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2018 Hard Cap Limits for Medical Benefit Plans

In a memorandum dated September 17, 2018, the Michigan Department of Treasury notified all 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, 2019. The 2018 cap amounts were increased by 1.9%. 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, 2019, a public employer may contribute up to the following amounts toward a medical benefit plan:

  • $6,685.17 multiplied by the number of employees with single-person coverage;
  • $13,980.75 multiplied by the number of employees with individual-and-spouse coverage or individual-plus-1-nonspouse-dependent coverage; and
  • $18,232.31 multiplied by the number of employees with family coverage.