Budget committee plans to reject governor’s self-insurance proposal

May 09--The Legislature's budget committee plans to reject Gov. Scott Walker's proposal to self-insure state employees, but find other ways to save $60 million under the existing system.

Rep. John Nygren, R-Marinette, said the committee isn't saying "no" to savings, but that there may be two areas to squeeze savings out of the existing system -- health insurance plans that promote employee wellness and less expensive health insurance plans.

"We may not be the healthiest group in the world (and) we have a very rich plan design," Nygren said. "If we're looking at getting at the true cost, that is a direction for us to look for true savings."

Sen. Alberta Darling, R-River Hills, noted premium increases for Wisconsin's employee health insurance plans have been lower than in other states.

"Why would we want to shift out of that into uncertainty at this point?" Darling asked.

Gov. Scott Walker had proposed shifting the state to a self-insurance model where the state would contract with six health insurance companies to pay medical claims for 250,000 workers and family members directly -- and take on the financial risk for large claims -- instead of paying premiums to 17 HMOs, which currently accept the risk.

Republican lawmakers had previously expressed reservations about Walker's proposal.

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