Governor Signs Wisconsin Health Insurance Oversight Bill

Gov. Scott Walker has signed a bill that gives the Legislature’s budget committee oversight of any contract moving Wisconsin public workers into a self-insurance system.

The governor signed the bill privately on Dec. 16.

The measure comes as Walker’s administration considers adopting a self-insurance model, a change that could reshape health insurance for about 240,000 public employees, their families and retirees.

Under a self-insurance model, the state would pay for benefits directly and assume the risk of cost overruns rather than purchase insurance from 17 HMOs. The state insurance board could vote as early as February on moving to such a model.

The leaders of the budget committee argue they should have oversight of such a move because it would have far-reaching consequences for Wisconsin’s insurance markets.