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Study
Issues of Concern for the Public
By
Andrew Bockelman
and
Joseph P. Overton
, published on Nov. 1, 1993
Contents
A. Unfair Market Advantages for MESSA
MESSA’s Biased Position in the Collective Bargaining Process
A Case in Point: MESSA’s Role in the Collective Bargaining Process
What Is the Importance of Competitive Bidding?
The Potential Cost Savings of Competitive Bidding
B. The High Cost of MESSA Health Insurance
MESSA’s Generous Insurance Benefits
Concern About the Financial Efficiency of MESSA
Why Do School District's Purchase MESSA Insurance?
Considering the Financial Consequences of MESSA for School District Budgets
C. Problems of MESSA’s Operating Agreement with Blue Cross
MESSA's Transition to Blue Cross/Blue Shield of Michigan
The Nature of the Operating Agreement
The Wasteful Provisions of the Operating Agreement
Is MESSA Operating Illegally as an Insurance Company?
D. Concerns About the Propriety of MESSA’s Relationship with Blue Cross
Unfair Trade Practice Concerns
E. Significant Problems Encountered by School Districts
MESSA's Failure to Disclose Claims History to School Districts
MESSA’s Failure to Negotiate Changes in Insurance Contracts
MESSA’s Failure to Provide Sufficient Purchasing Options
The Question Regarding MESSA's Gift Coverage Program
The Dubious Requirement of Uniform Coverage for MESSA PAK Plans
Concerns About the Elimination of Dual Choice
F. The Relationship Involving MESSA and the MEA
Commercial Affiliation
The MEA’s Control Over MESSA
Figure 2
MESSA and the MEA in Action
The Issue of Agency
G. How MESSA Supports the MEA and Its Other Subsidiaries
The Marketing and Service Program Agreement
Table 1
MESSA’s Transactions With MEDNA
Table 2
An Insurance Company for MESSA?
H. Potential Actions by the MEA's Political Machine
The Nature of MEA Political Involvement
Concern Among MESSA's Critics
A Challenge for Michigan
Michigan Education Special Services Association: The MEA's Money Machine
Executive Summary
Introduction
Explanation of MESSA
Issues of Concern for the Public
A. Unfair Market Advantages for MESSA
B. The High Cost of MESSA Health Insurance
C. Problems of MESSA’s Operating Agreement with Blue Cross
D. Concerns About the Propriety of MESSA’s Relationship with Blue Cross
E. Significant Problems Encountered by School Districts
F. The Relationship Involving MESSA and the MEA
G. How MESSA Supports the MEA and Its Other Subsidiaries
H. Potential Actions by the MEA's Political Machine
Policy Recommendations
Appendix I
Appendix II
Appendix III
End Notes
Andrew Bockelman
More by Joseph P. Overton
An Inside Look at the Government-School Mentality
Right-to-Work Laws Accelerate Economic Development, New Study Finds Michigan Losing Ground to Right-to-Work States
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