GIB votes to self-fund and regionalize health plan
The Group Insurance Board voted 10 to 1 to self-fund and regionalize the health plan for state and local employees at a meeting Wednesday. They estimate the move would save more than $60 million over the 2017-2019 biennium.
An additional $30 million in fees under the federal health reform law could be avoided by moving to a self-funded regionalized model. GIB gave the Department of Employee Trust Funds the power to enter into contract negotiations to move to a self-funded health plan effective Jan. 1, 2018.
Compcare Health Services Insurance Corp., run by Anthem Blue Cross and Blue Shield in Wisconsin, will serve as the third party administrator for a statewide option.
Security Administrative Services will serve the northern region of the state. Compcare and Network Health Administrative Services will serve the eastern part of the state.
Dean Health Plan and Quartz will cover the southern part of the state. HealthPartners Administrators Inc. will cover the western region.
The contracts will be for three years. They are subject to Joint Finance Committee approval.
