Public employees and officers: compensation and benefits; public employer contribution to medical benefit plan; modify. Amends title & secs. 3, 4 & 5 of 2011 PA 152 (MCL 15.563 et seq.) & adds secs. 3a & 4a.

Michigan Senate Bill 1136 amends state law to cap the amount public employers can spend on employee health insurance, introducing new fixed dollar limits for single, couple, and family coverage starting in 2027. The bill also reverses a previous provision that allowed employers to pay no more than 80% of total medical costs, instead mandating that they pay at least 80% of those expenses beginning in the same year. These new financial caps are adjusted annually based on changes in Michigan health insurance rates or a minimum 3% increase, whichever is higher. Existing collective bargaining agreements that conflict with these limits are exempt until their current terms expire or are renegotiated.