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Governor explores self-insurance for employees

8:58 AM, Oct. 1, 2013  |  Comments
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MADISON, Wis. (AP) - 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 (http://bit.ly/17lyHo8 ) reports a consultant's analysis says 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.

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Information from: Wisconsin State Journal, http://www.madison.com/wsj

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