Wisconsin to tap $30 million in reserves to prevent rise in state employee heath insurance premiums

Budget committee rejected self-insurance plan by Gov. Walker 

Health insurance premiums for Wisconsin state employees are expected to remain stable next year.

The Group Insurance Board announced Wednesday that it’ll tap into almost $30 million in reserves to prevent an increase in premiums, according to the Wisconsin State Journal.

The decision comes after the Legislature’s budget committee rejected Gov. Scott Walker’s proposal to self-insure state workers in June. The committee recommended the state Department of Employee Trust Funds save $60 million over two years through benefit changes, negotiating with HMOs and program reserves.

Those changes have caused six of the 18 health plans that currently cover government workers to drop out next year. As a result about 53,000 people will have to switch to a new plan, with about 2,500 needing to find new doctors.