How are decisions about MPSERS Health Coverage Made?

Dec 12, 2017

"Most retirees think the plan changes come from union negotiations or from insurance vendors, but this isn't the case. Insurance vendors selected through a competitive bidding process administer their part of your health care coverage, but they don't make any decisions about the plan benefits, coinsurance, deductibles, co-payments, or out-of-pocket maximum amounts. Unlike the benefit plan you had as an employee of Michigan public schools, your retiree health care benefits and costs are decided by the Michigan Public School Employees' Retirement System board of directors with guidance from ORS benefit specialists and external health care benefit and actuarial consultants.

The board of directors is comprised of 12 members: 11 members represent active and retired public school employees and one represents state government. Keeping your health plan sustainable in the current health care environment is a serious responsibility to which the board of directors, ORS, and all of our vendors are committed. Every dollar spent on retiree health care coverage comes directly from public school budgets. The board's goal is to maintain a quality health care plan that is affordable to both the retirees and the schools. That's a challenging task given continuously rising health care costs. And yet, the board has been greatly successful. Over the years, the board has approved the addition of numerous benefits such as routine physicals, disease management programs, medication management programs, and the Living Well program, while keeping overall cost increases less than three percent. The ORS and the board of directors will continue to work on your behalf."  Blue Cross/Blue Shield, Best of Health