Wisconsin Health Insurer Drops Coverage for Thousands After Rate Increase Denied

Group Health Cooperative of Eau Claire, Wis., will be dropping its health coverage for state workers in seven area counties because it says it would have lost $12 million under the current contract terms, according to a WQOW report.

Group Health asked for a 13-percent premium increase for the upcoming year from the department that handles health benefits for state workers, but it was only approved for a 1.4-percent increase, the report said. Group Health CEO Pete Farrow said the insurance provider has paid more in claims than it has received in premiums the past few years, resulting in millions of dollars lost.

This change will take effect Jan. 1, 2012, and will affect roughly 10,000 state employees.

Related Articles on State Health Insurance:

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