Michigan Legislature Caps Public Health Insurance Plans

Breaking from its summer recess, the Michigan legislature passed several laws including a measure that adopts new caps on spending for public employee health insurance, according to a Detroit Free Press report.

Under the measure, cities and school districts could not pay any more than $15,000 for employee health insurance or 80 percent of premiums for more expensive insurance plans, the report said. Michigan Democrats said the caps attacked public employees and the middle class while Republicans said they controlled spending on employee benefits.

Gov. Rick Snyder is expected to sign the legislation, which reportedly will cut $60 million from the state's budget in 2011-12.

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