‑out with two‑thirds approval) and recommended opt‑out to preserve competitive benefits and recruitment. Staff told council that the 2026 renewal shows a projected premium jump (driven by a small number of catastrophic claims) and that continuing the opt‑out arrangement will limit employee out‑of‑pocket increases compared with the hard‑cap alternative.
Council also approved a one‑year contract to continue BCBS community PPO plans (self‑funded wrap through EHIM), the Simply Blue PPO (80% plan) and BCN HMO HSA options for eligible employees, retirees and Medicare participants. Administration said existing budget lines and recent unbudgeted revenue (e.g., property sale receipts) will cover the revised cost projection for 2026.
Both the opt‑out resolution and the BCBS contract were approved by roll call.
