Governor Scott Walker’s administration is urging lawmakers to reconsider their opposition to a plan to move state employees to a self-insurance model.
The move would have the state directly pay for state employees’ insurance coverage, instead of going through HMOs. Department of Administration Secretary Scott Neitzel contends it would save taxpayers at least $60 million over the next two-year budget cycle, while helping state employees avoid a 10 percent premium increase next year.
“We think this is a good, common sense government reform,” Neitzel said during a press conference at the Capitol Friday morning. “It makes sense to do this…when we have surety that we will get these savings for the taxpayers.”
Republican lawmakers have been skeptical of the promised savings though, which prompted the co-chairs of the budget-writing Joint Finance Committee to indicate earlier this month that they will likely reject the self-insurance proposal. They have also raised concerns about the impact the change could have on the state’s insurance markets.