MADISON, Wis. (AP) - Gov. Scott Walker is proposing switching to a self-insurance system in 2018.
He made the proposal in the state budget he delivered to the Republican-controlled Legislature on Wednesday.
Under a self-insurance system, the state would pay for benefits directly for about 250,000 state workers and family members instead of purchasing insurance from 17 HMOs. The Group Insurance Board oversees the $1.5 billion state employee insurance program. It recommended making the change just hours before Walker put it in his budget.
Walker estimates it will save $60 million over the next two years.
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