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Michigan Education Special Services Association: The MEA's Money Machine
By
Mr. Joseph P. Overton
and
Mr. Andrew Bockelman
/ Posted: Nov. 1, 1993
This exhaustive report illuminates the inner workings of the Michigan Education Association's health insurance division, known as MESSA. It documents how tens of millions of the public's education tax dollars are wasted each year on uncompetitive teacher health insurance, and how MESSA is part of a systematic plan to subsidize the MEA's basic operation and political activity. 64 pages.
Contents
Executive Summary
Introduction
A Force to be Reckoned With — The Michigan Education Association
The MEA’s Three Subsidiaries
The MEA and the Michigan Education Special Services Association
Figure 1
Explanation of MESSA
An Overview of How MESSA Functions
The Organizational Structure of MESSA
Legal Environment for MESSA
The Unseen Importance of MESSA to the MEA
Issues of Concern for the Public
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
Policy Recommendations
Appendix I
Appendix II
Appendix III
End Notes
SKU: S1993-10
Categories:
Education
;
Insurance
;
Labor
Publication:
Study
Next page:
Executive Summary
More by Mr. 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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Ensuring Insurance Competition
Teachers Deserve Good Benefits; Schools Deserve To Know What They Cost
Teacher Health Insurance Money Should Not Fund Politics
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