Michigan Legislature Retirees Could Lose Free Health Care

Published: Mon 25 Jan 2010

Thomas Kristoffersen

For anyone who planned to seek a Michigan legislative office to get health care benefits for life, it may be time to switch to Plan B.

Democrats in the Michigan House and Senate say they will try to end the health benefits for all retired legislators. And if they have their way, that will even include those lawmaker already vested in the plan.

The reason for the suggestion is money. The cost of the lifetime benefits for lawmakers who are at least 55 and have held office at least six years is $5 million annually. The Democrats label the perk as "extravagant," "a crime" and "out of step with reality" during a time when people are struggling to get through the worst downturn of the economy since the Great Depression.

A similar measure was proposed last year but didn't make it through the Michigan Senate. Lawmakers on both side of the aisle are all for saving taxpayers money. But there is disagreement between the Democratic-controlled House and Republican-led Senate whether repeal of the benefit should affect current legislators as well as those who will be elected in the future.

There are term limits in the Michigan Legislature. The maximum is eight years in the Senate and six years in the House.

One Democratic senator says the proposal likely would be the subject of a court challenge because it would apply to those legislators already holding office. However, she said legal advice indicates the ban would hold up in court.

She said the public is angry about paying for the legislative health benefit. "This may be as aggravating as smoking in restaurants," she said in reference to Michigan recently enacting a ban on smoking in work places, including restaurants and bars. Exempt from the ban are the Detroit casino gaming floors and cigar bars.

The Republican majority leader of the Senate suggests legislators pay 20 percent of their health care premiums unless they are in a health savings account or wellness program. As another way to save money, he also proposed cutting teachers' and state and local government employees' salaries by 5 percent. He says the plan would save the state up to $2 billion dollars.

Gov. Jennifer Granholm said she will offer her own recommendations on spending and tax restructuring when she delivers her State of the State address Feb. 3. Michigan faces a budget deficit of nearly $2 billion.