Small business, big government, and benefits reform

By The Center for Michigan - August 6, 2009
Two fresh pieces of news this week illustrate, in completely different ways, the value of considering House Speaker Andy Dillon's plan to overhaul and pool health care benefits for public employees.

First, small business owners got a shock when Blue Cross and Blue Shield of Michigan announced plans to begin rating small employers and charging premiums based on claims experience. The change is likely to result in higher premiums for many small businesses and their employees, according to Crain's Detroit Business.

Dillon's statewide pool could be expanded to allow small businesses and entrepreneurs to take advantage of pooling and gain bargaining power over prices.

Second, Wayne County Commissioners came under fire by the Detroit Free Press for refusing to make benefits sacrifices when many other public workers across the state, and in Wayne County government, had already done so....Dillon's statewide pooling approach could, if successful, assure fairness and consistent coverage levels across borders -- and create economies of scale and bargaining power to the benefit of taxpayers.