Macomb Township unanimously opts out of state hard-cap health insurance law, adopts local plan to shield employees from premium spike

The Macomb Township Board of Trustees voted Wednesday to opt out of the statelevel hard-cap cost-sharing law and to adopt a local health insurance plan that maintains township payment of premiums while reducing township contributions to employee Health Savings Accounts.

Supervisor Viviano said the action was intended to balance the townshiprole as an employer with fiscal stewardship. "Under that proposal, we are suggesting that we opt out this year, that the township will continue to pay 100% of the premiums as we have done in past years. But that the deductible amount ... be reduced to 25 percent of the deductible, instead of the 48% that we were paying before," Viviano said during the meeting.

Why it matters: Trustees said recent insurance-market increases would have forced abrupt costs onto employees under the hard-cap or an 80/20 model. The board concluded the locally tailored approach would spread the fiscal impact more gradually while still addressing rising premiums.

What the board approved: The motion, offered by Trustee Lucido and supported by Clerk Posey, amended the original motion to opt out of PA 152 and to adopt the health-care plan presented in the board materials. Clerk Posey called the roll; Trustees Lucido, Cusimano, Papa, Treasurer Gillette, Clerk Posey and Supervisor Viviano all voted yes. The resolution was adopted.

Key details discussed: Board materials and speakers cited recent premium increases of roughly 34.2% in a prior year and about 26.9% in the most recent renewal; the combined effect over two years was described by staff as an almost 60% increase. The township previously contributed about 48% of an employee deductible to HSAs; under the adopted plan that township contribution will be reduced to 25% of the deductible for the coming plan year while the township will continue to pay 100% of premiums.

Board context and next steps: Trustees described the move as a transitional choice intended to avoid imposing sudden out-of-pocket costs on employees while acknowledging that future budget pressures may require additional changes. Staff confirmed the motion language to opt out of PA 152 and implement the local plan, and the board directed staff to implement the adopted changes as presented.

Meeting record: The discussion began in the meeting packet materials and public hearing sequence and ran through a formal roll-call vote adopting the opt-out resolution.