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Health insurers, providers favor Wisconsin governor's $200M reinsurance plan

Wisconsin's health insurance providers, doctors and medical community have endorsed Gov. Scott Walker's $200 million plan to cut healthcare costs for people opting to buy healthcare from the private marketplace, Insurance Journal reported.

Under a state bill, Wisconsin would seek a federal waiver to offer a reinsurance program to cut premium costs. Through the program, health insurance providers would receive money from the government to pay for between 50% and 80% of medical claims ranging from $50,000 to $200,000.

Minnesota, Oregon and Alaska have similar programs.

Health consultancy Horizon Government Affairs expects rates in Wisconsin to drop 13% in 2019 and 12% in 2020 if the program is enacted, according to the report.

Walker said the state will fund $50 million of the cost through Medicaid savings, with the federal government accounting for the remaining $150 million.

The Wisconsin Association of Health Plans, the Wisconsin Medical Society, the Wisconsin Hospital Association, the Marshfield Clinic Health System and the American Lung Association in Wisconsin endorsed the plan.

But the Wisconsin Hospital Association called for a permanent source of funding instead of using unspecified Medicaid savings, Insurance Journal reported.