Public employers would follow set medical plan payment rules

Public employers would pay no more than set dollar amounts toward covered medical plan costs. The rule covers public employers that offer or contribute to medical plans for employees or elected public officials and that do not choose the alternative rule in section 4. The limits exclude plans based on the federal health care law and other federal or state-sponsored plans. The limits cover premiums or illustrative rates and employer payments for copayments, deductibles, and health-care savings accounts. A conflicting collective bargaining agreement or other contract delays the rule for covered employees until that agreement or contract is amended. The limits would apply to medical plan coverage years beginning on or after January 1, 2027. The state treasurer would adjust some limits each year after 2026 for later coverage years.

Public employers would pay at least 80% of covered medical plan costs. The rule covers medical plans offered or supported by public employers for employees and elected public officials. Covered costs include plan premiums or illustrative rates and employer payments for copayments, deductibles, and health-care savings accounts. Employee-paid out-of-pocket costs, beneficiary payments, federal or state-sponsored plans, and taxes are excluded from the cost calculation. A conflicting collective bargaining agreement or other contract delays the rule for covered employees until the contract expires, is extended, or is renewed. Costs under that contract would be left out of the employer's calculation. The 80% minimum would apply beginning January 1, 2027.

Public employers and other parties would be barred from adding contract terms that conflict with the section 4a payment rule. The restriction covers collective bargaining agreements and other contracts executed on or after January 1, 2027. The restriction is subject to the contract exceptions in sections 3a(3) and 4a(2). The restriction would apply to contracts executed on or after January 1, 2027.