January 25, 2005, Introduced by Senators JOHNSON and SIKKEMA and referred to the Committee on Appropriations.
A bill to authorize the implementation and administration of a
medical insurance plan for certain school employees; to provide for
its creation and operation; and to prescribe powers and duties of
certain state officers and agencies.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. As used in this act:
(a) "Community college employee" means an employee of a
community college or junior college described in section 7 of
article VIII of the state constitution of 1963.
(b) "Department" means the department of civil service.
(c) "Medical insurance plan" means a state self-insured
benefit plan that includes medical health insurance benefits
implemented by the department under this act. A medical insurance
plan may include optical, dental, or other benefit coverages as
determined by the department.
(d) "School employee" means an employee of a school district,
a public school academy, or an intermediate school district, as
those terms are defined in the revised school code, 1976 PA 451,
MCL 380.1 to 380.1852.
(e) "School employee health care board" or "board" means the
school employee health care board created in section 2.
Sec. 2. (1) The school employee health care board is created
within the department.
(2) The board shall consist of the following members,
appointed by the governor:
(a) Two members selected by the governor.
(b) Two members recommended by the senate majority leader.
(c) Two members recommended by the speaker of the house of
representatives.
(3) The members first appointed to the board shall be
appointed within 90 days after the effective date of this act.
(4) Members of the board shall serve for terms of 2 years or
until a successor is appointed, whichever is later, except that of
the members first appointed, 3 shall serve for 1 year.
(5) If a vacancy occurs on the board, the governor shall make
an appointment for the unexpired term in the same manner as the
original appointment.
(6) The governor may remove a member of the board for
incompetency, dereliction of duty, malfeasance, misfeasance, or
nonfeasance in office, or any other good cause.
(7) The first meeting of the board shall be called by the
governor. At the first meeting, the board shall elect from among
its members a chairperson and other officers as it considers
necessary or appropriate. After the first meeting, the board shall
meet at least quarterly, or more frequently at the call of the
chairperson or if requested by 3 or more members.
(8) A majority of the members of the board constitute a quorum
for the transaction of business at a meeting of the board. A
majority of the members present and serving are required for
official action of the board.
(9) The business that the board may perform shall be conducted
at a public meeting of the board held in compliance with the open
meetings act, 1976 PA 267, MCL 15.261 to 15.275.
(10) A writing prepared, owned, used, in the possession of, or
retained by the board in the performance of an official function is
subject to the freedom of information act, 1976 PA 442, MCL 15.231
to 15.246.
(11) Members of the board shall serve without compensation.
However, members of the board may be reimbursed for their actual
and necessary expenses incurred in the performance of their
official duties as members of the board.
(12) The board shall do all of the following:
(a) Design the medical insurance plan required under section 3
to provide the optimal combination of coverage, cost, choice, and
stability, in the judgment of the board.
(b) Include more than 1 benefit plan and more than 1 tier of
premium rates for any medical insurance plan. Medical insurance
plans and premium rates may vary across geographic regions
established by the board.
(c) Include claims reserves, stabilization reserves,
reinsurance, and other features that in the judgment of the board
will result in long-term stability and solvency of the medical
insurance plan.
(d) Include in the medical insurance plan consumer education,
including wellness programs and measures encouraging the wise use
of health coverage, to the extent determined to be appropriate by
the board.
Sec. 3. Beginning July 1, 2005, the department of civil
service shall implement and administer a medical insurance plan for
school employees and community college employees as determined by
the board.
Sec. 4. (1) Except as otherwise provided in subsection (2), if
a school district or community college chooses to provide medical
insurance to its employees, then it shall provide only the medical
insurance plan determined by the board and operated by the
department as provided in this act. A school district or a
community college shall pay the cost of the medical insurance plan,
including administrative costs, to the department as determined by
the board.
(2) If a collective bargaining agreement that provides medical
insurance is in effect as of July 1, 2005 for employees of a school
district or community college, and if the employee benefits
provisions are not in compliance with subsection (1), then
subsection (1) does not apply to that school district or community
college until after the expiration of that collective bargaining
agreement.
(3) Not less than 120 days before a school district or
community college provides a medical insurance plan to its
employees under this act, the department shall provide detailed
information about the medical insurance plan to those employees.
Sec. 5. An institution of higher education described in
section 5 or 6 of article VIII of the state constitution of 1963
may contract with the department to provide the medical insurance
plan to employees of the institution of higher education.