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2011 House Bill 4700: Dismantle MEA’s school insurance sales device

Public Act 95 of 2011

Introduced by Rep. Deb Shaughnessy (R) on May 26, 2011
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 union’s insurance subsidiary (MESSA) structures the coverage it sells 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 state budget.   Official Text and Analysis.
Referred to the House Education Committee on May 26, 2011
Reported in the House on June 22, 2011
With the recommendation that the substitute (H-3) be adopted and that the bill then pass.
Substitute offered in the House on June 22, 2011
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 in the House on June 22, 2011
Passed 80 to 30 in the House on June 23, 2011.
    See Who Voted "Yes" and Who Voted "No".
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 Senate on June 28, 2011
Signed by Gov. Rick Snyder on July 15, 2011

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