Group Insurance Board Reviews Health Insurance Program

Today, the Group Insurance Board took a closer look at a comparative analysis regarding the design of the Group Health Insurance Program (GHIP). Additionally, the board has approved a premium hike for the Wisconsin Public Employers (WPE) Group Life Insurance Program.

The ETF examined the non-Medicare plan options in both public and private sectors, alongside market trends in health insurance. Their findings indicated that GHIP helps lower costs for its members while also offering better compensation. However, lower cost sharing might lead to increased health and pharmacy expenses, potentially resulting in financial strain on the program and higher overall premiums.

The ETF is exploring several strategies:

• Enhancing planning design and chronic disease management, improving health outcomes, and ensuring long-term cost sustainability.
• Tying cost sharing to service value, directing members to affordable, clinically appropriate facilities, and cutting down on unnecessary spending.
• Making sure all member populations have access, especially in rural and underserved areas.
• Maintaining benefits that support recruitment and retention in a competitive job market.
• Simplifying processes, alleviating administrative burdens, boosting operational efficiency, and improving member experiences.

In November, the ETF plans to continue discussions on planning design changes, along with more detailed recommendations and benchmarking. The board is set to approve modifications for the 2027 planned year in February.

Life Insurance Program Updates

Reflecting on the recent financial status of the WPE Group Life Insurance Program, the Board has sanctioned premium increases as recommended by actuaries from Securian:

• A 5% premium rise for the state plan, effective April 1, 2026, aimed at reinstating the program to fully funded status by 2028.
• An increase of $0.35 per spouse unit and local plan dependency coverage, moving from $1.60 to $1.95, starting July 1, 2026.

Meanwhile, the coverage for state spouse and dependency, along with local employee options, will remain unchanged.

Updates from ETF

The ETF provided various updates to the board:

• Local GHIP Initiative – ETF presented ideas for modifying local GHIP structures for better management. Next, they will seek board approval to issue requests for proposals to manage access plans and maintenance, while gathering feedback from local employers and members.
• Pre-tax Savings Account – Transitioning from Optum Financial to Total Administrative Services Corporation (TASC) is in progress, including notifying participants and preparing for the open registration.
• Quality Credit Program – Health plans show overall improvement compared to national benchmarks, though only a few plans meet all performance measures. The ETF will look into new ways to encourage measurable quality enhancements.

In July, a new insurance management system called My Insurance Benefits was successfully launched for University of Wisconsin employees. The ETF is planning to roll out this system for all state and local members, including employers and retirees, next summer.

My Insurance Benefits will provide employees with online access to vital insurance information such as health, dental, vision, accident coverage, income protection, life insurance, among others, and offer pre-tax savings accounts.

The next board meeting is scheduled for November 12, 2025.