Mich. Senate Approves Changes Targeting School Health Costs

The Michigan GOP-led Senate narrowly approved bills Tuesday aimed at lowering the health insurance costs of K-12 schools and other public employers, a key change Republicans want in exchange for backing a tax increase.

“There’s got to be an end to this paralysis,” said Senate Majority Leader Mike Bishop, R-Rochester.

While Democrats still opposed the measure because it is not directly linked to higher tax revenue, Bishop was hopeful the 20-18 vote would get a response from the Democratic-controlled House. Republicans want a tax hike to originate there.

The legislation would let schools, public universities and local governments pool their workers’ health coverage and require public employers to competitively solicit bids for health benefits. The measure could save hundreds of millions of dollars a year in school districts but is controversial because it would open up the claims data of an insurer affiliated with the Michigan Education Association, the state’s largest teachers’ union.

The Michigan Education Special Services Association, or MESSA, provides insurance plans for many K-12 school districts and community colleges.

Democratic Lt. Gov. John Cherry, who earlier Tuesday cast a tie-breaking vote against the legislation before the GOP later got enough votes, said of the pooling legislation: “We can support that reform as long as it’s tie-barred to the revenue package we need.”

Topics Legislation Michigan Politics