The Ann Arbor Chronicle » 80/20 rule http://annarborchronicle.com it's like being there Wed, 26 Nov 2014 18:59:03 +0000 en-US hourly 1 http://wordpress.org/?v=3.5.2 AATA Accepts Empty Penalty on Health Care http://annarborchronicle.com/2012/08/16/aata-accepts-empty-penalty-on-health-care/?utm_source=rss&utm_medium=rss&utm_campaign=aata-accepts-empty-penalty-on-health-care http://annarborchronicle.com/2012/08/16/aata-accepts-empty-penalty-on-health-care/#comments Thu, 16 Aug 2012 23:13:36 +0000 Chronicle Staff http://annarborchronicle.com/?p=95022 For its unionized employees, the Ann Arbor Transportation Authority has decided not meet the conditions of Michigan’s Act 152 – which limits the amount that public employers can contribute to their employee health care. Instead, the AATA will accept the penalty specified in Section 9 of Act 152, which actually has no practical effect on the AATA. This will allow the AATA to comply with its obligations under federal law with respect to collective bargaining rights.

Act 152 limits the amount that a public employer like the AATA can make to its employees’ medical benefits plans – $5,500 for single-person coverage, $11,000 for two-person coverage, and $15,000 for family coverage. And the law provides another option, where the employer limits its contribution to 80% of the medical benefit.

However, in a vote taken by AATA board members at their Aug. 16 meeting, they decided not to pursue either compliance option, and instead to accept the penalty specified in Section 9 of the law, which involves funds to which the AATA is not entitled in any case: “If a public employer fails to comply with this act, the public employer shall permit the state treasurer to reduce by 10% each economic vitality incentive program payment received under 2011 PA 63 and the department of education shall assess the public employer a penalty equal to 10% of each payment of any funds for which the public employer qualifies under the state school aid act of 1979, 1979 PA 94, MCL 388.1601 to 388.1772, during the period that the public employer fails to comply with this act.” [.pdf of full text of Act 152]

The rationale for the vote was this: In order for the AATA to comply with Title 49 of United States Code 5333, as an agency that receives federal assistance, unionized health care benefits must be subject to collective bargaining – not the state’s mandated fixed-dollar or percentage caps. AATA bus drivers are members of the Transport Workers Union Local 171.

The AATA had already begun to grapple with this issue, when it voted at its June 21, 2012 meeting to comply with Michigan’s Act 152 for its non-union management staff. And that was followed with a discussion of possibly rescinding that vote at the board’s July 16, 2012 meeting. Although the possibility of scheduling a special meeting was discussed – to deal with non-union employee health care – no meeting was scheduled.

This brief was filed from the downtown location of the Ann Arbor District Library at 343 S. Fifth, where the AATA board holds its meetings. A more detailed report will follow: [link]

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County Enacts 80/20 Health Cost Rule http://annarborchronicle.com/2011/12/08/county-enacts-8020-health-cost-rule/?utm_source=rss&utm_medium=rss&utm_campaign=county-enacts-8020-health-cost-rule http://annarborchronicle.com/2011/12/08/county-enacts-8020-health-cost-rule/#comments Thu, 08 Dec 2011 05:14:25 +0000 Chronicle Staff http://annarborchronicle.com/?p=77295 At its Dec. 7, 2011 meeting, the Washtenaw County board of commissioners gave final 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. Initial approval was given at the board’s Nov. 16 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.

When the board initially passed this resolution on Nov. 16, it stated 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.

However, on Wednesday the resolution was amended – on a 9-2 vote – to change the Sept. 15 date to Jan. 1, 2012. Voting against the amendment were Alicia Ping (R-District 3) and Dan Smith (R-District 2). Both commissioners indicated that it wasn’t fair to other bargaining units who had met the Sept. 15 deadline. County staff said the change simply gives the administration more flexibility in trying to reach agreements with the unions before the end of this year.

The units that haven’t accepted concessions are those representing the prosecuting attorneys, the prosecuting attorney supervisors, attorneys in the public defenders office, supervisors of attorneys in the public defenders office, and AFSCME Local 3052 representing general supervisors. During public commentary at the end of Wednesday’s meeting, county prosecuting attorney Brian Mackie spoke to the board, saying that it wasn’t appropriate for some commissioners to imply that the five remaining bargaining units are negotiating in bad faith. He said there is nothing wrong with the way that they’re negotiating, and noted that two years ago, the prosecuting attorneys had been the first of the county’s bargaining units to agree to pay for a portion of their medical insurance.

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]

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Washtenaw Takes Initial 80/20 Vote http://annarborchronicle.com/2011/11/16/washtenaw-takes-initial-8020-vote/?utm_source=rss&utm_medium=rss&utm_campaign=washtenaw-takes-initial-8020-vote http://annarborchronicle.com/2011/11/16/washtenaw-takes-initial-8020-vote/#comments Thu, 17 Nov 2011 03:56:59 +0000 Chronicle Staff http://annarborchronicle.com/?p=76155 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]

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