2011 Senate Bill 400

Dismantle MEA’s school insurance sale device

Introduced in the Senate

June 1, 2011

Introduced by Sen. Phil Pavlov (R-25)

To require school districts to be the actual insurance “policyholder” for health benefits provided for employees. This would dismantle the device by which the MEA school employee’s union’s insurance subsidiary (MESSA) structures the coverage to school districts. Under the bill, if the union has negotiated a labor contract with a school district that requires the district to buy the union's insurance under the union's terms, the provision would not apply until after the contract has expired. Dismantling this arrangement is one of the requirements schools must meet to get extra money under the 2011-2012 budget.

Referred to the Committee on Education

June 16, 2011

Reported without amendment

With the recommendation that the substitute (S-2) be adopted and that the bill then pass.

June 21, 2011

Substitute offered

To adopt a version of the bill that strips out the requirement that schools be the employee health insurance policyholder, and instead allows MESSA to still be the policyholder if it provides quick access to employee claims and cost information (which among other things is needed to get competitive bids from other potential insurers).

The substitute passed by voice vote

June 22, 2011

Passed in the Senate 26 to 12 (details)

To require school districts to be the actual insurance “policyholder” for health benefits provided for employees, or else to be given quick access by the actual policyholder to emplolyee claims and cost information. This involves the device by which the MEA school employee’s union’s insurance subsidiary (MESSA) structures the coverage to school districts, in which MESSA is the actual policyholder (and Blue Cross Blue Shield the underwriter). Dismantling this arrangement is one of the requirements schools must meet to get extra money under the 2011-2012 budget.

Received in the House

June 22, 2011

Referred to the Committee on Education