WisBusiness: WPS chief slams medical fund raid

By Brian E. Clark
WisBusiness.com

James Riordan, CEO of Wisconsin Physicians Service (WPS)Insurance Corp., told a WisBusiness.com luncheon today that raiding the Injured Families and Patients Compensation Fund to balance the state budget was a mistake.

Speaking at a luncheon sponsored by WisBusiness, Madison Magazine and the Madison Club, Riordan criticized Gov. Jim Doyle and the Legislature for approving the $200 million transfer and said it may make doctors less likely to locate in Wisconsin.

Riordan also predicted that the Wisconsin Medical Society, which filed suit Oct. 29 challenging the raid, will prevail. The Wisconsin Medical Society contends the transfer is unconstitutional and will harm the state by destabilizing the fund.

Riordan, a graduate of the UW-Madison pharmacy school, has been president of WPS since the early 1990s. He spent much of his talk detailing the history of the quiet, non-profit company, which has more than 4,800 employees in several states and administers a wide range of civilian and military insurance programs.

In response to questions, he said the greatest threat to health care is continued rising cost. But thanks to the upcoming presidential election, he said the upward spiral will slow somewhat – at least until the campaigns are over.

“There is nothing controlling costs,” he said. “But the best dampener is an election year.”

He said WPS is bidding on federal contracts to administer Medicare programs. If the company is successful, he said the number of people it employees in the Madison area would grow.

Riordan said he is no fan of the government taking over management of health care.

Instead, he said he would like to see a more entrepreneurial, efficient and competitive system that emphasizes best practices and more people would purchase health insurance policies as individuals instead of groups.

There would also be more health assessment and lifestyle programs, he said. And while people would not be forced to participate, they would pay more for policies than those who do take part.

Riordan also said he is worried about the government failing to address who will pay the Medicare bills of Baby Boomers – who are now entering into their retirement years.

“There are not enough people coming behind,” he said. “It is one of the single most important issues coming up. Who will pay?”