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Department of Employee Trust Funds
February 19, 2014

GIB Reviews Joint Report

The Group Insurance Board today reviewed a joint report of the Department of Employee Trust Funds (ETF) and the Office of State Employment Relations (OSER) on health reimbursement accounts (HRAs) and health savings accounts (HSAs).

2013 Wisconsin Act 20 (the state budget):

  • Required the Group Insurance Board to offer a high-deductible health insurance plan (HDHP) and an HSA to state employees beginning January 1, 2015 and at the same time.
  • Directed the two state agencies to study the feasibility and cost effectiveness of offering HRAs compared to HSAs.

The findings were presented to the Governor and Joint Committee on Finance on January 31, 2014.

The report noted key differences between HRAs and HSAs, and said “any recommendation for which option is preferable depends upon the public policy goals being sought.” In addition, “key considerations include the employees’ interests and the employer’s interests…as well as the impact on the current group health insurance program.”
The report concluded by stating that, depending on the policy decisions being made, state laws may first have to be amended.


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