Industry group wary of potential for state self-insurance plan

The Wisconsin Association of Health Plans is warning that shifting state workers to a self-insurance plan “is not the right answer for Wisconsin.”

The association, which represents some of the health plans the state works with on its current fully-insured program, said any changes to that program “must be considered carefully,” as they might disrupt the state’s “vibrant health insurance market.”

Segal Consulting submitted a report Tuesday to the state’s Group Insurance Board saying the move would save the state $42.1 million.

A spokeswoman for Gov. Scott Walker said the report warrants “continued review” given the potential savings.

“Our focus remains on continuing to provide the same great benefits to state employees at a good value to our state’s taxpayers,” Laurel Patrick wrote in an email. “We will thoroughly review the recommendations included in the report.”

But the association panned the idea.

“It will create disruption and instability in local markets, limit the ability of state employees to choose their own doctors and place the state at greater financial risk by turning fixed costs into variable and unexpected costs,” CEO Nancy Wenzel said. “Further, self-funding would require more government involvement at a time when citizens want less government.”

See the statement

See the Segal Consulting report

— By Polo Rocha
WisBusiness.com