AB662: Bill Text

AB662,9,6 (2) (a) The department shall design, establish and administer a health care coverage plan for employers that provides coverage beginning not later than January 1, 2000. In establishing the health care coverage plan, the department shall solicit and accept bids and enter into contracts with insurers who are to provide health care coverage under the health care coverage plan. The health care coverage plan is subject to the provisions of chs. 600 to 646 that apply to group health benefit plans, as defined in s. 632.745 (9), to the same extent as any other group health benefit plan, as defined in s. 632.745 (9). Before the health care coverage plan may be implemented, the board must approve the plan.

AB662,9,10 (b) The health care coverage plan shall require that all insurance rates under the plan be published annually in a single publication that is made available to employers and employes. The rates shall be listed by county and by any other factor that the department considers appropriate.

AB662,9,13 (c) The health care coverage plan shall have an enrollment period that is identical to that provided to state employes who receive health care coverage under s. 40.51 (6).

AB662,9,17 (d) The department shall charge employers who participate in the health care coverage plan a fee to cover the department's cost in designing, establishing and administering the health care coverage plan. All moneys received under this paragraph shall be credited to the appropriation account under s. 20.515 (2) (g).

AB662,9,20 (e) The department may not sell any health care coverage plan to an employer or enroll any employe in the health care coverage plan, but the department may publicize the availability of the health care coverage plan for employers.

AB662,9,22 (f) The department may enter into a contract with any person to provide services relating to the administration of the health care coverage plan.

AB662,9,24 (3) Any employer who participates in the health care coverage plan shall do all of the following:

AB662,10,3 (a) Offer health care coverage under the plan to all of its permanent employes who have a normal work week of 30 or more hours and may offer health care coverage under the plan to any of its other employes.

AB662,10,7 (b) Provide health care coverage under the plan to at least 50% of its permanent employes who have a normal work week of 30 or more hours and who do not otherwise receive health care coverage as a dependent under any other plan that is not offered by the employer.

AB662,10,10 (c) Pay for each employe at least 50% of the lowest premium rate that would be available to the employer for that employe's coverage under the health care coverage plan.

AB662,10,12 (d) Make premium payments for the health care coverage of its employes directly to the insurer providing the health care coverage.

AB662,10,15 (4) Any employer that provides health care coverage for its employes under the plan and that voluntarily terminates coverage under the plan is not eligible to participate in the plan for at least 3 years from the date that coverage is terminated.

AB662,10,19 (5) (a) Any insurer that submits a bid to offer health care coverage under s. 40.51 (6) is required to submit a bid to offer the health care coverage plan established under sub. (2) in those counties in which the insurer bids to provide health care coverage under s. 40.51 (6).

AB662,10,24 (b) Any insurer that offers the health care coverage plan shall provide coverage under the plan to any employer that applies for coverage, and to all of the employer's employes who elect coverage under the health care coverage plan, without regard to the health condition or claims experience of any individual who would be covered under the health care coverage plan if all of the following apply:

AB662,11,2 1. The employer agrees to pay the premium required for coverage under the health care coverage plan.

AB662,11,5 2. The employer agrees to comply with all provisions of the health care coverage plan that apply generally to a policyholder or an insured without regard to health condition or claims experience.

AB662,11,7 (6) (a) The health care coverage plan may only be sold by insurance agents licensed under ch. 628.

AB662,11,11 (b) An insurance agent may not sell any health care coverage under the health care coverage plan on behalf of an insurer unless he or she is employed by the insurer or has a contract with the insurer to sell the health care coverage on behalf of the insurer.

AB662,11,16 (c) The board shall set, and may adjust as often as semiannually, the commission rate at which an insurer shall compensate an insurance agent for the sale of a policy under the health care coverage plan. The rate shall be based on the average commission rate that insurance agents are paid in the state for the sale of comparable health insurance policies at the time that the rate is set or adjusted.

AB662,11,18 (d) An insurer shall specify on the first page of any policy sold under the health care coverage plan the amount of the commission paid to the insurance agent.

AB662,11,24 (7) (a) Annually, on or before December 31, the board shall submit a report to the appropriate standing committees under s. 13.172 (3) and to the governor on the operation of the health care coverage plan. The report shall specify the number of employers participating in the health care coverage plan, calculate the costs of the health care coverage plan to employers and their employes and include recommendations for improving the health care coverage plan.

AB662,12,10 (b) No later than August 1, 2005, the board shall submit a report to the appropriate standing committees under s. 13.172 (3) and to the governor that offers recommendations as to whether the department should continue to administer the health care coverage plan, whether a different state agency should administer the health care coverage plan or whether the health care coverage plan should be administered by a private nonprofit organization. If the board recommends that a different state agency administer the health care coverage plan or that the health care coverage plan be administered by a private nonprofit organization, the board shall submit proposed legislation to the appropriate standing committees under s. 13.172 (3) at the time that the board submits its report.

AB662, s. 19 Section 19. Subchapter X of chapter 40 [precedes 40.98] of the statutes, as created by 1997 Wisconsin Act .... (this act), is repealed.

AB662, s. 20 Section 20. Nonstatutory provisions.

AB662,12,17 (1) Private employer health care coverage board. Notwithstanding the length of terms specified for the members of the private employer health care coverage board under section 15.165 (5) of the statutes, as created by this act, the initial members shall be appointed for the following terms:

AB662,12,19 (a) The members specified under section 15.165 (5) (a) 1., 3. and 7. of the statutes, as created by this act, for terms expiring on May 1, 2000.

AB662,12,21 (b) The members specified under section 15.165 (5) (a) 2., 5. and 8. of the statutes, as created by this act, for terms expiring on May 1, 2001.

AB662,12,23 (c) The members specified under section 15.165 (5) (a) 4. and 6. of the statutes, as created by this act, for terms expiring on May 1, 2002.

AB662,13,5 (2) Position authorizations for the department of employe trust funds. The authorized FTE positions for the department of employe trust funds are increased by 3.5 GPR positions on the effective date of this subsection, to be funded from the appropriation under section 20.515 (2) (a) of the statutes, as created by this act, for the purpose of designing, establishing and administering the private employer health care coverage plan under subchapter X of chapter 40 of the statutes, as created by this act.

AB662, s. 21 Section 21. Effective dates. This act takes effect on the day after publication, except as follows:

AB662,13,9 (1) The repeal of section 20.515 (2) (a) of the statutes takes effect on January 1, 2000.

AB662,13,11 (2) The amendment of section 40.02 (26) (intro.) (by Section (14) and (28) (by Section (16) of the statutes takes effect on January 1, 2007.

AB662,13,14 (3) The repeal of sections 13.94 (1) (p), 15.07 (1) (b) 21., 15.165 (5) and 20.515 (2) (title) and (g) and subchapter X of chapter 40 of the statutes takes effect on January 1, 2007.

AB662,13,15 (End)