2022 Hard Cap Limits for Medical Benefit Plans

In a March 18, 2021 memorandum, 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 starting or renewing on or after January 1, 2022.

The cap amounts were increased by 3.7% for 2022. 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, 2022, a public employer may con­tribute up to the following amounts toward a medical benefit plan:

  • $7,304.51 multiplied by the number of employees with single-person coverage;
  • $15,276.01 multiplied by the number of em­ployees with individual and spouse coverage or individual-plus-1-nonspouse-dependent cover­age; and
  • $19,921.45 multiplied by the number of employees with family coverage.