At Issue
Your health care benefits are on the chopping block
In the last two years alone, concessions made by school employees with MESSA insurance have reduced districts’ health care costs by more than $268 million. Still, politicians continue to call for more sacrifice. We’re fighting to preserve this critically important benefit.
 |
| Ferndale's Mike Miller learned the value of quality health benefits |
Let’s get right to the point: The high cost of health care coupled with declining state financial support for education has placed health benefits for school employees squarely on the chopping block.
Over the past two years, school employees who have bargained MESSA coverage have helped districts save more than $268 million by agreeing to take health plans that cost less and by paying an increasing portion of their monthly premiums.
MESSA serves about 50 percent of Michigan school districts; if similar savings are occurring in the 50 percent of the market MESSA does not serve, school employees will have helped reduce school district health care costs by more than $500 million in two years.
Even with these concessions, some school board members, lawmakers and others want further sacrifice.
There doesn’t seem to be an end in sight
.“School employees are doing all they can to help districts reduce costs,” said MEA President Iris Salters.
Detrimental impact
The tradeoffs can have a detrimental impact on school employees and their families. Some have been forced to choose whether to pursue medical treatment when needed, while others, especially school support staff, find their share of their health insurance eats up most of their paychecks. Some support staff personnel have had their work hours cut so much that they no longer qualify for health insurance.
“You have to be healthy to be a good employee and to be there for the kids,” says Connie Boylan, president of the Traverse City Clerical, Assistants, Paraprofessionals and Secretarial Association. “Without health benefits, districts are not going to attract the type of employees they want and students need.”
In Michigan, public employees including public school workers first gained the right to negotiate for health insurance (and wages and working conditions) in 1965, with the passage of the Public Employment Relations Act, also known as PERA.
Retaining local control
The right to bargain health benefits at local bargaining tables is important because local priorities can be different. Along with wages and other working conditions, having a quality health care package can help attract and retain qualified teachers and other school employees.
“We never, ever want to give up the right to bargain for our health benefits,” says Tricia Newton, a high school math teacher in New Buffalo. “We want the local control.”
‘MESSA a lifesaver’
Mike Miller, a history teacher from Ferndale, is thankful for locally bargained health benefits. As president of the Ferndale Education Association, Miller says that he and his members have agreed to help the district save money by switching from one MESSA health plan to another and by increasing prescription co-pays. The tradeoffs, while difficult, saved the jobs of 15 people, Miller said.
The value of quality health insurance hit home for Miller, who started teaching in 1963, late last year. Following complications after an emergency medical procedure, Miller was diagnosed with cancer. He underwent chemotherapy to help shrink his tumors.
“MESSA has been a lifesaver,” says Mike Miller, who has rarely been ill over the years. “Without it, I would’ve lost my house.”
The costs of treatment—from hospitalizations to chemotherapy to medication— were largely covered under his health plan, he said. Because of his good health coverage, Miller said he wasn’t forced to make tough choices about whether to seek treatment.
“One tube of wound ointment that I needed cost $500,” Miller says. “If I didn’t have insurance, I wouldn’t get that.”
Because he did have insurance to cover the prescription, Miller says a terrible bed sore healed. He also received nursing help at home when needed.
Top bargaining priority
Even if MEA members are forced to give up MESSA, the attacks on health insurance don’t go away. Over the past several years, Clarkston teachers gave up MESSA and made other concessions on health coverage, said Brooke Davis, president of the Clarkston EA.
A few months ago, a district official mentioned the possibility of controversial health reimbursement accounts. With their contract expiring in August, Clarkston teachers have indicated that preserving health insurance is a bargaining priority, Davis said.
“Members know that you can’t put a price tag on being healthy and having a healthy family,” he said.
Health insurance is a top bargaining issue in most districts, says MEA’s new bargaining consultant, Bob Thomas.
“As always, we will strive to produce the most favorable bargaining results for our members,” Thomas said.
Lawmakers continue attacks
In addition to the local attacks on benefits, some partisan lawmakers in Lansing have led a years-long campaign against school employees’ right to bargain the health insurance of their choice. The most recent proposals—Senate Bills 418- 421—would allow local governments, public schools and public universities to join health insurance pools. MEA opposes the legislation, which would require all pools to release individual organization claims history, because it would allow for cherry-picking of pools and likely result in higher costs for health insurance for many groups.
This legislation and previous attempts to curtail benefits will not solve the real problems—the lack of a state commitment to adequately fund education and escalating costs for health care. Cutting benefits actually may deter qualified individuals from pursuing a career in education, many MEA members say.
Quality benefits/quality teachers
“Do you want quality teachers in the classroom?” asks Frank Burger, who teaches for Carman-Ainsworth Community Schools. “If you don’t offer a quality benefit package, you’re not going to have quality teachers.”
Coupled with plan changes that thousands of MEA members have agreed to, MESSA’s recent insurance rate increases have been extremely low. At a time when some competing plans are announcing rate increases as high as 25 percent, MESSA’s low rate increases are welcome news for bargainers and members alike.
MESSA’s average rate increase for the 2006-07 school year was below 5 percent; for 2007-2008, the average rate increase is under 3 percent. MESSA is able to keep rate increases low because of the power of its pooling strategy and because of the movement by MESSA members to health plans that cost less while retaining quality coverage.
“Many districts are actually paying less for health benefits this year than last year,” said Cynthia Irwin, executive director of MESSA.
‘Market forces foster options’
Competition exists in Michigan’s school health insurance market. In a comprehensive study of the market commissioned by state Senate Republicans in 2005, actuaries from the Hay Group found more than 200 plans available.
The Michigan School Business Officials’ 2006 health survey found nearly half of school districts reported that they solicited competitive bids for health insurance. The same survey revealed that 78 percent raised prescription co-payments, 74 percent changed plans, and 54 percent increased deductibles.
“Clearly market forces are working to foster cost-effective options while retaining local choice, local control and local priorities within collective bargaining,” Irwin said. Investing in education, including employees who teach and support students at school, is the only way to ensure that students receive the education they need to prepare them for the jobs of our global economy, she said.