Font size:
A report to be released today says that Michigan pays 53 percent more for insurance for state workers and retirees than most states that have similar insurance arrangements.
“Michigan employees also contributed less to their overall health insurance cost — 10% of the total tab — than those in other states,” according to the Detroit Free Press.
Since compensation is made of both cash and benefits, I’m not sure it’s correct to say that Michigan employees “contribute less.” They may, however, take a larger portion of their compensation than employees in other states.
Since much of the amount they “pay” for insurance (in forgone salary) is hidden, it’s likely that the insurance they have is more generous than what they would have had they gotten paid more in cash and then bought a plan.
Given the high cost of insurance (brought about in part by such employment practices), it’s likely that Michigan taxpayers are indeed paying more than they should.
Cross-posted from State House Call.
Get insightful commentary and the most reliable research on Michigan issues sent straight to your inbox.
The Mackinac Center for Public Policy is a nonprofit research and educational institute that advances the principles of free markets and limited government. Through our research and education programs, we challenge government overreach and advocate for a free-market approach to public policy that frees people to realize their potential and dreams.
Please consider contributing to our work to advance a freer and more prosperous state.
