HB 5345 panel concludes it lacks information to make major decisions

Pavlov introduces legislation to get data

The House Public Employee Health Care Reform Committee adjourned its last scheduled hearing no closer to a decision on House Bill 5345 than it was when it began meeting this summer.

The only conclusion the committee reached at the Dec. 15 hearing was that it still doesn't have the data and information necessary to decide whether putting all public employees under the same health plan is a good idea.

To get that information, the committee passed House Bill 5671, introduced by Rep. Phil Pavlov (R-St. Clair), which requires all public employers to provide information concerning health benefits.

In addition, the committee heard more testimony that questioned whether the plan proposed by House Speaker Andy Dillon could save any money, could be efficiently managed, or could preserve collective bargaining.

Brian Cote, group benefit consultant for the Cadillac Insurance Center, testified that legislation already exists that optimizes health care savings. "Under PA 106, employers must bid out insurance. The result has been savings while still protecting collective bargaining rights and continuing to provide good benefits."

To prove his point, Cote cited a 2007-08 MEA report that showed a 2 percent decrease in the cost of health care for public employees while rates increased by 5 percent in the private sector.

Kate Kohn-Parrott, Dillon's policy adviser, was the last to testify. As designer of the legislation to mandate a state-run health plan for public employees, she refuted previous testimony criticizing the plan.

While no further hearings are scheduled, the committee will continue meeting in smaller work groups and will continue to accept written testimony.

MEA members are urged to contact their legislators -- ask them to oppose House Bill 5345. Urge them to ask tough questions about purported savings and the elaborate bureaucracy that would be needed for a state plan.

MEA will continue to monitor legislation impacting your health insurance and collective bargaining rights -- stay tuned in 2010 for the latest developments.

Updated: December 16, 2009

Watch all video from HB 5345 hearings.

Hearing 8 Presentations:

Dr. Frederick Askari, Chair, University of Michigan's
Committee on the Economic Status of the Faculty

Paul Hufnagel, President, Michigan Professional Fire Fighters Union

Bryan Epling, President, International Association of Fire Fighters, Local #421, Lansing

Dr. Brent Knight, President, Lansing Community College