Source: The Cap Times

The state's health care program for public employees could face changes, pending the results of a study conducted by an Atlanta-based consultant.

Gov. Scott Walker's administration has contracted with the Segal Co. to study potential cost-cutting changes to the state's health insurance plans, including moving to a self-insured coverage program, the Milwaukee Journal Sentinel reported Wednesday.

That news came the same day the conservative MacIver Institute and National Center for Policy Analysis presented a report calling for changes to the state's health care benefit program for public retirees, based on the strengths of the state's pension fund.

The think tanks offered recommendations for both the pension system and the state's post-employment health benefit program. Their health coverage recommendations included higher premiums for retirees, closing the current program to future employees and those below age 45 and shifting those employees to a pre-funded plan, particularly one with a health savings account.

Asked about the MacIver and NCPA suggestions, Walker spokeswoman Laurel Patrick said in an email that the governor's priority is to continue to provide high-quality benefits at a good value to both current and retired state employees.

"According to PEW, Wisconsin is the only state in the nation with a fully funded pension system and the only state rated a solid performer in both pension and OPEB liabilities that include retiree health insurance," Patrick said. "Governor Walker will continue to look at ways to control costs and provide quality care."

The Segal study will explore several potential changes with the goal of saving taxpayers money on health coverage for state employees. One such change a shift away from private health maintenance organizations was floated by Walker last year, but no decision was reached.

Under the current model, state employees choose between private HMOs, which forces competition in the marketplace. Under a self-insured model, the state would pay benefits directly and assume the risk for losses rather than paying premiums to HMOs.

The study will take a broader focus than assessing the move to self-insurance, unlike two previous studies conducted by the consulting firm Deloitte.

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