Update on Group Health Insurance

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Update on Group Health Insurance

As you may be aware, the Group Insurance Board (GIB) voted to adopt a self-insured health insurance model for state workers effective January 2018. Under the self-insured model, the department of Employee Trust Funds (ETF) would hold health insurance funds in a reserve to pay individual health care claims instead of paying health insurance companies a fixed dollar amount for employee health insurance. ETF has developed a 5 minute video that helps explain the self-insurance concept: The proposed self-insured funding model requires approval by the State Legislature.

Why the change?
The Board’s decision was based on a potential taxpayer savings of an estimated $60 million over the 2017-2019 biennium, with additional savings predicted in future years. The self-insured model will provide the same level of benefits to employees, while retaining access to 98% of current plan providers, according to the Board’s consulting actuary.

Will my health insurance premiums increase?
At the moment, we do not have any information on how this change will impact insurance premiums. Premium determinations are decided in the fall.

How can I learn more?
For more information on coverage areas, providers and an action step timeline, please visit:

We will communicate with you as we have more information available on changes in premiums, if any, plan design and coverage.


Gau, Julie
Human Resources & Diversity

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