2022 Election Updates

By Neema Katibai, JD Manager of Government and Insurance Affairs nkatibai@michigandental.org

Michigan Proposal 1

Proposal 1 was passed in the November 2022 election with nearly 2/3 of voters supporting the measure to amend the State Constitution. Specifically, Proposal 1 would reduce the total amount of time that a lawmaker could serve as a legislator from 14 years to 12 years and allow them to serve the full tenure in one chamber. It also requires all state lawmakers, the Governor, the Attorney General, and the Secretary of State to disclose certain financial information, such as their assets, all sources of income, outstanding liabilities, payments and gifts from lobbyists, continued benefits received from former employers, and more. Prior to Proposal 1, Michigan had one of the strictest term limit laws in the nation, which limited a lawmaker to six years total in the State House and 8 years total in the State Senate, limiting total service in the legislature to 14 years.

By allowing longer service in one chamber, Proposal 1 removed the incentive for legislators to prioritize their next election over the work of the current legislative cycle, and there is optimism that legislators will be given more of an opportunity to develop their policy-making skills.

Massachusetts Ballot Question— Dental Loss Ratio

On November 8, 2022, Massachusetts passed Question 2 on their statewide ballot to establish a dental loss ratio at 83% for dental plans and to require any excess premiums be remitted to customers. Without a loss ratio provision, dental plans are free to spend as much of the patient premiums they collect as they want on operational and administrative costs. The ballot question also required plans to disclose loss ratio projections and base rates prior to taking effect, as well as authorize the Massachusetts Division of Insurance to approve or disapprove of any product rates. The Question passed with over 70% of the vote.

The impact of Question 2 on individual practitioners or patients is yet to be seen. It is likely that any remitted funds for failing to meet the 83% requirement will go to the plan purchaser, whether that is an individual or an employer. However, there is no doubt that this is a win for organized dentistry in the effort to bring more transparency to dental insurance. The MDA is exploring options to pursue similar legislation in Michigan through either legislative efforts or a ballot initiative.

Remember to always respond to Action Alerts from the MDA. Your voice matters! Scan the code to sign up for text Action Alerts. A response takes less than a minute, but results can last a lifetime. WEST MICHIGAN DISTRICT DENTAL SOCIETY | HOLIDAY ISSUE 2022 15

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