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Consultant: state could save $40 million with self-insurance

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By Todd Richmond, Associated Press Madison — The state could save more than $40 million annually by moving to a self-insurance model to cover public workers' health care costs, according to a report that a consulting firm handed to the state insurance board Tuesday. Under a self-insurance model, the state would pay for benefits directly and assume the risk of cost overruns rather than purchasing insurance from 17 HMOs. The report sets the stage for a possible board vote in February on moving to such a model, a move that could reverberate across Wisconsin's health insurance markets. According to Segal Consulting's report, moving to self-insurance would eliminate the need to pay fees that the...

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