LANSING (AP) - Senate Republicans are renewing efforts to reward people for exercising and not smoking, a move they say will drive down health care costs.

Legislation unveiled yesterday by state Sen. Tom George would charge Medicaid patients less for services if they exercise regularly and don't smoke, and give state contracting preferences to businesses that have employee wellness programs.
Other bills would let health insurers provide better rates to small businesses that employ fewer smokers, require elementary schools to offer physical education for 30 minutes at least two days a week and establish a wellness program for state employees. Wellness programs typically offer health screenings, exercise training and nutrition advice to workers.

George, an anesthesiologist from Portage, said unhealthy behaviors are known to contribute to at least 25 percent of health care costs.

"We can't control aging of our population," he told reporters. "New medical technologies that we rely on are generally beneficial. But we can control our own behavior."

The Medicaid proposal isn't new. It stalled in budget negotiations last year, so Republicans will try to address the issue outside the budget process, George said.

The senator also proposed bills last fall that would require insurance companies and health maintenance organizations to reward people for healthy behavior, though companies wouldn't have to buy the insurance coverage. Hearings will be held on those bills in the spring, George said.

George said high health care costs contribute to the state's economic troubles.

"Our businesses, schools and local and state governments cannot keep up with the rising cost of health care," he said. "We need comprehensive state policy changes that will encourage healthy behavior."

Senate Democrats pointed out that one bill is similar to legislation they introduced a year ago. Sen. Deborah Cherry (D-Burton) is sponsoring a bill that would require elementary pupils to take part in 30 minutes of physical activity a day or 135 minutes a week.

Members of Democratic Gov. Jennifer Granholm's administration have said she is open to the idea of giving Medicaid recipients incentives to live healthier, but they have questioned the logistics.