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

• 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
  
  

• An Overview of How MESSA Functions
  
  
• The Organizational Structure of MESSA
  
  
• Legal Environment for MESSA
  
  
• The Unseen Importance of MESSA to the MEA
  
  

• 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