11. A copy of any comments and opinion prepared by the Board of Veterans Affairs under s. 45.03 (2m), Stats., for rules proposed by the Department of Veterans Affairs. None.
12. Agency contact person:
A copy of the full text of the proposed rule changes, analysis and fiscal estimate may be obtained from the Web site at: http://oci.wi.gov/ocirules.htm Or by contacting Julie E. Walsh, Senior Attorney, at:
Phone: (608) 264-8101
Address: 125 South Webster St – 2nd Floor, Madison WI 53703-3474
Mail: PO Box 7873, Madison, WI 53707-7873
13. Place where comments are to be submitted and deadline for submission:
The deadline for submitting comments is 4:00 p.m. on March 22, 2016.
Mailing address:
Julie E. Walsh
Legal Unit - OCI Rule Comment for Rule Ins 1750
Office of the Commissioner of Insurance
PO Box 7873
Madison WI 53707-7873
Street address:
Julie E. Walsh
Legal Unit - OCI Rule Comment for Rule Ins 1750
Office of the Commissioner of Insurance
125 South Webster St – 2nd Floor
Madison WI 53703-3474
Email address:
Julie E. Walsh
The proposed rule changes are:
Section 1. Ins 17.50 (2) (am) is created to read:
Ins 17.50 (2) (am) “Affiliated health care providers” means two or more health care providers delivering services as contained in s. 655.002 (1), Stats., that are either legal entities or are employed by one or more legal entities over which operating control is exercised by a common controlling legal entity, which itself need not be a health care provider nor by being a common controlling entity will it be deemed to be a health care provider, and whose incomes are consolidated with the controlling legal entity in audited financial statements prepared under generally accepted accounting principles. Section 2. Ins 17.50 (2) (e) and (g) are amended to read:
Ins 17.50 (2) (e) “Provider,” when used without modification, means a health care provider as defined in s. 655.001 (8), Stats., or affiliated health care providers as defined in sub. par. (am), that is responsible for the establishment and operation of a self-insured plan. (g) “Self-insured plan” means a method, other than through the purchase of insurance, by which a health care provider or affiliated health care providers may furnish professional liability coverage which meets the requirements of ch. 655, Stats. Section 3. Ins 17.50 (4) (intro.), (L) and (m) are amended to read:
Ins 17.50 (4) Initial Filing. A provider that intends to establish a self-insured plan shall file with the office a proposal which shall include all the following as applicable:
(L) The provider’s most recent audited annual financial statement prepared under generally accepted accounting principles on a consolidated basis that includes all affiliated providers covered under the self-insured plan.
(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
