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Chelsea council adopts 80/20 health insurance cost-sharing plan under Michigan P.A. 152
Summary
Council adopted a compliance plan under Michigan P.A. 152 by implementing an 80/20 employer-employee cost-sharing model for employee health insurance to simplify administration across employee groups; the resolution passed unanimously.
Chelsea’s City Council adopted an 80/20 employer-employee health insurance cost-sharing resolution on May 1 under Michigan Publicly Funded Health Insurance Contribution Act (P.A. 152 of 2011).
Finance Director King explained that public employers must comply annually and may choose among several options: apply a hard cap, adopt an 80/20 model, elect noncompliance, or opt out in the first year. City staff recommended the 80/20 model because it is easier to administer consistently across non-union and union employee groups, even though the City’s current coverage falls under the hard caps.
Peter Feeney moved adoption of the 80/20 cost-sharing resolution; Eric Keaton seconded and the council approved the resolution with all members voting aye.
