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Coldwater board votes to opt out of PA 152 for employee health insurance
Summary
Citing projected premium increases, the board voted to opt out of Public Act 152 and approved a resolution to forward to city council, retaining a locally administered hard cap approach and flexibility for mid-year life changes affecting coverage.
The Coldwater Board of Public Utilities voted Oct. 1 to opt out of Public Act 152 — the Michigan law that sets options for governmental employers' health-insurance sharing — and to forward a resolution to city council for adoption.
The utility director explained the three statutory options under PA 152 (an 80/20 split, a hard cap, or opt out) and said this year’s insurance projections showed a hard-cap increase of about 2.9% while health-insurance premiums could rise about 9.1%. "We have opted out for quite a few years," the director said, explaining that opt-out status gives the city flexibility to adjust for life changes during the year that might otherwise cause compliance problems.
A board member moved to approve the resolution (identified in the transcript as resolution number 25 80 98) and the motion carried. Staff said they will continue discussions with the insurance carrier and work on benefit options for employees.
The board’s action forwards the resolution to city council for final adoption and preserves flexibility for the utility in administering employee health benefits.
