New Bill Could Help Curb Municipal Retiree Health Care Costs

A new plan up for discussion in the state house would help curb municipal retirees’ health care costs.

A hearing to explore the subject is being held Thursday.

The bill would prohibit municipalities that aren’t funding at least 80 percent of their retiree health liabilities from covering more than 80 percent of the annual cost of retirement health benefits.

Newly hired state or city employees would only qualify for retirement health coverage of an employer’s contribution to a tax-deferred account.

Governor Snyder has made these costs a priority but it may be difficult to move forward with during the condensed "lame-duck" period.