Consultant: Self-Insurance for Wisconsin State Employees Premature

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.