A report issued by the state’s Group Insurance Board claims Wisconsin taxpayers could save up to $42 million a year if the state government would self-insure its employee health coverage instead of letting 18 HMOs do it.
Segal Consulting was hired to determine the fiscal implications of self-insured coverage. It recommends that the change be made gradually, and that the state would save on administrative costs, private insurance profit margins, and fees in the Affordable Care Act. The consultant also said the state would need to raise its cash reserves to pay the health claims.
The proposal affects about 209,000 active and retired state workers and their families, and 40,000 in local government.
The Assembly voted Monday to have the Legislature’s Joint Finance Committee have the final say on any changes to self-insured state plans. The bill now heads to Governor Scott Walker.