Unions Propose Model for Saving Public School Health Care Dollars

Unions Propose Model for Saving Public School Health Care Dollars
10 August 2005
U.S. Newswire

LANSING, Mich., Aug. 10 /U.S. Newswire/ -- David Hecker, president of the Michigan Federation of Teachers and School Related Personnel (MFT & SRP/AFL-CIO), proposed significant improvements in the delivery of school employee health care before the Senate Appropriations Committee today. These improvements are outlined in a white paper-A Model for Saving Public School Health Care Dollars- put forth by the MFT & SRP and the International Union of Operating Engineers (IUOE/AFL-CIO), Local 547.

"Using the HayGroup report as the foundation," said Hecker for both unions, "our plan would save $156 million in the first year alone, more savings than two of the HayGroup proposals. The unions' proposal controls short term and long term health care costs by pooling large health care claims, increasing competition, and improving health care quality."

The HayGroup proposal was retained by the Michigan Legislative Council to report on the feasibility and cost-effectiveness of a consolidated statewide health benefits system for Michigan school employees.

"Addressing health care issues is not the strategy for filling the gaps in public education funding," Hecker noted. "These holes require a state revenue system that is adequate, stable and fair." However, Hecker continued, "Health care cost, access and quality are issues that must be addressed."

Phil Schloop, Business Manager for IUOE Local 547, indicated that a key component of the proposal would be state sponsored catastrophic stop loss coverage, similar to that used for auto insurance by the Michigan Catastrophic Claims Association and various federal programs for banking and natural disaster insurance.

Other elements of the proposal, available at www.mftsrp.org, include:

-- Competitive health care purchasing by local school districts through regional group-purchasing pools;

-- State of the art programs to improve employee health and manage chronic conditions;

-- Enhanced disclosure of hospital and physician performance on quality measures so that employees and their families can make informed provider choices;

-- Efficient administrative services that leverage industry standards, competition and information technology;

-- Transparent healthcare information so that school districts and community colleges as well as employees can make health care purchasing decisions based on cost and quality.

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The Michigan Federation of Teachers & School Related Personnel (MFT&SRP) AFT, AFL-CIO is a union of 35,000-members working in K-12 and intermediate school districts, community colleges, universities, and local government. The 94 locals extend as far south as Monroe and north to Whitefish Township in the Upper Peninsula.

The International Union of Operating Engineers (IUOE), Local 547, AFL-CIO, is a union of 6,000 members who work in various settings, including many school districts, community colleges, and universities throughout the state.

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Source: U.S. Newswire

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