GREEN BAY, WI (WTAQ-WLUK) – Push back on a plan to save the state millions of dollars and self-insure its employees.
Gov. Scott Walker introduced the self-insurance plan as part of his two-year budget.
The projected savings would go to fund other parts of the budget, like education.
But some lawmakers question the savings.
At a stop in Green Bay Sunday, Governor Scott Walker tells WLUK that switching state workers to a self-insurance plan would save the state $60 million over the next two years.
“We believe conservatively $60 million and that’s money I committed a year ago, more than a year ago, would go entirely into public education and that’s what we put in this budget”
Under the plan, Walker says the state would pay for health insurance for about 250,000 state workers and family members directly. That’s opposed to buying insurance through 17 health maintenance organizations. The state would also assume the risk for medical claims.
“Almost every major private sector employer has self-insured, why do they know something that the public sector doesn’t? Because in reality, we know self-insurance works”
However, some lawmakers, like Democratic State Rep. Eric Genrich, have concerns.
“The governor has attached funding for K-12 schools, funding for the UW-System to whether or not the self-insurance plan is approved, and I think it’s inappropriate. I’m hoping that the Joint Finance Committee sees fit to disentangle those concepts and like I said let the idea rise and fall on its own”
State Rep. David Steffen is all for saving money….but he has concerns.
“I think the question is, will it actually save $60 million, it’s a lot of money, but if there is an opportunity to save that kind of money for tax payers I think we need to look at it”
Steffen says switching to self-insurance wouldn’t change people’s coverage just how it is paid for.
“So instead of an insurance company holding the money, taking the risk and then making money off it, the state is going to hold the money and transfer that savings back to the people”
Last week, Assembly Majority Leader Jim Steinke said the legislature will likely reject the plan.
