Budget Committee to Reject Governor Walker Proposal

The co-chairs of the Legislature's powerful budget committee say the panel will reject Gov. Scott Walker's plan to move the state to a self-insurance model.

Walker has included provisions in the state budget that would shift the state to self-insurance. Under such a plan, the state pays for health insurance for about 250,000 state workers and family members directly rather than purchasing insurance through HMOs. Walker believes the move would save $60 million, which he plans to invest in education. 

Walker's fellow Republicans say they're worried about the state taking on risk and whether the $60 million in savings will actually materialize.

The move is subject to approval by the Joint Finance Committee. The panel's co-chairs, Rep. John Nygren and Sen. Alberta Darling, told reporters on Tuesday that the committee will reject the idea. They say the current insurance model is working and they can find savings elsewhere.

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