An Educated Decision for Health Insurance

Aug. 17, 2011 - PRLog -- Grand Rapids, Aug 17, 2011: With less than 4,000 residents at the last census, the Allegan city of Otsego can hardly be called sprawling. Although a perfectly respectable place to live, there are many looking at Otsego’s dot on the map, and wondering how the village can have sparked such a controversy heard all across the country.  

The Otsego Education Association caused ripples in the K-12 community with its recent decision to change health insurance providers from MESSA (Michigan Education Special Services Association) to Priority Health. This polarizing decision is being hailed both as a sharp anti-union maneuver, and a well-planned choice for the greater good of some 131 Otsego-area teachers.

Why the vivid reaction? It seems to only make sense. Accepting MESSA’s rates for the 2011-2012 year would have meant painfully deep salary cuts. The EOA were under pressure to do their shopping elsewhere.

With Priority, Otsego’s health care costs will drop around $500,000 – or $4,200 per insured teacher with, evidently, little policy services lost between providers. These savings are being put into a 2% base pay increase as, as well as an extra step bonus for teachers who have a long work history.

The things MESSA could have offered, the OEA are covering themselves. In addition to Priority’s benefits, the district will provide things like hearing aids, prescribed orthopedic shoes, chemo-wigs, and even a $1,500 deductable for using an out-of-network hospital in case of an emergency. It should be a win-win.

Instead, the MESSA are cautioning against the OEA against chasing sails, maintaining that the district is being fooled by “teaser rates” locking them in so that Priority can hike costs with impunity.

Is this concern about money, or union loyalty? For years, MESSA, an affiliate of the Michigan Education Association, were the go-to service of Michigan teachers with very little viable competition. Before insurance prices began to rise dramatically, MESSA did not have much incentive to try and be flexible with their rates.

But advocates of MESSA point to more than just the familiar name. MESSA has had a history of quality, reliable service and benefits. Pitted against the scope of care (or lack thereof?) offered by competitors, it does appear that MESSA has the advantage. For example, beneficiaries of Priority Health have access to a limited number of in-network doctors in the Otsego/Kalamazoo area; use of facilities like U of M’s campus or the Mayo Clinic is restricted completely.

Here are the nuts and bolts – low premiums with Priority may mean paying less per month now, but should an emergency strike, that financial burden can quickly become unmerciful. Higher premiums with MESSA seem unsavory, but offer more services and in the event of trauma, families have less to worry about.

Whether the OEA will regret, or laud its own decision, only time will tell. A lot of homework had to be done to make sure that their employees would truly be getting the best benefits; while you may or may not be part of their community, you have us at Access Insurance Agencies.

Stop by our 2258 28th St. Grand Rapids office, visit www.accessgr.com, or call us at (616)245-5555.

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