2020 Hard Cap Limits for Medical Benefit Plans


May 6th, 2019

In a memorandum dated March 25, 2019, the Michigan Department of Treasury notified public em­ployers of the “hard cap” contribution limits under the Publicly Funded Health Insurance Contribution Act for medical benefit plans renewing on or after January 1, 2020.

The 2019 cap amounts were increased by 2.0%. The adjustment is based on the change in the medical care component of the consumer price index for the previous 12-month period.

For medical benefit plan coverage years beginning on or after January 1, 2020, a public employer may con­tribute up to the following amounts toward a medical benefit plan:

  • $6,818.87 multiplied by the number of employees with single-person coverage;
  • $14,260.37 multiplied by the number of employees with individual-and-spouse cover­age or individual-plus-1-nonspouse-depend­ent coverage; and
  • $18,596.96 multiplied by the number of employees with family coverage.