Public Employees Health Benefit Act

AFT Michigan with the International Union of Operating Engineers, Local 547, and the AFL-CIO proposed legislation - the Public Employees Health Benefit Act - as a way of reducing health care costs to school districts and local units of governments while keeping health benefits as a subject for collective bargaining.

The legislation, Senate Bills 418-421, passed the Michigan Senate but in the Michigan House were basically gutted and we are opposed to the House version of these bills. The House and Senate versions of the bills have been sent to Conference Committee to work out any differences and may likely become a bargaining chip as the legislature works on a budget compromise.

Please take a minute right now to send an e-mail to your State Representative expressing your disappointment with the actions of the House that stripped our bills of their content.

Sample Letter for Campaign

Subject: Disappointed in the House Version of the Health Benefit Act

Dear [ Decision Maker ] ,

I am writing today to express my disappointment with House action on Senate Bills 418, 419, 420 and 421, collectively known as the Public Employees Health Benefit Act.

These bills would have provided public employees with quality health care while effectively addressing the escalating health care costs and preserving collective bargaining rights.

House action amending Senate Bill 418 by requiring that claims data be released only by region and not by employer, means that employers and employees, without access to their own group claims data, will not be able to make informed decisions about health care benefits and costs at the bargaining table.

I am disappointed that the House has chosen to gut the main provision of the bills, and hope that if you have an opportunity to vote on this issue again, you will vote for the restored version of Senate Bill 418. This vote, and this issue, is important to my union, AFT Michigan, and the entire AFL-CIO.

Sincerely,

Campaign Launched:
September 20, 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.