Statement from the Wisconsin Hospital Association on Proposal to Self-fund State Employee Health Plan

Contact:       Eric Borgerding, 608-274-1820 (office)

Attribute this statement to WHA President/CEO Eric Borgerding

MADISON (January 19, 2016)  ----  “Wisconsin has a national reputation for delivering some of the highest quality, highest value health care in the nation. Similarly, Wisconsin’s current approach to state employee health insurance, which relies on competition among some of the highest performing, and Wisconsin based, health plans in the country, has a track record of strong performance.

We applaud the Governor for his commitment to innovation, reform and ongoing partnership with the health care community. However, drastically altering this successful system could result in unintended consequences for Wisconsin’s health insurance marketplace, those covered under that state insurance plan and state finances. The state's own studies of self-funding have reached differing conclusions as to its benefit, with one analysis estimating it could cost Wisconsin upwards of $100 million.

Any change of this potential magnitude warrants thorough vetting of assumptions and consideration of the risks and we look forward to working with the Governor and the Legislature to assure a complete understanding of the impact of any potential changes before the Legislature moves forward.”