Benefit changes, reserve funds not self-insurance will save $60 million, budget panel leaders...

Benefit changes, reserve funds — not self-insurance — will save $60 million, budget panel leaders say

A “modest” increase in deductibles, expanded wellness incentives and excess reserve funds could let Wisconsin save $60 million from state worker benefits without shifting to self-insurance, leaders of the state Legislature’s budget committee said Monday.

Sen. Alberta Darling, R-River Hills, and Rep. John Nygren, R-Marinette, reaffirmed their opposition to Gov. Scott Walker’s plan to move 250,000 government workers and family members away from a program in which the state pays premiums to 17 HMOs.

But the co-chairs of the Joint Finance Committee said they’re committed to finding $60 million in savings Walker counted on from self-insurance in the 2017-19 budget. One step, they said, is to tap reserves from state worker benefits — which reached $144.4 million last year, $18.4 million to $68.8 million more than the range allowed, the nonpartisan Legislative Fiscal Bureau reported last week.

“Is it because they’re overcharging?” Nygren asked at a Wisconsin Health News forum. “Are there built-in savings that are already there that aren’t being realized?”

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