Health care experts say switching state workers to a self-insurance model could save roughly $13 million in its first year of implementation.
The amount is smaller than the state's previous estimates that boasted savings as high as $60 million within the first three years.
Idaho lawmakers have considered moving the state to a self-insurance system for several years. The topic has since become a key talking point for Republican gubernatorial candidate Tommy Ahlquist - who has pointed to the switch as a possible way to slash the state budget by $100 million.
Under such a plan, the state would pay for health insurance for about 45,600 state workers and family members directly rather than purchasing insurance through an insurance carrier.
Idaho' currently has a hybrid fully-insured plan with Blue Cross of Idaho.