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Department of Employee Trust Funds
November 30, 2016

GIB Selects Data Warehousing Vendor,
Deliberates Program Changes

The Group Insurance Board (GIB) selected Truven Health Analytics as the data warehousing vendor for the State of Wisconsin Group Health Insurance Program at its meeting today. Contract negotiations are targeted to be finalized in early 2017.

The GIB also reviewed proposals for health insurance program structural changes in 2018 and approved a two-year contract extension with Delta Dental to administer the Uniform Dental benefit through December 31, 2019.

Health Insurance Program Structural Changes
A broad range of options were presented to the GIB, ranging from maintaining the current program structure to contracting with one statewide vendor on a self-insured basis, as well as various regional scenarios.

Lisa Ellinger, Director of the Office of Strategic Health Policy, provided an overview of the current program and ETF’s analysis of the impact of self-insuring and/or regionalization. The board’s consulting actuary, Segal Consulting (Segal), gave an analysis of vendor proposals, including projected costs and savings, provider access, and possible health plan disruption associated with different scenarios.

“The primary goal was to provide the board a detailed analysis of the key benefits and challenges associated with each option for the long-term sustainability and strategic goals of the health insurance program,” said Ellinger.

Due to confidential and proprietary information presented, the GIB deliberated in closed session. The board provided feedback and directed ETF to work with Segal to develop recommendations for board action on December 13.

January 2018 is the earliest any program structural changes would take effect. Benefit or plan design changes are not being discussed in this process.

Earlier this year, the GIB made the decision to explore self-insurance. ETF released a request for proposals (RFP) in July. Submitted proposals were reviewed and scored by two evaluation teams.

One team, comprised of ETF staff members and external subject matter experts, evaluated the general and technical questionnaires and consulted with information technology and finance specialists as needed. The other team was comprised of Segal experts who evaluated the cost, data and network access portions of the proposals.

The GIB must also consider how changes will affect the Wisconsin Public Employers Group Health Insurance Program (local program), the Medicare coordinated program, the currently self-insured It’s Your Choice Access Plan (formerly known as the Standard Plan) and the Local Annuitant Health Program.

Any new contracts to self-insure with third-party administrators must be sent to the Joint Committee on Finance (JCF) for review, as required by 2015 Act 119. The JCF has the authority to either deny the contract(s) or take no action; the latter would allow the process to continue.

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