Public Act 152 Compliance

The state of Michigan’s Public Act 152, otherwise known as the Publicly Funded Health Insurance Contribution Act, was enacted in 2011 to provide for certain limitations on the amount that a public employer may contribute toward the annual cost of their employees’ medical benefit plans.

The Act provides public employers, such as cities, townships and villages, with two options for covering their employees’ health care. The first are “hard caps” outlined in Section 3 of the Act, which are based on an employee’s marital and family status. This option dictates that the employee cover the difference if the insurance exceeds the hard cap.

The second option is an 80/20 split that allows public employers to opt out of the hard caps and instead annually elect to an 80% contribution cap on the cost for health care benefits.

Ensuring Compliance with Public Act 152

As you may well know, failure to comply with the requirements set forth by Public Act 152 results in severe penalties for the employer. With more than 50 years of experience in the Michigan public entity sector, Burnham & Flower understands the challenges the Act poses for public employers and can provide analysis for both the hard caps and the 80/20 method.

For more information, contact Amber Howes at or 800.748.0554.

Where we are

Burnham & Flower Insurance Group
Phone: 269.381.1173
Toll Free: 800.748.0554

315 South Kalamazoo Mall
Kalamazoo, MI 49007

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6500 Taylor Rd.
Blacklick, OH 43004

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