Create minimum health benefit

The Detroit News is highlighting ideas from various groups to promote discussion on reform, restructuring government and the economy.

Create minimum health benefit

Idea 29: Create a Michigan minimum health care benefit plan.

Why: Health care premiums have more than doubled this decade. With 18.7 percent of residents uninsured, Michigan needs affordable health care options. The majority of the uninsured are working, twice as likely to be employed at businesses with less than 100 workers and three times more likely to be self-employed.

Benefit: A minimum health benefit plan would create a portable, affordable option, while not increasing the state budget. It would preserve flexibility, competition and choice in the marketplace. It would appropriately spread health insurance risk, reduce costs and provide access to primary care services.

How: Legislation must establish a minimum benefit plan with a monthly premium of $150 or less per employee and $350 or less per family. The plan is not insurance, but covers the most often-used preventive, urgent care and chronic care services. More expensive services, such as hospitalization, that cover most needs could be included with annual dollar limits. Such plans exist in the marketplace.

Health plans doing business in Michigan would be required to make minimum benefit plans available and have flexibility in design, as long as they meet minimum benefit requirements and price targets. Employers must offer at least a minimum benefit plan, but are not required to pay for it or be precluded from offering richer plans. Individuals working 30 or more hours per week are required to purchase a minimum benefit plan if they do not already have other coverage. Individuals who decline will be assessed a $100 monthly fee to a state-administered fund to help cover the uninsured.

Obstacles: Some argue that Michigan should wait for Washington to fix the health care system. Others have reservations about imposing a health plan that covers only basic benefits on individuals.

Source: Grand Rapids Chamber of Commerce