Wisconsin Department of Employee Trust Funds: GIB Reviews Preliminary Rates for 2024

MADISON, Wisconsin, July 28 -- The Wisconsin Department of Employee Trust Funds issued the following news on July 27, 2023:

The Group Insurance Board yesterday received an update on preliminary rate setting for the State of Wisconsin Group Health Insurance Program, amid rising health benefit costs. The Board also voted against offering a new pharmacy cost-savings program in 2024 and addressed other business.

The results of preliminary rate setting and contract negotiations with health plans indicate an overall 6% rate increase for medical, pharmacy, and dental coverage in 2024. In past years, the Board has been able to use the reserve to offset premium increases for members and employers. Current reserve estimates are below the Board's target range policy.

"We're committed to working with health plans to set reasonable rates for Uniform Benefits, while providing quality care, options, and access to services for members," said Eileen Mallow, director of the Office of Strategic Health Policy at the Department of Employee Trust Funds.

"It will be challenging to keep premiums low for 2024 with costs for all health care services continuing to increase," added Mallow.

The Board will set program rates for 2024 in August, prior to the annual open enrollment period, set for September 25-October 20.

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Other Business

ETF provided an update on the enacted 2023-2025 state budget and proposed legislation that affects the GHIP and ETF.

After extensive discussion about a new pharmacy cost-savings program for non-Medicare GHIP members, reviewing the impact of proposed legislation (2023 SB 100 and 2023 AB 103) and considering feedback from advocacy groups, the Board voted against offering the program in 2024.

The Board approved giving ETF authority to automatically apply the maximum contribution and carryover limits defined by the Internal Revenue Service to the Pre-Tax Savings Account Programs and the minimum deductible for the High Deductible Health Plan, effective for 2024.

The Board's next regularly scheduled meeting is August 16, 2023.

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For More Information

Group Insurance Board July 26, 2023, Meeting Agenda and Materials (https://etf.wi.gov/boards/groupinsurance/2023/07/26/agenda/download?inline=)

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Original text here: https://etf.wi.gov/news/gib-reviews-preliminary-rates-2024-0