State workers and their family members would see their main out-of-pocket health care costs double next year under proposed budget cuts officials will take up Tuesday.
The state Department of Employee Trust Fund’s Group Insurance Board is expected to vote on the proposal, which would satisfy requested cuts to worker benefits in Gov. Scott Walker’s proposed budget.
The changes, which include increases in co-payments, deductibles and drug costs, could help the state avoid an Affordable Care Act “Cadillac tax” beginning in 2018, officials said.
However, the proposal would also introduce an aspect of the federal health law that was so controversial it was dropped: consultations about end-of-life care, which some called “death panels.”
Self insurance, a controversial model in which the state would pay benefits directly instead of buying insurance from 18 HMOs, is not part of the proposal, but it is being considered for 2017.
The changes to be considered Tuesday would cut $85 million over two years from the $1.4 billion health insurance program that covers 240,000 state workers and family members, most of whom live in Dane County.
Workers’ premiums, as a percentage of overall health care costs, would not change.
But co-payments, deductibles and out-of-pocket limits would go up, resulting in a doubling of those costs for nearly all state workers, according to Segal Consulting, an Atlanta-based firm hired by the state. Those costs, however, would remain among the lowest in the region, Segal said.