Governor Evers Proposes Insurance Audit to Improve Wisconsin Healthcare

Thursday, February 20, 2025

Governor Tony Evers plans to audit insurance companies to tackle claim denials, aiming to reduce healthcare costs and improve accessibility in Wisconsin.

Groundbreaking Healthcare Reform Initiative

In a landmark announcement on February 19, 2025, Governor Tony Evers unveiled a comprehensive healthcare reform package as part of the 2025-27 Executive Budget, positioning Wisconsin to become the first state to systematically audit insurance companies over healthcare claim denials [1]. This pioneering initiative comes amid growing concerns about healthcare accessibility and affordability, with the proposed reforms projected to save Wisconsin residents approximately $70 million over the next two years through various cost-reduction measures [1][3].

Comprehensive Oversight and Consumer Protection

The governor’s plan includes establishing a dedicated consumer protection office to assist Wisconsinites with denied insurance claims [1]. This unprecedented move responds to alarming healthcare access issues, supported by American Medical Association data showing that over 90% of physicians report unnecessary care delays due to prior authorizations, with approximately 25% noting serious adverse health events resulting from these delays [1]. The reform package also introduces strict standards for insurance companies, requiring transparency in coverage decisions and implementing maximum wait times for medical appointments [1].

Financial Impact and Healthcare Accessibility

The broader healthcare initiative is part of a $55.5 billion state budget [4], which includes significant investments in healthcare accessibility. The plan aims to expand BadgerCare coverage to approximately 95,000 additional residents while generating substantial fiscal benefits, including $1.9 billion in state savings and securing $2.5 billion in federal funding [1][3]. The proposal also addresses prescription drug affordability through the creation of a new Prescription Drug Affordability Review Board and caps insulin copays at $35 [1].

Implementation and Future Outlook

While the proposal has garnered support from healthcare advocates, it faces potential challenges in the Republican-controlled state Legislature [2]. Assembly Speaker Robin Vos has expressed opposition to the broader budget proposal [2][4]. However, Evers remains committed to the healthcare reforms, emphasizing that ‘healthcare should not be a privilege afforded only to the healthy and wealthy’ [1]. The administration projects the state will maintain a $646.3 million surplus by June 2026 while implementing these reforms [4][alert! ‘Implementation timeline and specific audit procedures are pending legislative approval’].