And shockingly, the insurance providers who currently receive taxpayer money to support state employees are claiming that the move will result in gloom and doom.
The Group Insurance Board will vote on the matter in November.
Currently, nearly all of the workers and dependents, almost 100,000 of whom are in Dane County, are covered by 17 HMOs, which receive premiums and accept the risk for claims.
Under self-insurance, the state would pay benefits directly and take on the risk.
Consultants have said the move could cost $100 million a year or save $42 million, largely by avoiding $18 million in Affordable Care Act fees, cutting $11 million in administrative costs and eliminating $11 million in insurance company profits.
Gov. Scott Walker said any savings would be used on public education.
While self insurance might indeed lower costs, the real thing to watch is which company the Governor selects to manage the insurance. It would not be surprising that it or its ownership have donated to his campaign.