University of Wisconsin–Madison

Self-insurance included in state budget proposal

The Group Insurance Board (GIB) voted to move Wisconsin to a self-insured health insurance model for state workers effective Jan. 1, 2018. The GIB projects this move to save $60 million over the next two years while providing the same level of benefits to employees and retaining access to 98 percent of our current medical providers. Gov. Scott Walker’s 2017-2019 proposed budget incorporates the anticipated savings. The proposed change still requires approval by the State Legislature.

Self-insurance is a way to finance employer health insurance programs. Instead of the state paying health insurance companies a fixed amount for employee health insurance, ETF would maintain funds in a reserve to pay individual health care claims. Currently, we have three self- insured benefit programs – Uniform Dental Benefits, pharmacy benefits and our Access health insurance plan.

As we learn more details about this new program, we will continue to provide updates to you. We encourage you to view an ETF video explaining self-insurance. An FAQ on the proposal is available here.