MI SB1152

Allows public employer pooled health benefit plans operating for 5 years or more to elect an alternative minimum cash reserve requirement of 2.5% of the preceding year's claims plus the designated reserve for incurred but not reported claims, instead of the standard 25% of aggregate contributions or 35% of claims paid.

Pooled plans electing the alternative reserve option may not satisfy any portion of the requirement with a letter of credit, whereas standard plans can use letters of credit to cover up to 100% in year one, 75% in year two, and 50% in year three and beyond.

Requires pooled plans to maintain reserves in a separate, identifiable account invested in specified insurance code-approved investments and maintain excess loss insurance approved by the commissioner.

Requires annual audited financial statements within 90 days of fiscal year end, quarterly unaudited statements within 60 days, and quarterly certifications that reserves are sufficient and excess loss coverage is maintained.

Authorizes the commissioner to order pooled plans to collect additional contributions from members to restore inadequate reserves and to suspend or dissolve plans that fail to maintain required reserves or meet other regulatory requirements.