Do the bid solicitation requirements of Act 106 apply to all public employers or just those employers participating in a pooled plan?
Individual public employers are subject to the bid requirements if their plans are insured (i.e., not self-funded). Pooled plans are subject to the bid requirements whether their benefit plans are self-funded or insured. See section 5(2) of P.A. 106 of 2007; MCL 124.75(2). A public employer has 90 employees in a health benefit plan and 70 other employees in a separate plan. Both are underwritten by the same insurer. Can the two groups be combined to put them over 100 employees in order to require the insurer to release its claims data for each plan under section 15(1) of P.A. 106 of 2007; MCL 124.85(1)? No. Section 15(1) requires that 100 employees be in a single benefit plan in order to be provided with claims utilization and cost information. However, under section 15(2) the employer could receive the data for the employees in an aggregated form for all the employees.
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