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Walker Administration Continues Pushing Self-Insurance For State Employees

Republican Lawmakers Have Said They Will Reject Self-Insurance

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Hospital
David Goldman/AP Photo

The Walker administration continued its push Friday for moving state employees to self-insurance, despite Republican lawmakers saying they plan to reject the change.

Administration officials say health care premiums under the current system are now projected to increase more than expected in 2018.

Those premium estimates, made by the state, are based on trend and claims data reported by current health plans, officials said. They predict premiums will rise by at least 10 percent.

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Wisconsin Department of Administration Secretary Scott Neitzel said the new numbers should make lawmakers reconsider their positions on making the switch to self-insurance.

“We think these numbers are compelling, so compelling that we want to make sure that everybody has them as the Legislature moves to make a decision on this very important public policy issue,” Neitzel said Friday. “As we have said in the past, we think this is a good, common sense government reform that saves the state taxpayers at least $60 million over the course of the next biennium.”

Republican lawmakers on the state budget committee have said the plan reject the change. They argue it’s too risky, and that the system is working well now.

The Walker administration projected $60 million in savings from moving to self-insurance in the next state budget. Lawmakers say they can find those savings elsewhere.

The change would effect about 250,000 workers.