Senate passes bill to increase public employer health care contributions

This week, the Senate passed a bill that would require public employers to pay an increased amount for employee health care under changes to the Publicly Funded Health Insurance Contribution Act (PA 152 of 2011). Opposed by MTA, Senate Bill 1136 would increase the amount public employers pay toward their employees’ medical benefits. The bill, identical to legislation passed in 2024 and vetoed by the governor in July, would increase current public employer contribution hard caps and change the 80% contribution cap to an 80% contribution floor on medical benefit plans. The bill now moves to the House for consideration.