January 28, 2004

LANSING – Fresh off her 2004 State of the State Address, Governor Jennifer M. Granholm today visited a child care center in Muskegon that utilizes an innovative program operated by Muskegon County designed to help employers offer affordable health care benefits to their workers. Granholm called for a statewide expansion of "third share" health care benefit programs in her address last night.

"Programs such as Access Health in Muskegon have benefited employers, workers, and health care facilities here by making health care coverage an affordable benefit for businesses and their employees," Granholm said. "At least 10 percent of our state’s population is uninsured, making the need for a statewide expansion of ‘third share’ benefit programs vital if we wish to improve the quality of life to attract new businesses and jobs."

Under the "third share" program, the premium for health care coverage is split three ways – the employer pays a third, the worker pays a third, and the county pays a third. In Muskegon County, the business and employee each pay $46 a month per worker, while the county contributes $56 a month. Currently, nine such programs are in operation around the state, with another 20 in development. The Governor has proposed expanding the program to all 83 counties.

In Muskegon, the Access Health program has 400 businesses enrolled, offering benefits to more than 1,500 workers. Today, the Governor visited one of the businesses – Wee Care Child Development Center – and spoke with the center’s owner and employees about the advantages of the program.

"It is clear that the ‘third share’ program has benefited the Wee Care Child Development Center," Granholm said. "The center’s owner shared with me that prior to offering health care benefits through Access Health, her turn over rate among employees was 40 percent. Since offering benefits, her turn over rate has dropped to 5 percent."

Estimates show that roughly 1.5 million Michigan residents are uninsured. Of the uninsured, approximately 60 to 75 percent are employed in jobs that do not offer health care benefits or have health care coverage premiums they cannot afford to pay. Studies have shown that uninsured persons often delay necessary health care which makes their illness worse and usually more costly.

The expansion of "third share" programs was just one new health care initiative the Governor unveiled during Tuesday’s State of the State Address. Others included offering a statewide prescription drug discount card that will provide up to 20 percent discounts on medications; opening five more Federally Qualified Health Care (FQHC) clinics in Michigan; boosting enrollment in the MIChild and Healthy Kids programs by mobilizing schools, faith-based organizations, and civic groups to reach out to families that may qualify; and announcing the State Surgeon General will unveil her "Prescription for Michigan" plan in February to encourage Michigan residents to live healthier.