Governor explores self-insurance for employees - WQOW TV: Eau Claire, WI NEWS18 News, Weather, and Sports

Governor explores self-insurance for employees


MADISON (WKOW) -- Governor Scott Walker will talk with health plan executives about a proposal to shift state employees from HMO health insurance to an employer self-insured program.

Employers that are self-insured carry the risk for losses and pay benefits directly to employees. The National Conference of State Legislatures says at least 20 states have self-insurance programs for their employees. Currently, the state contracts with 18 HMOs.

The State Journal reports a consultant's analysis says the state could save 4% to 5% a year by becoming self-insured. The savings would come mostly from avoiding taxes and fees under the Affordable Care Act for fully-insured programs.

Walker will talk Tuesday with health insurance executives. A committee of the state's Group Insurance Board plans to take up the issue October11.

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