2011 House Bill 4572

Cap government and school employee health benefit costs

Introduced in the House

April 21, 2011

Introduced by Rep. Joel Johnson (R-97)

To prohibit the state, local governments and public schools from providing employee health insurance benefits whose premiums cost more that $5,000 for a single person, $10,000 for a couple and $13,000 for a family plan, indexed to the consumer price index. The cap would not become effective until existing government employee union contracts requiring more costly coverage have expired.

Referred to the Committee on Oversight, Reform, and Ethics

June 22, 2011

Reported without amendment

With the recommendation that the substitute (H-7) be adopted and that the bill then pass.

June 23, 2011

Substitute offered

To replace the previous version of the bill with one that has higher caps, looser cost indexing, and other detail changes.

The substitute passed by voice vote

Amendment offered by Rep. David Nathan (D-11)

To exclude from the cap government commissions or authorities whose money comes from a source other than the state or a local government.

The amendment failed by voice vote

Amendment offered by Rep. Tom McMillin (R-45)

To use reductions in the government reform "incentive payments" authorized by the 2012 state budget as the sanction for local governments that break the cap, rather than statutory revenue sharing payment reductions.

The amendment passed by voice vote

Amendment offered by Rep. Holly Hughes (R-91)

To increase the maximum benefit cost caps for singles and couples.

The amendment passed by voice vote

Amendment offered by Rep. Lisa Brown (D-39)

To allow government employers to vote to opt out of the cap, and eliminate the sanctions for ones who violate it.

The amendment failed by voice vote

Passed in the House 58 to 51 (details)

To prohibit the state, local governments, public schools, colleges and universities from providing employee health insurance benefits whose premiums cost more that $5,500 for a single person, $11,000 for a couple and $15,000 for a family plan, indexed to the medical price index. The cap would not become effective until existing government employee union contracts requiring more costly coverage have expired. Government employers who break the cap would get less state money.

Received in the Senate

June 28, 2011

Referred to the Committee on Reforms, Restructuring, and Reinventing