Our Health Care Bills Become Law

Lately it seems every bargaining settlement include concessions on health care. Prescription drug, office visits, premium shares in a variety of ways employees are paying more.

And while we often disagree with management as to the magnitude of the "health care crisis," there has been a crisis. Costs are skyrocketing.

The status quo concerning health care was and is not acceptable.

In 2005, SB 55 & 56 were introduced and if enacted would have taken away our right to bargain health care, instead putting all school employees into a state designed, state run health care plan.

On top of all of this, in spring 2005, the Michigan Legislative Council announced that it is contracting with the Hay Group to study "the Feasibility and Cost-Effectiveness of a Consolidated State-wide Health Benefits System for Michigan Public School Employees."

It was clear that like SB55 & 56, the Hay Group Report would not be good for AFT Michigan members and therefore, not acceptable. With the Hay Group Report due in August 2005, AFT Michigan decided to be proactive. Using ideas that labor had been discussing for years we develop our own plan for addressing the health care crisis and changing the status quo.

Operating Engineers Local 547 joined with us, and working with health care experts, a plan was developed.

At an August 2005, Senate Hearing, The Hay Group Report presented three options, but recommended their Option 3 which would force all school employees into a very limited number of standard plans, severely limiting if not eliminating health care as a subject of bargaining.

With Local 547 and Dr. Suzanne Paranjpe, Executive Director of the AFL-CIO/Employer Purchasing Coalition and the report's major author, AFT Michigan said "no" to the Hay Group Report and presented our plan as an alternative.

In the months that followed the AFT Michigan/Operating Engineers Local 547 plan was endorsed by the Michigan State AFL-CIO. All information about it went out with logos of the AFL-CIO, AFT Michigan, Operating Engineers Local 547, AFSCME, and the SEIU. (In 2007 when the bill was expanded to include municipalities, colleges and universities, the Fire Fighters union logo joined the letterhead). The legislation also had the support of school management associations.

However, the Michigan Education Association (MEA) opposed the AFT Michigan, et.al. plan, resulting in a legislative battle all would rather have avoided. A number of meetings with MEA and MESSA, the MEA's health insurance arm, to reach an acceptable compromise were unsuccessful as MEA/MESSA insisted on the removal of key components of the legislation.

The MEA's opposition also resulted in most Democrats in the legislature opposing the bill. To the MEA's credit they are a powerful political force, one, by the way, AFT Michigan works together with on the overwhelming majority of issues in Lansing.

However, the Republican Senate Leadership agreed to sponsor the legislation and it passed that chamber. AFT Michigan has always stated it is an issue based organization. While this often results in our working much more often and more closely with Democrats, this time it did not.

The bills also passed the House Education Committee but died on the House floor, December 31, 2006.

When the new legislative session began in 2007, a revised version of the legislation passed the Senate in April. This revised version eliminated a component that would have reduced the cost of catastrophic insurance, but still left very important components intact, including the availability of claims data and making it easier to pool groups together to reduce costs.

The House stripped the bill in September, and passed a version AFT Michigan, et.al. could no longer support.

The Senate version of the bill, however, became law as part of the "budget deal" when Republican Senate Leadership insisted on the Senate version as a trade-off for much needed tax increases that the Republicans opposed.

For the most part, the media reported about the "anti-MESSA" legislation ignoring frequent clarifications that the legislation was initiated by unions for the benefit of the members. MESSA was not a consideration. The collective membership of the supporting unions was the consideration.

Note: This very brief summary does not come close to describing the effort behind securing this legislation-not close. AFT Michigan Legislative Coordinator Louise Somalski was our driving force in Lansing. Louise never gave up. Persevered in the face of unfounded and unwarranted verbal attacks that this legislation eliminated collective bargaining when, in fact, it was designed to save bargaining. (After the legislation passed, the MEA agreed it does not affect bargaining.) Ellen Hoekstra of Capitol Services, AFT Michigan Legislative Agent and Operating Engineers Local 547 lobbyist, provided important support. As did Ken Fletcher, then lobbyist for the Michigan AFLCIO, and AFSCME's lobbyist, Nick Ciaramitaro.

Dr. Paranjpe was the plan's primary author, although she would be the first to say it was a team effort. Attorneys Andy Nickelhoff and Mike Zagaroli were invaluable. Operating Engineers Local 547 Business Agent Phil Schloop knows more about health care than probably any other labor leader and his knowledge was of great benefit. John Jacobitz, then of MEBS and now with Associated Mutual, played an essential role as well.