AB711: Bill Text

AB711,33,11 1. Require an employer that elects under sub. (2) (bm) to self-insure its liability for the payment of compensation under this chapter to pay into the fund established under sub. (8).

AB711,33,15 2. Make any payments from the fund established under sub. (8) for the liability under this chapter of an employer that elects under sub. (2) (bm) to self-insure its liability for the payment of compensation under this chapter, whether currently or formerly exempt from the duty to insure under sub. (2) (a).

AB711,45 Section 45. 102.29 (1) (b) 2. of the statutes is amended to read:

AB711,33,24 102.29 (1) (b) 2. Out of the balance remaining after the deduction and payment specified in subd. 1., the employer, the insurance carrier, or, if applicable, the uninsured employers fund or the work injury supplemental benefit fund shall be reimbursed for all payments made by the employer, insurance carrier, or department, or which the employer, insurance carrier, or department may be obligated to make in the future, under this chapter, except that the employer, insurance carrier, or department shall not be reimbursed for any payments made or to be made under s. 102.18 (1) (b) 3. or (bp), 102.22, 102.35 (3), 102.57, or 102.60.

AB711,46 Section 46. 102.29 (8) of the statutes is amended to read:

AB711,34,7 102.29 (8) No student of a public school, as described in s. 115.01 (1), or a private school, as defined in s. 115.001 (3r), or an institution of higher education who is named under s. 102.077 as an employee of the school district or, private school, or institution of higher education for purposes of this chapter and who makes a claim for compensation under this chapter may make a claim or maintain an action in tort against the employer that provided the work training or work experience from which the claim arose.

AB711,47 Section 47. 102.31 (2) (b) 2. of the statutes is amended to read:

AB711,34,14 102.31 (2) (b) 2. Regardless of whether the notices required under par. (a) have been given, a cancellation or termination is effective upon the effective date of replacement insurance coverage obtained by the employer or , of an order under s. 102.28 (2) (b) exempting the employer from carrying the duty to carry insurance under s. 102.28 (2) (a), or of an election by an employer under s. 102.28 (2) (bm) to self-insure its liability for the payment of compensation under this chapter.

AB711,48 Section 48. 102.315 (2) of the statutes is amended to read:

AB711,34,23 102.315 (2) Employee leasing company liable. An employee leasing company is liable under s. 102.03 for all compensation payable under this chapter to a leased employee, including any payments required under s. 102.16 (3), 102.18 (1) (b) 3. or (bp), 102.22 (1), 102.35 (3), 102.57, or 102.60. Except as permitted under s. 102.29, an employee leasing company may not seek or receive reimbursement from another employer for any payments made as a result of that liability. An employee leasing company is not liable under s. 102.03 for any compensation payable under this chapter to an employee of a client who is not a leased employee.

AB711,49 Section 49 . 102.423 of the statutes is created to read:

AB711,35,10 102.423 Health service fee schedule. (1) Establishment of schedule. (a) By July 1, 2015, the department shall establish a schedule of the maximum fees that a health care provider may charge an employer or insurer for health services provided to an injured employee who claims benefits under this chapter. When that schedule is established, the department shall notify the legislative reference bureau and the legislative reference bureau shall publish that notice in the Wisconsin Administrative Register. In determining those maximum fees, the department shall divide the state into 5 regions based on geographical and economical similarity, including similarity in the cost of health services, and, for each region, shall do all of the following:

AB711,35,19 1. Determine the average payment made by group health benefit plans, as defined in s. 632.745 (9), group health plans, as defined in s. 632.745 (10), and self-insured health plans, as defined in s. 632.745 (24), and the average copayment, coinsurance, and deductible payment made by persons covered under those plans, for each health service included in the schedule based on health service payment data obtained from the Wisconsin Health Information Organization, the Workers Compensation Research Institute, health insurers and health plan sponsors, the group health insurance plan under subch. IV of ch. 40, and other sources determined by the department to be credible.

AB711,35,23 2. Set the maximum fee for each health service included in the schedule at 110 percent of the sum of the average payment for that service and the average copayment, coinsurance, and deductible payment for that service, as determined under subd. 1.

AB711,36,2 (b) 1. In this paragraph, "consumer price index" means the average of the consumer price index for medical care services over each 12-month period for all urban consumers, U.S. city average, as determined by the bureau of labor statistics of the federal department of labor.

AB711,36,7 2. On each July 1, beginning on July 1, 2016, the department shall adjust the maximum fees established under par. (a) by the percentage difference between the consumer price index for the 12-month period ending on December 31 of the preceding year and the consumer price index for the 12-month period ending on December 31 of the year before the preceding year.

AB711,36,11 (c) No less often than every 2 years, the department shall obtain health service payment data from the sources specified in par. (a) 1., redetermine the average payments specified in par. (a) 1., and revise the maximum fees established under par. (a) 2. based on that redetermined average.

AB711,36,14 (d) The department may not implement the fee schedule established under par. (a) or revise that schedule under par. (c) unless the schedule or revised schedule is approved by the council on worker's compensation.

AB711,36,17 (e) The department shall post a link to the fee schedule established under par. (a) on the department's Internet site. Notwithstanding s. 227.10 (1), the fee schedule need not be promulgated as a rule.

AB711,37,4 (2) Liability of employer or insurer. The liability of an employer or insurer for a health service included in the fee schedule established under sub. (1) (a) is limited to the maximum fee allowed under the schedule for that health service as of the date on which the health service was provided, any fee agreed to by contract between the employer or insurer and health care provider for that health service as of that date, or the health care provider's actual fee for the health service as of that date, whichever is less. A health care provider that provides health services to an injured employee under this chapter may not collect, or bring an action to collect, from the injured employee any charge that is in excess of the liability of the employer or insurer under this subsection. This subsection first applies to a health service provided to an injured employee on the date on which the notice under sub. (1) (a) is published in the Wisconsin Administrative Register.

AB711,37,5 (3) Rules. The department shall promulgate rules to implement this section.

AB711,50 Section 50. 102.425 (3) (am) of the statutes is created to read:

AB711,37,18 102.425 (3) (am) 1. Subject to subd. 2., if a prescription drug dispensed under sub. (2) (a) for outpatient use by an injured employee is a repackaged prescription drug, the liability of an employer or insurer for the cost of the repackaged prescription drug is limited to the average wholesale price, as determined under par. (a) 1., of the prescription drug set by the original manufacturer of the prescription drug, plus any dispensing fee that may be payable under par. (a) 2. and any taxes that may be applicable under par. (a) 3., except that if the national drug code number of the prescription drug as packaged by the original manufacturer of the prescription drug cannot be determined from the billing statement under par. (c), that liability is limited to the average wholesale price, as determined under par. (a) 1., of the lowest-priced drug product equivalent, plus any dispensing fee under par. (a) 2. and any taxes under par. (a) 3. that would be payable for the drug product equivalent.

AB711,37,20 2. Subdivision 1. does not apply to a repackaged prescription drug dispensed from a retail, mail-order, or institutional pharmacy.

AB711,51 Section 51. 102.425 (3) (b) of the statutes is amended to read:

AB711,37,25 102.425 (3) (b) In addition to the liability under par. (a) or (am), whichever is applicable, an employer or insurer is also liable for reimbursement to an injured employee for all out-of-pocket expenses incurred by the injured employee in obtaining the prescription drug dispensed.

AB711,52 Section 52. 102.425 (4) (a) of the statutes is amended to read:

AB711,38,6 102.425 (4) (a) Except as provided in par. (b), a pharmacist or practitioner who dispenses a prescription drug under sub. (2) to an injured employee may not collect, or bring an action to collect, from the injured employee any charge that is in excess of the liability of the injured employee under sub. (2) (c) 2. or the liability of the employer or insurer under sub. (3) (a) or (am), whichever is applicable.

AB711,53 Section 53. 102.425 (4) (b) of the statutes is amended to read:

AB711,38,19 102.425 (4) (b) If an employer or insurer denies or disputes liability for the cost of a drug prescribed to an injured employee under sub. (2), the pharmacist or practitioner who dispensed the drug may collect, or bring an action to collect, from the injured employee the cost of the prescription drug dispensed, subject to the limitations specified in sub. (3) (a) or (am), whichever is applicable. If an employer or insurer concedes liability for the cost of a drug prescribed to an injured employee under sub. (2), but disputes the reasonableness of the amount charged for the prescription drug, the employer or insurer shall provide notice under sub. (4m) (b) to the pharmacist or practitioner that the reasonableness of the amount charged is in dispute and the pharmacist or practitioner who dispensed the drug may not collect, or bring an action to collect, from the injured employee the cost of the prescription drug dispensed after receiving that notice.

AB711,54 Section 54. 102.425 (4m) (b) of the statutes is amended to read:

AB711,39,5 102.425 (4m) (b) An employer or insurer that disputes the reasonableness of the amount charged for a prescription drug dispensed under sub. (2) for outpatient use by an injured employee or the department under sub. (4) (b) or s. 102.16 (1m) (c) or 102.18 (1) (bg) 3. shall provide, within 30 days after receiving a completed bill for the prescription drug, reasonable written notice to the pharmacist or practitioner that the charge is being disputed. After receiving reasonable written notice under this paragraph or under sub. (4) (b) or s. 102.16 (1m) (c) or 102.18 (1) (bg) 1. 3. that a prescription drug charge is being disputed, a pharmacist or practitioner may not collect the disputed charge from, or bring an action for collection of the disputed charge against, the employee who received the prescription drug.

AB711,55 Section 55. 102.43 (5) (c) of the statutes is amended to read:

AB711,39,18 102.43 (5) (c) Compensation for temporary disability on account of receiving instruction under s. 102.61 (1) or (1m) shall not be reduced under sub. (2) on account of any wages earned for the first 24 hours worked by an employee during a week in which the employee is receiving that instruction. If an employee performs more than 24 hours of work during a week in which the employee is receiving that instruction, all wages earned for hours worked in excess of 24 during that week shall be offset against the employee's average weekly wage in calculating compensation for temporary disability under sub. (2). An employee who is receiving compensation for temporary disability on account of receiving instruction under s. 102.61 (1) or (1m) shall report any wages earned during the period in which the employee is receiving that instruction to the insurance carrier or self-insured employer paying that compensation. This paragraph does not apply after April 30, 2014 2016.

AB711,56 Section 56. 102.44 (1) (ag) of the statutes is amended to read:

AB711,40,4 102.44 (1) (ag) Notwithstanding any other provision of this chapter, every employee who is receiving compensation under this chapter for permanent total disability or continuous temporary total disability more than 24 months after the date of injury resulting from an injury that occurred prior to January 1, 2001 2003, shall receive supplemental benefits that shall be payable in the first instance by the employer or, subject to par. (c), by the employer's insurance carrier, or in the case of benefits payable to an employee under s. 102.66, shall be paid by the department out of the fund created under s. 102.65. Those supplemental benefits shall be paid only for weeks of disability occurring after January 1, 2003 2005, and shall continue during the period of such total disability subsequent to that date.

AB711,57 Section 57 . 102.44 (1) (ag) of the statutes, as affected by 2013 Wisconsin Act .... (this act), is amended to read:

AB711,40,16 102.44 (1) (ag) Notwithstanding any other provision of this chapter, every employee who is receiving compensation under this chapter for permanent total disability or continuous temporary total disability more than 24 months after the date of injury resulting from an injury that occurred prior to January 1, 2003, shall receive supplemental benefits that shall be payable by the employer or, subject to par. (c), by the employer's insurance carrier, or in the case of benefits payable to an employee under s. 102.66, shall be paid by the department out of the fund created under s. 102.65. Those supplemental benefits shall be paid only for weeks of disability occurring after January 1, 2005, and shall continue during the period of such total disability subsequent to that date.

AB711,58 Section 58. 102.44 (1) (am) of the statutes is amended to read:

AB711,40,22 102.44 (1) (am) If the employee is receiving the maximum weekly benefits in effect at the time of the injury, the supplemental benefit for a week of disability occurring after May 1, 2010 the effective date of this paragraph .... [LRB inserts date], shall be an amount that, when added to the regular benefit established for the case, shall equal $582 $669.

AB711,59 Section 59. 102.44 (1) (b) of the statutes is amended to read:

AB711,41,4 102.44 (1) (b) If the employee is receiving a weekly benefit that is less than the maximum benefit that was in effect on the date of the injury, the supplemental benefit for a week of disability occurring after May 1, 2010 the effective date of this paragraph .... [LRB inserts date], shall be an amount sufficient to bring the total weekly benefits to the same proportion of $582 $669 as the employee's weekly benefit bears to the maximum in effect on the date of injury.

AB711,60 Section 60. 102.44 (1) (c) of the statutes is renumbered 102.44 (1) (c) 1. and amended to read:

AB711,41,15 102.44 (1) (c) 1. Subject to any certificate filed under s. 102.65 (4), an employer or An insurance carrier paying the supplemental benefits required under this subsection shall be entitled to reimbursement for each such case from the fund established by s. 102.65 worker's compensation operations fund, commencing one year after the date of the first payment of those benefits and annually thereafter while those payments continue. To receive reimbursement under this paragraph, an employer or insurance carrier must file a claim for that reimbursement with the department by no later than 12 months after the end of the year in which the supplemental benefits were paid and the claim must be approved by the department.

AB711,61 Section 61. 102.44 (1) (c) 2. of the statutes is created to read:

AB711,41,25 102.44 (1) (c) 2. After the expiration of the deadline for filing a claim under subd. 1., the department shall determine the total amount of all claims filed by that deadline and shall use that total to determine the amount to be collected under s. 102.75 (1g) from each licensed worker's compensation insurance carrier, deposited in the worker's compensation operations fund, and used to provide reimbursement to insurance carriers paying supplemental benefits under this subsection. The department shall pay a claim for reimbursement approved by the department by no later than 16 months after the end of the year in which the claim was received by the department.

AB711,62 Section 62. 102.44 (1) (c) 3. of the statutes is created to read:

AB711,42,3 102.44 (1) (c) 3. This paragraph does not apply to supplemental benefits paid for an injury that occurs on or after July 1, 2015.

AB711,63 Section 63. 102.44 (1m) of the statutes is created to read:

AB711,42,10 102.44 (1m) Notwithstanding any other provision of this chapter, for an employee who is receiving compensation under this chapter for permanent total disability or continuous temporary total disability more than 24 months after the date of injury resulting from an injury that occurs on or after July 1, 2015, payment of compensation under this chapter for periods of disability occurring more than 6 years after the date of injury shall be made as follows:

AB711,42,14 (a) If the employee was entitled to the maximum weekly benefit that was in effect at the time of the injury, payment of the weekly benefit for a week of disability occurring more than 6 years after the date of injury shall be at the maximum rate that is in effect at the time the benefit accrues and becomes payable.

AB711,42,21 (b) If the employee was entitled to less than the maximum weekly benefit that was in effect at the time of the injury, payment of the weekly benefit for a week of disability occurring more than 6 years after the date of injury shall be in an amount that bears the same proportion to the maximum rate that is in effect at the time the benefit accrues and becomes payable as the employee's weekly benefit at the time of the injury bore to the maximum weekly benefit that was in effect at the time of the injury.

AB711,64 Section 64. 102.44 (3) of the statutes is amended to read:

AB711,43,5 102.44 (3) For permanent partial disability not covered by ss. 102.52 to 102.56, the aggregate number of weeks of indemnity shall bear such relation to 1,000 weeks as the nature of the injury bears to one causing permanent total disability and. Subject to sub. (4m), the weekly indemnity for such permanent partial disability shall be payable at the rate of two-thirds of the average weekly earnings of the employee, the earnings to be computed as provided in s. 102.11. The weekly indemnity, shall be in addition to compensation for the healing period, and shall be for the period that the employee may live, not to exceed 1,000 weeks.

AB711,65 Section 65. 102.44 (4) of the statutes is renumbered 102.44 (4) (intro.) and amended to read:

AB711,43,10 102.44 (4) (intro.) Where the When a permanent disability is covered by ss. 102.52, 102.53, and 102.55, such those sections shall govern; provided, that in no case shall the except as follows:

AB711,43,12 (a) The percentage of permanent total disability may not be taken as more than 100 percent.

AB711,66 Section 66. 102.44 (4) (b) of the statutes is created to read:

AB711,43,16 102.44 (4) (b) The weekly indemnity for periods of permanent partial disability beginning with the 201st week of permanent partial disability shall be as provided in sub. (4m).

AB711,67 Section 67. 102.44 (4m) of the statutes is created to read:

AB711,43,23 102.44 (4m) Notwithstanding any other provision of this chapter, for an employee who is receiving compensation under this chapter for permanent partial disability, whether or not covered by ss. 102.52, 102.53, or 102.55, payment of compensation under this chapter for periods of permanent partial disability beginning with the 201st week of permanent partial disability shall be made as follows:

AB711,44,3 (a) If the employee was entitled to the maximum weekly benefit that was in effect at the time of the injury, payment of the weekly benefit for a week of permanent partial disability beginning with the 201st week of permanent partial disability shall be at the maximum rate that is in effect at the time the benefit accrues and becomes payable.

AB711,44,10 (b) If the employee was entitled to less than the maximum weekly benefit that was in effect at the time of the injury, payment of the weekly benefit for a week of permanent partial disability beginning with the 201st week of permanent partial disability shall be in an amount that bears the same proportion to the maximum rate that is in effect at the time the benefit accrues and becomes payable as the employee's weekly benefit at the time of the injury bore to the maximum weekly benefit that was in effect at the time of the injury.

AB711,68 Section 68. 102.445 of the statutes is created to read:

AB711,44,16 102.445 Continuation of health care coverage. (1) In this section, "group health care coverage" means health care coverage of an employee, or of an employee and his or her dependents, under a group health benefit plan, as defined in s. 632.745 (9), a group health plan, as defined in s. 632.745 (10), or a self-insured health plan, as defined in s. 632.745 (24).

AB711,45,3 (2) If at the time of injury the employer of an injured employee is providing the injured employee with group health care coverage, the employer shall maintain that coverage during the injured employee's period of temporary disability at the level and under the conditions that the employer would have provided coverage if the injured employee had continued in employment continuously during that period of temporary disability, without regard to the injured employee's employment status during that period. If during an injured employee's period of temporary disability the injured employee continues making any contributions required of the injured employee for participation in the plan providing that coverage, the employer shall continue making any contributions required of the employer for the injured employee's participation in that plan as if the injured employee were not in a period of temporary disability.

AB711,45,17 (3) Any employer that fails to maintain group health care coverage for an injured employee as required under sub. (2) or such an employer's worker's compensation insurance carrier is liable to the injured employee for an amount that is equal to 100 percent of the contributions required of the employer under sub. (2) that the employer failed to pay. That liability also applies to an employer that fails to maintain group health care coverage provided at the time of injury for an injured employee or to such an employer's worker's compensation insurance carrier in a case in which the employer's liability under this chapter for the employee's injury or the period of the employee's temporary disability is in dispute, if the injured employee submits the dispute to the department and the injury or period of disability is found to be compensable under this chapter. That liability is in addition to any temporary disability benefits payable under this chapter and may not be considered in computing the employee's average weekly earnings under s. 102.11, actual wage loss, or benefits for temporary disability.

AB711,45,22 (4) Any injured employee whose employer fails to maintain group health care coverage for the injured employee as required under sub. (2) may request a hearing on the violation under s. 102.17. If, after hearing, the examiner finds that the employer has violated sub. (2), the examiner may order the employer to pay the injured employee the amount for which the employer is liable under sub. (3).

AB711,46,2 (5) If an injured employee ends his or her employment with an employer during or at the end of a period of temporary disability, the time for conversion to individual coverage under s. 632.897 (6) shall be calculated as beginning on the date on which the injured employee began the period of temporary disability.

AB711,69 Section 69. 102.65 (4) (intro.) of the statutes is amended to read:

AB711,46,15 102.65 (4) (intro.) The secretary shall monitor the cash balance in, and incurred losses to, the work injury supplemental benefit fund using generally accepted actuarial principles. If the secretary determines that the expected ultimate losses to the work injury supplemental benefit fund on known claims exceed 85 percent of the cash balance in that fund, the secretary shall consult with the council on worker's compensation. If the secretary, after consulting with the council on worker's compensation, determines that there is a reasonable likelihood that the cash balance in the work injury supplemental benefit fund may become inadequate to fund all claims under ss. 102.44 (1) (c), 102.49, 102.59, and 102.66, the secretary shall file with the secretary of administration a certificate attesting that the cash balance in that fund is likely to become inadequate to fund all claims under ss. 102.44 (1) (c), 102.49, 102.59, and 102.66 and specifying one of the following:

AB711,70 Section 70. 102.75 (1) of the statutes is amended to read:

AB711,47,6 102.75 (1) The department shall assess upon and collect from each licensed worker's compensation insurance carrier and from each employer exempted under s. 102.28 (2) by special order or by rule, (b) or (bm) from the duty to carry insurance under s. 102.28 (2) (a) the proportion of total costs and expenses incurred by the council on worker's compensation for travel and research and by the department and the commission in the administration of this chapter for the current fiscal year, plus any deficiencies in collections and anticipated costs from the previous fiscal year, that the total indemnity paid or payable under this chapter by each such carrier and exempt employer in worker's compensation cases initially closed during the preceding calendar year, other than for increased, double, or treble compensation, bore to the total indemnity paid in cases closed the previous calendar year under this chapter by all carriers and exempt employers, other than for increased, double, or treble compensation. The council on worker's compensation and the commission shall annually certify any costs and expenses for worker's compensation activities to the department at such time as the secretary requires.

AB711,71 Section 71. 102.75 (1g) of the statutes is created to read:

AB711,47,17 102.75 (1g) The department shall collect from each licensed worker's compensation carrier the proportion of reimbursement approved by the department under s. 102.44 (1) (c) 1. for supplemental benefits paid in the year before the previous year that the total indemnity paid or payable under this chapter by the carrier in worker's compensation cases initially closed during the preceding calendar year, other than for increased, double, or treble compensation, bore to the total indemnity paid in cases closed the previous calendar year under this chapter by all carriers, other than for increased, double, or treble compensation. This subsection does not apply to claims for reimbursement under s. 102.44 (1) (c) 1. for supplemental benefits paid for injuries that occur on or after July 1, 2015.

AB711,72 Section 72. 102.75 (1m) of the statutes, as affected by 2013 Wisconsin Act 20, is amended to read:

AB711,47,24 102.75 (1m) The moneys collected under sub. subs. (1) and (1g) and under ss. 102.28 (2) and 102.31 (7), together with all accrued interest, shall constitute a separate nonlapsible fund designated as the worker's compensation operations fund. Moneys in the fund may be expended only as provided in s. 20.445 (1) (ra), (rb), and (rp) and (2) (ra) and may not be used for any other purpose of the state.

AB711,73 Section 73. 102.75 (2) of the statutes is amended to read:

AB711,48,13 102.75 (2) The department shall require that payments for costs and expenses for each fiscal year shall be made on such dates as the department prescribes by each licensed worker's compensation insurance carrier and employer exempted under s. 102.28 (2) (b) or (bm) from the duty to insure under s. 102.28 (2) (a) to make the payments required under sub. (1) for each fiscal year on such dates as the department prescribes. The department shall also require each licensed worker's compensation insurance carrier to make the payments required under sub. (1g) for each fiscal year on those dates. Each such payment shall be a sum equal to a proportionate share of the annual costs and expenses assessed upon each carrier and employer as estimated by the department. Interest shall accrue on amounts not paid within 30 days after the date prescribed by the department under this subsection at the rate of 1 percent per month. All interest payments received under this subsection shall be deposited in the fund established under s. 102.65.

AB711,74 Section 74. 102.75 (4) of the statutes is amended to read:

AB711,48,19 102.75 (4) From the appropriation under s. 20.445 (1) (ra), the department shall allocate the amounts that it collects in application fees from employers applying for exemption under s. 102.28 (2) (b) and the annual amount that it collects from employers that have been exempted under s. 102.28 (2) (b) to fund the activities of the department under s. 102.28 (2) (b) and (c) with respect to those employers.

AB711,75 Section 75. 102.80 (1) (f) of the statutes is created to read:

AB711,48,22 102.80 (1) (f) Amounts transferred to the uninsured employers fund from the appropriation under s. 20.445 (1) (ra) as provided in s. 102.81 (1) (c).

AB711,76 Section 76. 102.81 (1) (a) of the statutes is amended to read:

AB711,49,5 102.81 (1) (a) If an employee of an uninsured employer, other than an employee who is eligible to receive alternative benefits under s. 102.28 (3), suffers an injury for which the uninsured employer is liable under s. 102.03, the department or the department's reinsurer shall pay to or on behalf of the injured employee or to the employee's dependents an amount equal to the compensation owed them by the uninsured employer under this chapter except penalties and interest due under ss. 102.16 (3), 102.18 (1) (b) 3. and (bp), 102.22 (1), 102.35 (3), 102.57, and 102.60.

AB711,77 Section 77. 102.81 (1) (c) of the statutes is created to read:

AB711,49,13 102.81 (1) (c) 1. The department shall pay a claim under par. (a) in excess of $1,000,000 from the uninsured employers fund in the first instance. If the claim is not covered by excess or stop-loss reinsurance under sub. (2), the secretary of administration shall transfer from the appropriation account under s. 20.445 (1) (ra) to the uninsured employers fund as provided in subds. 2. and 3. an amount equal to the amount by which payments from the uninsured employers fund on the claim are in excess of $1,000,000.

AB711,49,20 2. Each calendar year the department shall file with the secretary of administration a certificate setting forth the number of claims in excess of $1,000,000 in the preceding year paid from the uninsured employers fund, the payments made from the uninsured employers fund on each such claim in the preceding year, and the total payments made from the uninsured employers fund on all such claims and, based on that information, the secretary of administration shall determine the amount to be transferred under subd. 1. in that calendar year.

AB711,50,3 3. The maximum amount that the secretary of administration may transfer under subd. 1. in a calendar year is $500,000. If the amount determined under subd. 2. is $500,000 or less, the secretary of administration shall transfer the amount determined under subd. 2. If the amount determined under subd. 2. exceeds $500,000, the secretary of administration shall transfer $500,000 in the calendar year in which the determination is made and, subject to the maximum transfer amount of $500,000 per calendar year, shall transfer that excess in the next calendar year or in subsequent calendar years until that excess is transferred in full.