Ins 3.375(6)(b)2.b.
b. The insurer shall be responsible for all expenses related to the actuarial cost increase determination and certification.
Ins 3.375(6)(b)2.c.
c. The insurer shall provide a copy of the actuary's determination to an employer within 15 days of the employer's request. The insurer shall provide a date on which the actuarial determination will be available annually. The insurer shall maintain the actuarial determination and underlying documentation for a period of not less than five years and in accordance with
s. Ins 6.80.
Ins 3.375(6)(c)
(c)
Prior and succeeding insurers. During the first year after an employer changes insurers offering group health benefit plans, the succeeding insurer shall accept as accurate and may rely upon the prior insurer's determination of eligibility for cost exemption. A succeeding insurer shall provide the prior insurer's calculation to the employer following a timely request for purposes of calculating the employer's eligibility for a cost exemption.
Ins 3.375(6)(d)
(d)
Notice of election. An insurer offering a group health benefit plan or a self-insured governmental health plan shall provide the applicable notice to the employer who qualifies for and elects an increased cost exemption under s.
632.89 (3c), Stats. The insurer shall inform the employer to notify promptly all enrollees under the plan of the exemption not to exceed 30-days following the cost increase determination and exemption election.
Ins 3.375(6)(d)1.
1. The notice shall be in substantially the form outlined in Appendix 2, using a standard typeface with at least a 10-point font, indicating the exemption election and that the plan will comply with benefit coverage requirements contained in s.
632.89 (2), 2007 Stats.
Ins 3.375(6)(d)2.
2. The notice shall be provided to each plan enrollee in either electronic or paper form.
Ins 3.375(6)(d)3.
3. The notice shall also be posted in a prominent position in each workplace of the employer.
Ins 3.375(7)(a)(a)
Employer request. An employer having fewer than 10 eligible employees on the first day of the plan year may elect an exemption from compliance with s.
632.89, Stats. An insurer offering a group health benefit plan or self-funded government plan shall inform the employer that in lieu of those requirements, the plan may cover benefits for nervous and mental disorders and substance use disorders in accordance with the requirements contained in s.
632.89 (2), 2007 Stats.
Ins 3.375(7)(b)
(b)
Notice of election. An insurer offering a group health benefit plan or a self-insured governmental health plan shall provide the applicable notice to the employer who qualifies for and elects the small employer exemption under s.
632.89 (3f), Stats. The insurer shall inform the employer to notify promptly all enrollees under the plan of the exemption not to exceed 30 days from the employer's determination to elect exemption. The notice shall comply with all of the following:
Ins 3.375(7)(b)1.
1. The notice shall be in substantially the form outlined in Appendix 1, using a standard typeface with at least a 10-point font, indicating the exemption election and that the plan will cover benefits for nervous and mental disorders and substance use disorders in accordance with the requirements contained in s.
632.89 (2), 2007 Stats.
Ins 3.375(7)(b)2.
2. The notice shall be provided to each plan enrollee in either electronic or paper form.
Ins 3.375(7)(b)3.
3. The notice shall be posted in a prominent position in each workplace of the employer.
Ins 3.375 History
History: EmR1043: emerg. cr., eff. 11-29-10;
CR 10-149: cr.
Register June 2011 No. 666, eff. 7-1-11.
Ins 3.375 Appendix 1
Small Employer Notice of the Plan's Election of Exemption from Mental Health and Substance Use Disorder Parity for [This Plan Year]
You are receiving this notice as an employee of [name of employer group]. This notice is to inform you that [name of employer group] qualifies and elects to be exempt from the state nervous and mental disorders and substance use disorders coverage parity requirements for this plan year, beginning [insert date of the first day of the plan year]. The employer is eligible to elect this exemption based upon having fewer than 10 eligible employees. Benefits may change as of [insert the date of the first day of the plan year].
Despite the exemption from the state nervous and mental disorders and substance use disorders coverage requirements, state law requires [name of employer group] to comply with the minimum mandated coverage requirements and limitations contained in s.
632.89 (2), 2007 Stats., for treatment services for nervous and mental disorders and substance use disorders.
For this plan year, your plan provides the following coverage related to nervous and mental disorders and substance use disorders:
[Insert plain language benefits summary]
Carefully review your health plan's benefits, limitations, and exclusions for detailed information on services and coverage available to you and your family this plan year. If you have additional questions please contact [insert contact name, phone number and e-mail address if available].
Ins 3.375 Appendix 2
Group Health Benefit Plan Notice of Election of Exemption from Mental Health and Substance Use Disorder Parity for [This Plan Year]
You are receiving this notice as an employee of [name of employer group]. This notice is to inform you that [name of employer group] qualifies and elects to be exempt from the state nervous and mental disorders and substance use disorders coverage parity requirements for this plan year, beginning [insert date of the first day of the plan year].
A group health benefit plan may elect to be exempt from mental health and substance use disorder parity if there are increases in the employer's total cost of coverage for the treatment of physical conditions and nervous and mental disorders and substance use disorders by a percentage that exceeds either two percent (2%) in the first plan year in which the nervous and mental disorders and substance use disorders coverage requirements apply or one percent (1%) in any plan year after the first plan year in which the requirements apply. Benefits may change as of [insert the date of the first day of the plan year].
Despite the exemption from the state nervous and mental disorders and substance use disorders coverage requirements, state law requires [name of employer group] to comply with the minimum mandated coverage requirements and limitations contained in s.
632.89 (2), 2007 Stats., for treatment services for nervous and mental disorders and substance use disorders.
For this plan year, your plan provides the following coverage related to nervous and mental disorders and substance use disorders:
[Insert plain language benefits summary]
Carefully review your health plan's benefits, limitations, and exclusions for detailed information on services and coverage available to you and your family this plan year. If you have additional questions please contact [insert contact name, phone number and e-mail address if available].
Ins 3.38
Ins 3.38 Coverage of newborn infants. Ins 3.38(2)(a)(a) Coverage of each newborn infant is required under a disability insurance policy if:
Ins 3.38(2)(a)1.
1. The policy provides coverage for another family member, in addition to the insured person, such as the insured's spouse or a child, and
Ins 3.38(2)(a)2.
2. The policy specifically indicates that children of the insured person are eligible for coverage under the policy.
Ins 3.38(2)(b)
(b) Coverage is required under any type of disability insurance policy as described in
par. (a), including not only policies providing hospital, surgical or medical expense benefits, but also all other types of policies described in
par. (a), including accident only and short term policies.
Ins 3.38(2)(c)
(c) The benefits to be provided are those provided by the policy and payable, under the stated conditions except for waiting periods, for children covered or eligible for coverage under the policy.
Ins 3.38(2)(d)
(d) Benefits are required from the moment of birth for covered occurrences, losses, services or expenses which result from an injury or sickness condition, including congenital defects and birth abnormalities of the newborn infant to the extent that such covered occurrences, losses, services or expenses would not have been necessary for the routine postnatal care of the newborn child in the absence of such injury or sickness. In addition, under a policy providing coverage for hospital confinement and/or in-hospital doctor's charges, hospital confinement from birth continuing beyond what would otherwise be required for a healthy baby (e.g. 5 days) as certified by the attending physician to be medically necessary will be considered as resulting from a sickness condition.
Ins 3.38(2)(e)
(e) If a disability insurance policy provides coverage for routine examinations and immunizations, such coverage is required for covered children from the moment of birth.
Ins 3.38(2)(f)
(f) An insurer may underwrite a newborn, applying the underwriting standards normally used with the disability insurance policy form involved, and charge a substandard premium, if necessary, based upon such underwriting standards and the substandard rating plan applicable to such policy form. The insurer shall not refuse initial coverage for the newborn if the applicable premium, if any, is paid as required by s.
632.895 (4) (c), Stats. Renewal coverage for a newborn shall not be refused except under a policy which permits individual termination of coverage and only as such policy's provisions permit.
Ins 3.38(2)(g)
(g) An insurer receiving an application, for a policy as described in
par. (a) providing hospital and/or medical expense benefits, from a pregnant applicant or an applicant whose spouse is pregnant, may not issue such a policy to exclude or limit benefits for the expected child. Such a policy must be issued without such an exclusion or limitation, or the application must be declined or postponed.
Ins 3.38(2)(h)
(h) Coverage is not required for the child born, after termination of the mother's coverage, to a female insured under family coverage who is provided extended coverage for pregnancy expenses incurred in connection with the birth of such child.
Ins 3.38(2)(j)
(j) Policies issued or renewed on or after November 8, 1975, and before May 5, 1976, shall be administered to comply with
s. 204.325, Stats., contained in
chapter 98, Laws of 1975. Policies issued or renewed on or after May 5, 1976, and before June 1, 1976, shall be administered to comply with s.
632.895 (5), Stats., contained in
chapter 224, Laws of 1975. Policies issued or renewed on or after June 1, 1976, shall be amended to comply with the requirements of s.
632.895 (5), Stats.
Ins 3.38 History
History: Cr.
Register, February, 1977, No. 254, eff. 3-1-77; reprinted,
Register, April, 1977, No. 256, to restore dropped text; corrections in (1) (intro.), (i) and (j), made under s. 13.93 (2m) (b) 7., Stats.,
Register, April, 1992, No. 436; correction in (1) (f) made under s. 13.93 (2m) (b) 7., Stats.,
Register, June, 1994, No. 462.
Ins 3.39
Ins 3.39
Standards for disability insurance sold to the Medicare eligible. Ins 3.39(1)(a)(a) This section establishes requirements for health and other disability insurance policies or certificates primarily sold to Medicare eligible persons. Disclosure provisions are required for other disability policies or certificates sold to Medicare eligible person because such policies or certificates frequently are represented to, and purchased by, the Medicare eligible as supplements to Medicare products, including Medicare Advantage and Medicare Prescription Drug plans.
Ins 3.39(1)(b)
(b) This section seeks to reduce abuses and confusion associated with the sale of disability insurance to Medicare eligible persons by providing reasonable standards. The disclosure requirements and established benefit standards are intended to provide to Medicare eligible persons guidelines that they can use to compare disability insurance policies and certificates and to aid them in the purchase of policies and certificates intended to supplement Medicare and Medicare Advantage plans that are suitable for their needs. This section is designed not only to improve the ability of the Medicare eligible consumer to make an informed choice when purchasing disability insurance, but also to assure the Medicare eligible persons of this state that the commissioner will not approve a policy or certificate as "Medicare supplement" or as a "Medicare replacement" unless it meets the requirements of this section.
Ins 3.39(1)(c)
(c) Any disability insurance policy or certificate that is designed to reduce or eliminate gaps arising from the coverages in a Medicare Advantage or Medicare Part D Prescription Drug plan shall comply with this section, and pursuant to s. 104 (c) of Medicare Improvements for Patients and Providers Act of 2008 (MIPPA) (
42 U.S.C. 1302,
1395w-101 et. seq.), policies and certificates that are advertised, marketed or designed primarily to cover out-of-pocket costs under Medicare Advantage plans shall comply with Medicare supplement requirements of s. 1882 (o) the federal Social Security Act (
42 U.S.C. Section 1395 et. seq.).
Ins 3.39(1)(d)
(d) Wisconsin statutes interpreted and implemented by this rule are ss.
185.983 (1m),
600.03,
601.01 (2),
609.01 (1g) (b),
625.16,
628.34 (12),
628.38,
631.20 (2),
632.73 (2m),
632.76 (2) (b),
632.81,
632.895 (6) and
(9), Stats.
Ins 3.39(2)
(2) Scope. This section applies to individual and group disability policies sold, delivered or issued for delivery in Wisconsin to Medicare eligible persons as follows:
Ins 3.39(2)(a)
(a) Except as provided in
pars. (d) and
(e), this section applies to any group or individual Medicare supplement policy as defined in s.
600.03 (28r), Stats., or any Medicare replacement policy as defined in s.
600.03 (28p) (a) and
(c), Stats., including:
Ins 3.39(2)(a)1.
1. Any Medicare supplement policy or Medicare replacement policy issued by a voluntary sickness care plan subject to
ch. 185, Stats.;
Ins 3.39(2)(a)2.
2. Any certificate issued under a group Medicare supplement policy or group Medicare replacement policy;
Ins 3.39(2)(a)3.
3. Any individual or group policy sold in Wisconsin predominantly to individuals or groups of individuals who are 65 years of age or older which offers hospital, medical, surgical, or other disability coverage, except for a policy which offers solely nursing home, hospital confinement indemnity, or specified disease coverage; and
Ins 3.39(2)(a)4.
4. Any conversion contract offered to a Medicare eligible person, if the prior individual or group policy includes no provision inconsistent with the requirements of this section.
Ins 3.39(2)(a)5.
5. Any individual or group policy or certificate sold in Wisconsin to persons under 65 years of age and eligible for medicare by reason of disability which offers hospital, medical, surgical or other disability coverage, except for a policy or certificate which offers solely nursing home, hospital confinement indemnity or specified disease coverage.
Ins 3.39(2)(b)
(b) Except as provided in
pars. (d) and
(e),
subs. (9) and
(11) apply to any individual disability policy sold to a person eligible for Medicare which is not a Medicare supplement or a Medicare replacement policy as described in
par. (a).
Ins 3.39(2)(c)1.
1. Any conversion policy which is offered to a person eligible for Medicare as a replacement for prior individual or group hospital or medical coverage, other than a Medicare supplement or a Medicare replacement policy described in
par. (a); and
Ins 3.39(2)(c)2.
2. Any individual or group hospital or medical policy which continues with changed benefits after the insured becomes eligible for Medicare.
Ins 3.39(2)(d)1.
1. A group policy issued to one or more employers or labor organizations, to the trustees of a fund established by one or more employers or labor organizations, or a combination of both, for employees or former employees or both, or for members or former members or both of the labor organizations;
Ins 3.39(2)(d)3.
3. Individual or group hospital, surgical, medical, major medical, or comprehensive medical expense coverage which continues after an insured becomes eligible for Medicare; or
Ins 3.39(2)(d)4.
4. A conversion contract offered to a Medicare eligible person as a replacement for prior individual or group hospital, surgical, medical, major medical, or comprehensive medical expense coverage, if the prior policy includes provisions which are inconsistent with the requirements of this section.
Ins 3.39(2)(e)1.
1. A policy providing solely accident, dental, vision, disability income, or credit disability income coverage; or
Ins 3.39(2)(f)
(f) This section may be enforced under ss.
601.41,
601.64,
601.65, Stats., or
ch. 645, Stats., or any other enforcement provision of chs.
600 to
646, Stats., or Wisconsin Administrative Code Insurance chapters.
Ins 3.39(3)
(3) Definitions. In this section and for use in policies or certificates:
Ins 3.39(3)(a)
(a) "Accident," "Accidental Injury" or "Accidental Means" shall be defined to employ "result" language and shall not include words that establish an accidental means test or use words such as "external, violent, visible wounds" or similar words of description or characterization.
Ins 3.39(3)(a)1.
1. The definition shall not be more restrictive than the following: "Injury or injuries for which benefits are provided" means accidental bodily injury sustained by the insured person that is the direct result of an accident, independent of disease or bodily infirmity or any other cause, and occurs while insurance coverage is in force."
Ins 3.39(3)(a)2.
2. The definition may provide that injuries shall not include injuries for which benefits are provided or available under any workers' compensation, employer's liability or similar law or motor vehicle no-fault plan, unless prohibited by law.
Ins 3.39(3)(c)1.
1. In the case of an individual Medicare supplement or Medicare replacement policy, the person who seeks to contract for insurance benefits.
Ins 3.39(3)(c)2.
2. In the case of a group Medicare supplement policy, the proposed certificateholder.
Ins 3.39(3)(ce)
(ce) "Balance bill" means seeking: to bill, charge, or collect a deposit, remuneration or compensation from; to file or threaten to file with a credit reporting agency; or to have any recourse against an enrollee or any person acting on the enrollee's behalf for health care costs for which the enrollee is not liable. The prohibition on recovery does not affect the liability of an enrollee for any deductibles, coinsurance or copayments, or for premiums owed under the policy or certificate.
Ins 3.39(3)(cs)
(cs) "Bankruptcy" means when a Medicare Advantage organization that is not an issuer has filed, or has had filed against it, a petition for declaration of bankruptcy and has ceased doing business in the state.
Ins 3.39(3)(d)
(d) "Benefit period," or "Medicare benefit period" shall not be defined more restrictively than as defined in the Medicare program.
Ins 3.39(3)(e)
(e) "CMS" means the Centers for Medicare & Medicaid Services.
Ins 3.39(3)(f)
(f) "Certificate" means any certificate delivered or issued for delivery in this state under a group Medicare supplement policy.
Ins 3.39(3)(g)
(g) "Certificate form" means the form on which the certificate is delivered or issued for delivery by the issuer.
Ins 3.39(3)(h)
(h) "Continuous period of creditable coverage" means the period during which an individual was covered by creditable coverage, if during the period of the coverage the individual had no breaks in coverage greater than 63 days.
Ins 3.39(3)(i)1.1. "Creditable coverage" means with respect to an individual, coverage of the individual provided under any of the following:
