(m) A proposed draft of a letter of credit, if the provider intends to use one as part of the initial funding except for affiliated health care providers who are prohibited from using a letter of credit for initial funding.
Section 4. Ins 17.50 (6) (title), (c) (intro.) and 1., (d) are amended to read:
17.50 (6) Funding requirements for providers.
17.50 (6) (c) For self-insured plans except a self-insured plan for affiliated health care providers, the provider shall provide all of the following:
1. If the actuarial estimate under sub. (4) (d) is less than $2,000,000, the provider shall, before the self-insured plan begins operation, deposit in the trust cash equal to the first year's estimated liabilities plus a letter of credit equal to the difference between the cash funding and $2,000,000 except as provided under sub. (4) (m). Section 5. Ins 17.50 (6m) is created to read:
17.50 (6m) Funding requirements for affiliated health care providers. (a) The minimum initial funding required for a self-insured plan is the greater of $2,000,000 or the actuarial estimate under sub. (4) (d).
Section 6. These changes will take effect on the first day of the month after publication, as provided in s. 227.22 (2) (intro.), Stats.
Office of the Commissioner of Insurance
Private Sector Fiscal Analysis
for Section Ins 17.50 relating to self-insured plans covering health care providers subject to ch. 655, Wis. Stat., Modify or cut any of the following
Statute Involved: s. 227.14(4) FISCAL ESTIMATES. (a) An agency shall prepare a fiscal estimate for each proposed rule before it is submitted to the legislative council staff under s. 227.15. (b) The fiscal estimate shall include [1] the major assumptions used in its preparation and [2] a reliable estimate of the fiscal impact of the proposed rule, including:
1. The anticipated effect on county, city, village, town, school district, technical college district and sewerage district fiscal liabilities and revenues.
2. A projection of the anticipated state fiscal effect during the current biennium and a projection of the net annualized fiscal impact on state funds.
3. For rules that the agency determines may have a significant fiscal effect on the private sector, the anticipated costs that will be incurred by the private sector in complying with the rule.
(c) If a proposed rule interpreting or implementing a statute has no independent fiscal effect, the fiscal estimate prepared under this subsection shall be based on the fiscal effect of the statute.
(d) If a proposed rule is revised so that its fiscal effect is significantly changed prior to its issuance, an agency shall prepare a revised fiscal estimate before promulgating the rule. The agency shall give notice of a revised fiscal estimate in the same manner that notice of the original estimate is given.
This rule change will have no significant effect on the private sector regulated by OC
