Public Employees Health Benefit Act

In an effort to provide public employees with quality health care while effectively addressing escalating health care costs, AFT Michigan and the International Union of Operating Engineers, Local 547, the AFL-CIO and other unions and school management groups, are again working with various legislators to develop a proposal to significantly improve health care, save money and preserve health benefits as a subject for collective bargaining.

The Legislation passed the Michigan Senate and is now in the Michigan House.  Please take a minute now and send a letter to your Representative urging them to support the Public Employees Health Benefit Act.

Sample Letter for Campaign

Subject: Support Health Benefit Act

Dear [ Decision Maker ] ,

I am writing today to urge your support of Senate Bills 418, 419, 420 and 421, collectively known as the Public Employees Health Benefit Act.

These bills would provide public employees with quality health care while effectively addressing the escalating health care costs. These bills represent a piece of government reform that we can all get behind that will save money, improve health care, and preserve health benefits as a subject for collective bargaining.

This legislation is supported by a broad coalition of labor, business, and government organizations including my union, AFT Michigan.

Sincerely,

Campaign Launched:
September 05, 2007


Background Information

Public Employees Health Benefit Act

In an effort to provide public employees with quality health care while effectively addressing escalating health care costs, AFT Michigan and the International Union of Operating Engineers, Local 547, the AFL-CIO and other unions and school management groups are again working with various legislators to develop a proposal to significantly improve the delivery of public employee health care.

On April 19, Senate Bills 418, 419, 420, and 421 were introduced and were apporved by the Senate on September 4th. This package of bills is called the "Public Employees' Health Benefit Act" which includes the following provisions:

Comprehensive Health Care Purchased Through Coalition/Regional Pools

  • Public employers will be encouraged to join together to form regional purchasing pools or to participate in local purchasing pools consistent with maintaining existing collective bargaining rights.
  • Purchasing pools offer the opportunity for public employers to leverage the purchasing power of a coalition to obtain improved pricing of administrative services and the savings that accrue from self-funding.

Transparent Health Care Cost Information for Public Employer and Employees

  • Public employers will have access to detailed claims information at the hospital and physician level, subject to meeting HIPAA regulations.
  • Public employees will have access to information on the cost of physician and hospital health care services.

 

Talking Points:

  • This proposal will save public employers and employees' money spent on health care.
  • It will maintain collective bargaining rights and the ability to negotiate health care coverage at the local level.
  • The state will not mandate participation in the local insurance pools, but we are convinced that if employees exercise the option through collective bargaining, there will be significant health care cost savings.
  • Participation in this plan will be open to all school districts, public school academies, intermediate school districts, community and junior colleges, public universities, and other public employers.
  • This legislative proposal will provide employees and employers with health care claim utilization and cost data that can be used to make informed decisions about health care benefits and costs through the collective bargaining process.
  • In total, we estimate school health care savings of 6% without reducing employee coverage. These are real dollars that can be used for programs and services to students and communities.