On a vote of 9–2, Wisconsin’s Department of Employee Trust Funds’ Group Insurance Board decided to implement health care deductibles and increase maximum out-of-pocket payments for state employees. The move is expected to save $85 million over the next two years.
The Board was reacting to a call from Gov. Scott Walker to reduce health care coverage costs by $81 million in his proposed state budget. He suggested they work with a New York-based consulting company, which recommended the following:
- Adding deductibles of $250 per single employee, or $500 for a family;
- Doubling maximum annual out-of-pocket payments to $1,000 for a single worker and $2,000 for families;
- Increased out-of-pocket costs for prescription drugs; and
- A fixed, $15 copay per primary care visit. Currently, employees pay 10% of the cost of the primary care visits.
About 240,000 state employees and their families or dependents will be affected.
