Gov. 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 reported a consultant's analysis said the state could save 4 percent to 5 percent 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 Oct. 11.