Changing market for teacher health care

As Michigan’s public purse has continually tightened in recent years, educators’ health care plans have often received the spotlight from reform-minded legislators and interest groups. Four years ago, for example, the controversial Hay Report held up school employee health care as the most generous among numerous expensive public employee health benefits systems in Michigan.

Perhaps through public pressure, response from insurers, or both, the market is beginning to change, as evidenced by a recent teacher contract settlement in Pinckney.

Here’s the take of Gary Fralick, communications director for MESSA, the health insurance arm of the Michigan Education Association…

“The Pinckney teachers just came back to MESSA in a money-saving move ($360,000 saved from now to June alone). You’ll remember Pinckney as the district the Mackinac Center has touted as an example of a district that moved away from MESSA and saved $800,000. Well it ended up being a broken promise and costing the district more than MESSA.

“The district administration and its teachers are working together these days. You will also notice all of the new co-payments and deductibles mentioned below. We’ve launched seven new options effective January 1. Eighty percent of our members are now in a PPO plan. And as of January 1, 73 percent will have a drug card with higher co-payments.

The market has changed, and we’ve reformed our benefit structure and re-invented our business model. Many district are paying less for MESSA than they did three years ago.”