SB400,3,115 40.51 (2) (a) Except as provided in subs. (10), (10m), (11) and (16), any eligible
6employe may become covered by group health insurance by electing coverage within
730 days of being hired, to be effective as of the first day of the month which begins
8on or after the date the application is received by the employer, or by electing
9coverage prior to becoming eligible for employer contribution towards the premium
10cost as provided in s. 40.05 (4) (a) to be effective upon becoming eligible for employer
11contributions.
SB400,3,15 12(b) An eligible employe who is not insured, but who is eligible for an employer
13contribution under s. 40.05 (4) (ag) 1., may elect coverage prior to becoming eligible
14for an employer contribution under s. 40.05 (4) (ag) 2., with the coverage to be
15effective upon becoming eligible for the increase in the employer contribution.
SB400,3,21 16(c) Any employe who does not so elect at one of these times make an election
17at one of the times specified in par. (a) or (b)
, or who subsequently cancels the
18insurance, shall not thereafter become insured unless the employe furnishes
19evidence of insurability satisfactory to the insurer, at the employe's own expense or
20obtains coverage subject to contractual waiting periods. The method to be used shall
21be specified in the health insurance contract.
SB400, s. 5 22Section 5. 40.51 (2) (d) of the statutes is created to read:
SB400,3,2423 40.51 (2) (d) This subsection does not apply to an eligible employe, as defined
24in s. 40.02 (25) (b) 9m., who is covered under sub. (7).
SB400, s. 6
1Section 6. 40.51 (7) of the statutes is renumbered 40.51 (7) (a) and amended
2to read:
SB400,4,53 40.51 (7) (a) Any employer, other than the state, may offer to all of its employes
4and to eligible employes, as defined in s. 40.02 (25) (b) 9m., a health care coverage
5plan through a program offered by the group insurance board.
SB400,4,10 6(b) Notwithstanding sub. (2) and ss. 40.05 (4) and 40.52 (1), but subject to par.
7(c),
the department may by rule establish different eligibility standards or
8contribution requirements for such employes and employers and may by rule limit
9the categories of employers, other than the state, which may be included as
10participating employers under this subchapter.
SB400, s. 7 11Section 7. 40.51 (7) (c) of the statutes is created to read:
SB400,4,1312 40.51 (7) (c) In establishing a health care coverage plan under this subsection,
13the department:
SB400,4,1614 1. May not impose different requirements relating to evidence of insurability
15or preexisting conditions on eligible employes, as defined in s. 40.02 (25) (b) 9m., from
16those which it imposes on employes.
SB400,4,1817 2. May not segregate employes and eligible employes, as defined in s. 40.02 (25)
18(b) 9m., into different groups for insurance coverage purposes.
SB400,4,2119 3. Shall provide that any eligible employe, as defined in s. 40.02 (25) (b) 9m.,
20may not receive dependent coverage unless the employe received dependent
21coverage immediately before terminating employment with the employer.
SB400,4,2522 4. Shall provide that any eligible employe, as defined in s. 40.02 (25) (b) 9m.,
23who receives dependent coverage may convert to individual coverage, but that any
24eligible employe, as defined in s. 40.02 (25) (b) 9m., who receives individual coverage
25may not convert to dependent coverage.
SB400, s. 8
1Section 8. 40.52 (4) of the statutes is amended to read:
SB400,5,42 40.52 (4) The group insurance board shall establish the terms of health
3insurance plans for eligible employes, as defined under s. 40.02 (25) (b) 9., 9m. and
411., who elect coverage under s. 40.51 (7) or (10).
SB400, s. 9 5Section 9. 59.52 (11) (c) of the statutes is amended to read:
SB400,5,166 59.52 (11) (c) Employe insurance. Provide for individual or group hospital,
7surgical and life insurance for county officers and employes and for payment of
8premiums for such officers and employes. In addition, a county with at least 100
9employes may elect to provide health care benefits on a self-insured basis to its
10officers and employes, and any 2 or more counties which together have at least 100
11employes may jointly provide health care benefits on a self-insured basis to officers
12and employes of the counties. Counties which elect to provide health care benefits
13on a self-insured basis to their officers and employes shall be subject to the
14requirements set forth under s. 120.13 (2) (c) to (e) and (g). Any hospital or surgical
15insurance or self-insured health care benefits that are provided under this
16paragraph shall be subject to the requirements under s. 66.183.
SB400, s. 10 17Section 10. 66.183 of the statutes is created to read:
SB400,5,19 1866.183 Health insurance for retired governmental employes. (1)
19Definitions. In this section:
SB400,5,2320 (a) "Eligible person" means an individual who, at the time of his or her
21retirement from employment by, or as an officer of, a political subdivision, is eligible
22to become an annuitant of the Wisconsin retirement system under ch. 40 or to receive
23disability payments from the Wisconsin retirement system under ch. 40.
SB400,5,2524 (b) "Medicare" means coverage under both part A and part B of Title XVIII of
25the federal Social Security Act, 42 USC 1395 to 1395ggg.
SB400,6,1
1(c) "Political subdivision" means a city, village, town or county.
SB400,6,7 2(2) Continuation of coverage. (a) 1. Notwithstanding s. 632.897, and subject
3to par. (b) and to subds. 2. and 3., a political subdivision may allow an eligible person,
4upon his or her retirement or disability, to continue to be covered indefinitely by any
5employer-sponsored hospital, medical or dental group insurance policy under which
6the eligible person was covered immediately before his or her retirement or
7disability.
SB400,6,118 2. To obtain and maintain any coverage specified under subd. 1., the eligible
9person must pay the entire premium for the coverage, except as otherwise provided
10in an applicable collective bargaining agreement or a policy or ordinance of the
11political subdivision.
SB400,6,1512 3. A political subdivision may discontinue any coverage specified under subd.
131. if the eligible person is responsible for paying the premium for the coverage and
14he or she does not do so within the time period specified for payment of premiums
15under 42 USC 300bb-2 (2) (c).
SB400,6,2016 (b) For purposes of establishing premiums and coverage under a hospital,
17medical or dental group insurance policy under this section, current employes and
18eligible persons may not be segregated into different groups, except that eligible
19persons who are 65 years of age or older and are eligible for and enrolled in medicare
20may be segregated into a separate group for those purposes.
SB400, s. 11 21Section 11. 66.184 of the statutes is amended to read:
SB400,7,2 2266.184 Self-insured health plans. If a city, including a 1st class city, or a
23village provides health care benefits under its home rule power, or if a town provides
24health care benefits, to its officers and employes on a self-insured basis, the
25self-insured plan shall comply with ss. 49.493 (3) (d), 66.183, 631.89, 631.90, 631.93

1(2), 632.746 (10) (a) 2. and (b) 2., 632.747 (3), 632.85, 632.853, 632.855, 632.87 (4) and
2(5), 632.895 (9) to (13), 632.896, 767.25 (4m) (d), 767.51 (3m) (d) and 767.62 (4) (b) 4.
SB400, s. 12 3Section 12. 66.186 of the statutes is amended to read:
SB400,7,18 466.186 Health insurance; first class cities. The Subject to s. 66.183, the
5common council of any 1st class city may, by ordinance or resolution, provide for
6general hospital, surgical and group insurance for both active and retired city officers
7and city employes and their respective dependents and for payment of premiums
8therefor in private companies, or may, by ordinance or resolution, elect to offer to all
9of its employes a health care coverage plan through a program offered by the group
10insurance board under ch. 40. Municipalities which elect to participate under s.
1140.51 (7) shall be subject to the applicable sections of ch. 40 instead of this section.
12Contracts for such insurance may be entered into for active officers and employes
13separately from such contracts for retired officers and employes, but shall be subject
14to s. 66.183
. Appropriations may be made for the purpose of financing such
15insurance. Moneys accruing to such fund, by investment or otherwise, shall not be
16diverted for any other purpose than those for which such fund was set up or to defray
17management expenses of such fund or to partially pay premiums so as to reduce costs
18to the city or to persons covered by such insurance, or both.
SB400, s. 13 19Section 13. Initial applicability.
SB400,7,2420 (1) The treatment of section 66.183 of the statutes, to the extent that it affects
21an eligible person, as defined in section 66.183 (1) (a) of the statutes, who is affected
22by a collective bargaining agreement that contains provisions inconsistent with that
23treatment, first applies to such a person on the day on which the collective bargaining
24agreement expires or is extended, modified or renewed, whichever occurs first.
SB400,7,2525 (End)
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