Consultant recommends state move to self-insurance model

MADISON — A consulting firm says the state should phase in a self-insurance model for health care for public workers.

Segal Consulting presented a report to the state Group Insurance Board on Tuesday saying moving to a self-insurance model would save the state about $42 million annually. The report noted switching to self-insurance would improve transparency and flexibility in benefit design. The report added that a vast majority of other states use a self-insurance model.

The report recommends phasing in self-insurance beginning in 2016 in preparation for 2017 plan renewals.

Under the self-insurance model, the state would pay benefits directly instead of buying insurance from 18 HMOs.

The Legislature has passed a bill that would give the Joint Finance Committee the final say on any contract moving Wisconsin into such a model.