Washtenaw Takes Initial 80/20 Vote

At its Nov. 16, 2011 meeting, the Washtenaw County board of commissioners gave initial approval to a resolution stating that the county will comply with Section 4 of the state’s Public Act 152 of 2011, also known as the “80/20″ rule regarding health care costs. A final vote is expected at the board’s Dec. 7 meeting.

On Jan. 1, 2012, public employers like Washtenaw County will be prohibited from paying more than $5,500 for health benefits annually for a single employee, $11,000 for an employee plus spouse, or $15,000 for family coverage. However, the law allows a public employer, by a majority vote of its governing body, to choose another option: to pay not more than 80% of the total annual costs of all the medical benefits plans it contributes to or offers its employees and elected public officials.

The vote – if given final approval at the board’s Dec. 7 meeting – means that collective bargaining agreements entered into by the county on or after Sept. 15, 2011 must comply with the 80/20 rule. Five of the county’s 17 bargaining units, representing about 95 employees, do not yet have agreements with the county for 2012-2013. Those employees would be subject to the 80/20 rule, which will place more responsibility on employees for the cost of health care.

This brief was filed from the boardroom of the county administration building at 220 N. Main St. in Ann Arbor, where the board of commissioners holds its meetings. A more detailed report will follow: [link]