A consultant says it’s not feasible to move to a self-insurance model for Wisconsin state employees next year.
The Wisconsin State Journal reports that the consultant’s report found moving from a competitive HMO model to self-insurance could save the state $50 million to $70 million a year beginning in 2017.
The report by Atlanta-based Segal Consulting was submitted on March 25 to the state Department of Employee Trust Fund’s Group Insurance Board meeting.
The report recommends introducing deductibles for state workers, increasing out-of-pocket maximums, charging more for brand-name drugs and other changes that could save at least $42 million next year.
The $1.4 billion state worker health insurance program covers 240,000 workers and family members. Gov. Scott Walker’s proposed budget calls for cutting $25 million over two years.
Topics Wisconsin
Was this article valuable?
Here are more articles you may enjoy.
Uncertainty Keeps Prices Up; No Prior-Year Loss Development: Travelers 
AIG General Insurance Chairman McElroy to Retire May 1 
How California’s Huge Raises for Fast-Food Workers Will Ripple Across Industries 
Coral Gables, Florida Tops Beverly Hills as Ritziest Home Market in US 
