Empowering Wisconsin’s Public Sector:
Navigating Challenges
with Strategic Benefits.
As the backbone of Wisconsin’s communities, public sector organizations are entrusted with delivering essential services. Yet, rising health insurance premiums, limited budgets and shifting employee expectations present significant challenges. Despite these pressures, you retain the power to shape your benefits strategy.
By thoughtfully adjusting plan designs, enhancing total rewards, and expanding wellness initiatives, you can manage costs effectively while continuing to attract and retain top talent. Together, we can build a benefits framework that supports both your workforce and your community’s well-being.
❯❯ Employee-Centric
Total Rewards
- 53% of public sector organizations are offering cash in lieu of health insurance, while only 6% of private sector organizations offer the same benefit.
- Retirement plans continue to be a major benefit in the public sector. 100% of public sector employees have access to a pension plan, and 55.9% offer payroll deduction for employees wishing to save in a retirement savings plan.
- Employee-paid voluntary benefits are also becoming more popular in the public sector, with 80% offering life insurance, and a growing number offering more niche coverages (short-term disability 79%, pet insurance 16%, identity theft protection 10%, long-term care insurance 11%).
| Voluntary Life Insurance | 80% |
| Identity Theft Protection | 10% |
| Short-Term Disability | 79% |
| Accident Insurance | 41% |
| Critical Illness | 41% |
| Hospital Indemnity | 33% |
| Long-Term Care | 11% |
| Pet Insurance | 16% |
| Employee Paid Benefits | |
|---|---|
❯❯ Redefining Wellbeing
- 51.9% of respondents say that they still do not offer a “formal wellbeing program” — yet, our data shows that larger percentages of public entities offer programs and policies that align with wellbeing. There is opportunity here for public sector organizations to conduct an inventory of their current benefit offerings and thoroughly identify which of these programs support wellbeing, then effectively communicate these offerings as a part of their wellness strategy.
- Most popular programs are financial programs (93.3%), flexible dress code (68.0%), on-site workout facilities (56.0%), health education (44%), on-site cafeteria (42.7%), social events (38.7%), and sit/stand workstations for everyone (32.0%).
- Public sector organizations are beginning to lean into expanded wellness benefit offerings:
- 98% offer an EAP
- 29% offer social wellbeing events
- 19% have organizational policies/procedures that support mental health
- 15% have a mental health provider onsite or offer virtual care access
- 10% offer mindfulness, yoga, and stress reduction classes
- 7% have on-site quiet/rejuvenation spaces
- Focus of wellbeing efforts is still largely physical health (91.7%); opportunities exist with financial (50.0%) and social wellness (61.1%).
Health Plan Design Trends
- Public entities are looking for ways to make benefits less expensive for their employees. One way they are doing so is by offering more choice in plan design. Choice allows employees to decide what plan works best for their budget — HDHP, PPO, etc.
- Overall, we are seeing max out-of-pocket rates going up — this is due to the addition of more plan design options for employees. With a higher max out-of-pocket rate included as a plan option, employees may experience more exposure on the back end, but have lower up-front costs.
- Single (2024: $3,315; 2025: $3,511 = 6% increase)
- Family (2024: $6,628; 2025: $7,038 = 6% increase)
- Public entities are reinvesting in their benefits to make them more enticing to potential employees. Accordingly, average deductibles have gone down a bit:
- Single (2024: $2,410; 2025: $2,370 = 2% decrease)
- Family (2024: $4,839; 2025: $4,767 = 2% decrease)
- Copays saw a bit of a shift as employers advocate for consumers to make better health care choices. For example, many public entities are utilizing communication campaigns to encourage employees to rely on their primary care provider more heavily instead of unnecessarily utilizing the emergency room.
| Field | 2025 Benchmark | 2024 |
|---|---|---|
| Office Visit | $24 (+4%) | $23 |
| Specialist Visit | $37 (+8%) | $34 |
| Emergency Room | $196 (−8%) | $180 |
| Urgent Care | $43 | $43 |
| Inpatient Care | $425 (−18%) | $500 |
| Lab | $25 | $25 |
❯❯ Plan Design as a Talent Attraction and Retention Differentiator
Public entities in Wisconsin have aggressive talent attraction and retention goals — and a talent pool that expects more than ever from their employer. Increasingly, public employers report seeing employee benefits plan design as an opportunity to recruit new and seasoned talent to their open roles.
Reach out to your M3 client executive
for more information.
m3ins.com | 800.272.2443
