HB 4574 Hard Cap talking points

HB 4574 – Hard Cap Talking Points

A hard cap is anti-family because it will make coverage unaffordable

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It would shift the responsibility for paying nearly all future health care cost increases to Michigan public employees and their families.

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Thousands of public employees and their families would end up paying thousands of dollars more out of their pockets to cover future increases.

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And a public employee making $60,000 a year will pay the same for their healthcare as someone making $15,000 per year. This could cause many families to lose their house or even face bankruptcy.

A hard cap is a one-size-fits-all approach that does not work in Michigan.

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The legislation ignores the fact that health care costs vary considerably by region in Michigan. The cost of healthcare in the metro Detroit area is different from the Grand Rapids area, which is different from the Marquette area.

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Health care costs also vary by demographics factors including age and gender. Costs will be lower for a group of employees who are mostly in the age range of 20 to 30 than for a group with relatively older workers.Health care costs for women are much higher than for men, so the hard cap hurts Michigan women most. Per capita health spending is 32% higher for females than for males

The new state budget already addresses the issue. Let’s give it time to work.

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The budget addressed these issues for school employees and municipalities. Before we move forward with something that will hurt Michigan families and women and have other unintended consequences, let’s give that time to work.