Jansens landmark measure gives schools opportunity to realize savings
LANSING — Thanks to a Michigan law on the books since 2007, west Michigan schools will soon have a certified Public Employer Pooled Plan (PEPP) to use for finding health insurance savings, said Sen. Mark C. Jansen.
“After 16 months of this law being on the books I’m glad to see it finally have an opportunity to help west Michigan schools save money,” said Jansen, R-Gaines Township. “This new PEPP shows our schools are being fiscally responsible by searching for additional cost saving measures.”
Essentially, a PEPP is a group of school districts working cooperatively to own and manage their health care programs in the most cost effective manner. The structure allows for access to claims data, which in turn helps districts to develop plans and programs to best meet their employees’ insurance needs.
Public Act 106 of 2007 was sponsored by Jansen to help local governments and school districts save money on the cost of public employee health benefits. The law allows for the development of optional health care pools and for medical, dental and optical benefits, and opens the process to competition by providing for increased access to claims and health care provider data.
When Jansen’s bill was enacted, it was estimated the new law would allow for significant savings. Any savings will remain with the school district.
The package received the support of more than two dozen organizations, including the Ottawa, Kent and Muskegon intermediate school districts; the Michigan Association of School Administrators; the Michigan Association of School Boards; the American Federation of Teachers; the AFL-CIO; and the Michigan Chamber of Commerce.
“The tireless efforts of schools in west Michigan helped make this vital law a reality,” Jansen said.
Posted: Wednesday, January 07, 2009
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