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
The report concluded by stating that, depending on the policy decisions
being made, state laws may first have to be amended.