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By Rob Alway, Editor-in-Chief
PERE MARQUETTE TOWNSHIP — The Mason County Board of Commissioners may consider allowing employees to cash out accumulated sick time to help offset a 27% increase in health insurance premiums for 2027.
The commission’s Finance, Personnel and Rules Committee is scheduled to discuss the proposal Monday, Nov. 2, following a recommendation from County Administrator Kaitlyn Szczypka.
According to a memorandum from Szczypka, the county’s Blue Cross Blue Shield health insurance premiums are increasing 27% for 2027 after employee health care usage increased and costs rose 111% during the previous benefit year.
The Board of Commissioners has already approved the county’s 2027 health insurance plan. However, the increase in premiums is significantly greater than the 3% increase in the state’s allowable limits for employer contributions to public employee health insurance.
Under Michigan’s health care contribution limits, the maximum amounts counties and other public employers using the state’s hard-cap option may contribute toward employee health insurance in 2027 are $8,108.35 for single-person coverage, $17,107.66 for two-person coverage and $22,310.11 for family coverage.
Because the county’s insurance premiums are rising faster than the state contribution limits, most employees participating in the county’s health insurance plans will be required to pay a portion of their premiums. Under most plans, the county also will be unable to contribute to employees’ health savings accounts because of the limits.
To help employees manage those increased expenses, Szczypka is recommending that the county allow employees to receive payment for a portion of their accumulated sick time, regardless of their years of service.
Currently, the county’s employee handbook allows employees with at least 10 years of service to receive payment for half of their accumulated sick time, up to a specified maximum, upon termination of employment.
The proposed change would allow employees with fewer than 10 years of service to participate in a similar arrangement, potentially providing additional money to cover health insurance premiums and health savings account contributions.
Under the proposal, employees would receive payment for half of the sick hours they elect to cash out and would forfeit the other half.
Mason County Treasurer Andrew Kmetz prepared three possible scenarios showing the financial impact of allowing employees to cash out accumulated sick time.
If employees were permitted to cash out up to 120 hours of accumulated sick time, receiving payment for 60 hours, the estimated total cost to the county would be $145,800.15.
An option allowing employees to cash out 80 hours, receiving payment for 40 hours, would cost an estimated $102,819.27.
A third option, allowing employees to cash out 40 hours, receiving payment for 20 hours, would cost an estimated $54,949.85.
The estimates are based on employees’ accumulated sick time and their 2026 pay rates.
Szczypka also noted that the proposal could have an accounting benefit for the county. Under Governmental Accounting Standards Board requirements, the county must recognize certain unused employee leave as a financial liability.
Paying out accumulated sick time at 2026 wage rates could reduce that liability while providing employees with additional money to help cover increased health care expenses.
During the committee’s Oct. 20 meeting, Szczypka reported the 27% premium increase and said some employees had requested the opportunity to use their accumulated sick time to help pay the higher insurance premiums.
Committee members requested additional financial information before considering the matter. No action was taken at that meeting.
The committee is expected to review the three payout scenarios Monday and determine whether to recommend a policy change to the full Board of Commissioners.
The Finance, Personnel and Rules Committee will meet Monday, Nov. 2, at 9 a.m. in the conference room at the Mason County Airport Terminal, 5300 US-10.
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