Chair Talk

August 2009

I recently received a letter from the Michigan Association of Retired School Personnel (MARSP) asking our association to work with them and other organizations on the issue of the Constitutional Convention ballot item for November 2010. MARSP has taken an official position of opposition to the opening of the Michigan Constitution. I have informed the MARSP Executive Director that we would discuss this issue at our August CC meeting and I would inform her as to our position on the issue.

Recently there has been a lot of publicity surrounding the proposal by House Speaker Andy Dillon for one Public Employee Health System. This proposal would include all employees of the state, schools, counties, cities, townships and other public entities in one health care plan. His proposal calls for this plan to take effect on January 1, 2010. Needless to say the announcement has support from various politicians, school administrators, school boards and opposition from some labor unions and the MEA. Some organizations are not taking a position until actual legislation has been introduced. We will monitor the Legislative website for any legislation that deals with this issue. I had invited Speaker Dillon (or a staff member) to our August CC meeting to discuss his proposal and answer any questions that our group might have. During a telephone conversation with Rep. Dillon’s office on Monday, I was informed that the Speaker had another appointment on Friday and would be unable to attend. I then asked if a staff member that was familiar with the proposal would be able to attend our meeting — I was told that they would call me back and let me know. I do not expect anyone from Speaker Dillon’s office to attend our meeting.

The health care reform proposal put forth by Speaker Dillon is a very broad proposal and the time frame he suggests (implementation date of January 1, 2010) seems absurd. In an article in the Lansing State Journal the Speaker says there are 83 counties, more that 630 cities, 1250 townships, 839 school districts and various other governmental units that would be included in his Public Employee Health Plan. Using very simple mathematics, there are over 2800+ entities to agree on one health plan by January. Those 2800+ don’t include the various retirement systems involved or the numerous bargaining units in state government. I don’t believe that the speaker has ever had every democrat in his caucus vote the same on any one issue let alone over 2800 separate entities.

Speaker Dillon states in his proposal that they can save over $900 million per year in his plan was adopted. There are only 3 ways to save the amount of money the speaker is talking about:

  1. Reduce the amounts that doctors, hospitals, labs, drug companies, and medical supplies (etc.) charge.
  2. Reduce benefits
  3. Increase co-pays, deductibles, premiums etc. that the member pays

Out of the three listed above the Dillon proposal does not address #1 but he does discuss 2 and 3. Expect your benefits to be reduced and your co-pays, deductibles, premiums etc. to increase if his proposal is adopted.

Editor’s note: Bob Kopasz is Chair of the Michigan SERA Council. He may be reached at P.O. Box 692, Mt. Morris, MI 48458; phone 810/240-8380

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