SB12,35
1Section 35. 16.865 (8) of the statutes is amended to read:
SB12,18,162 16.865 (8) Annually in each fiscal year, allocate as a charge to each agency a
3proportionate share of the estimated costs attributable to programs administered by
4the agency to be paid from the appropriation under s. 20.505 (2) (k). The department
5may charge premiums to agencies to finance costs under this subsection and pay the
6costs from the appropriation on an actual basis. The department shall deposit all
7collections under this subsection in the appropriation account under s. 20.505 (2) (k).
8Costs assessed under this subsection may include judgments, investigative and
9adjustment fees, data processing and staff support costs, program administration
10costs, litigation costs, and the cost of insurance contracts under sub. (5). In this
11subsection, "agency" means an office, department, independent agency, institution
12of higher education, association, society, or other body in state government created
13or authorized to be created by the constitution or any law, that is entitled to expend
14moneys appropriated by law, including the legislature and the courts, but not
15including an authority created in subch. II of ch. 114 or , subch. III of ch. 149, or subch.
16III of ch. 636
or in ch. 231, 232, 233, 234, 237, 238, or 279.
SB12,36 17Section 36. 25.50 (1) (d) of the statutes is amended to read:
SB12,19,218 25.50 (1) (d) "Local government" means any county, town, village, city, power
19district, sewerage district, drainage district, town sanitary district, public inland
20lake protection and rehabilitation district, local professional baseball park district
21created under subch. III of ch. 229, long-term care district under s. 46.2895, local
22professional football stadium district created under subch. IV of ch. 229, local
23cultural arts district created under subch. V of ch. 229, public library system, school
24district or technical college district in this state, any commission, committee, board
25or officer of any governmental subdivision of this state, any court of this state, other

1than the court of appeals or the supreme court, or any authority created under s.
2114.61, 149.41, 231.02, 233.02 or, 234.02 , or 636.70.
SB12,37 3Section 37. 40.02 (54) (n) of the statutes is created to read:
SB12,19,44 40.02 (54) (n) The Badger Health Benefit Authority.
SB12,38 5Section 38. 49.45 (2) (a) 3. of the statutes is amended to read:
SB12,19,106 49.45 (2) (a) 3. Determine Subject to s. 636.30 (1) (o), determine the eligibility
7of persons for medical assistance, rehabilitative, and social services under ss. 49.46,
849.468, 49.47, and 49.471 and rules and policies adopted by the department and may,
9under a contract under s. 49.78 (2), delegate all, or any portion, of this function to the
10county department under s. 46.215, 46.22, or 46.23 or a tribal governing body.
SB12,39 11Section 39. 70.11 (41c) of the statutes is created to read:
SB12,19,1412 70.11 (41c) Badger Health Benefit Authority. All property owned by the
13Badger Health Benefit Authority, provided that the use of the property is primarily
14related to the purposes of the authority.
SB12,40 15Section 40. 71.26 (1) (be) of the statutes is amended to read:
SB12,19,2016 71.26 (1) (be) Certain authorities. Income of the University of Wisconsin
17Hospitals and Clinics Authority, of the Health Insurance Risk-Sharing Plan
18Authority, of the Badger Health Benefit Authority, of the Fox River Navigational
19System Authority, of the Wisconsin Economic Development Corporation, and of the
20Wisconsin Aerospace Authority.
SB12,41 21Section 41. 77.54 (9a) (a) of the statutes is amended to read:
SB12,20,222 77.54 (9a) (a) This state or any agency thereof, the University of Wisconsin
23Hospitals and Clinics Authority, the Wisconsin Aerospace Authority, the Health
24Insurance Risk-Sharing Plan Authority, the Badger Health Benefit Authority, the

1Wisconsin Economic Development Corporation, and the Fox River Navigational
2System Authority.
SB12,42 3Section 42. 101.055 (2) (a) of the statutes is amended to read:
SB12,20,84 101.055 (2) (a) "Agency" means an office, department, independent agency,
5authority, institution, association, society, or other body in state government created
6or authorized to be created by the constitution or any law, and includes the
7legislature and the courts, but excludes the Health Insurance Risk-Sharing Plan
8Authority and the Badger Health Benefit Authority.
SB12,43 9Section 43. 230.03 (3) of the statutes is amended to read:
SB12,20,1910 230.03 (3) "Agency" means any board, commission, committee, council, or
11department in state government or a unit thereof created by the constitution or
12statutes if such board, commission, committee, council, department, unit, or the
13head thereof, is authorized to appoint subordinate staff by the constitution or
14statute, except a legislative or judicial board, commission, committee, council,
15department, or unit thereof or an authority created under subch. II of ch. 114 or,
16subch. III of ch. 149, or subch. III of ch. 636 or under ch. 231, 232, 233, 234, 237, 238,
17or 279. "Agency" does not mean any local unit of government or body within one or
18more local units of government that is created by law or by action of one or more local
19units of government.
SB12,44 20Section 44. 230.03 (3) of the statutes, as affected by 2011 Wisconsin Act 32 and
212013 Wisconsin Act .... (this act), is repealed and recreated to read:
SB12,21,722 230.03 (3) "Agency" means any board, commission, committee, council, or
23department in state government or a unit thereof created by the constitution or
24statutes if such board, commission, committee, council, department, unit, or the
25head thereof, is authorized to appoint subordinate staff by the constitution or

1statute, except the Board of Regents of the University of Wisconsin System, a
2legislative or judicial board, commission, committee, council, department, or unit
3thereof or an authority created under subch. II of ch. 114, subch. III of ch. 149, or
4subch. III of ch. 636 or under ch. 231, 232, 233, 234, 237, 238, or 279. "Agency" does
5not mean any local unit of government or body within one or more local units of
6government that is created by law or by action of one or more local units of
7government.
SB12,45 8Section 45. 230.80 (4) of the statutes is amended to read:
SB12,21,169 230.80 (4) "Governmental unit" means any association, authority, board,
10commission, department, independent agency, institution, office, society, or other
11body in state government created or authorized to be created by the constitution or
12any law, including the legislature, the office of the governor, and the courts, but
13excluding the Health Insurance Risk-Sharing Plan Authority and the Badger
14Health Benefit Authority
. "Governmental unit" does not mean any political
15subdivision of the state or body within one or more political subdivisions that is
16created by law or by action of one or more political subdivisions.
SB12,46 17Section 46. 230.90 (1) (c) of the statutes is amended to read:
SB12,22,218 230.90 (1) (c) "Governmental unit" means any association, authority, board,
19commission, department, independent agency, institution, office, society or other
20body in state government created or authorized to be created by the constitution or
21any law, including the legislature, the office of the governor and the courts.
22"Governmental unit" does not mean the University of Wisconsin Hospitals and
23Clinics Authority, the Health Insurance Risk-Sharing Plan Authority, the Badger
24Health Benefit Authority,
or any political subdivision of the state or body within one

1or more political subdivisions which is created by law or by action of one or more
2political subdivisions.
SB12,47 3Section 47. 635.18 (1) of the statutes is amended to read:
SB12,22,54 635.18 (1) Every Any small employer insurer shall may actively market health
5benefit plan coverage to small employers in the state.
SB12,48 6Section 48. Chapter 636 of the statutes is created to read:
SB12,22,87 chapter 636
8 health benefit plan exchange
SB12,22,109 subchapter I
10 general provisions
SB12,22,11 11636.01 Definitions. In this chapter:
SB12,22,12 12(1) "Authority" means the Badger Health Benefit Authority.
SB12,22,15 13(2) "Educated health care consumer" means an individual who is
14knowledgeable about the health care system and who has background or experience
15in making informed decisions regarding health, medical, and scientific matters.
SB12,22,19 16(3) "Federal act" means the federal Patient Protection and Affordable Care Act
17(P.L. 111-148), as amended by the federal Health Care and Education Reconciliation
18Act of 2010 (P.L. 111-152), and any amendments to, or regulations or guidance issued
19under, those acts.
SB12,22,22 20(4) (a) Except as provided in pars. (b) to (e), "health benefit plan" means a policy,
21contract, certificate, or agreement offered or issued by a health carrier to provide,
22deliver, arrange for, pay for, or reimburse any of the costs of health care services.
SB12,22,2323 (b) "Health benefit plan" does not include any of the following:
SB12,22,2524 1. Coverage only for accident, or disability income insurance, or any
25combination of those.
SB12,23,1
12. Coverage issued as a supplement to liability insurance.
SB12,23,32 3. Liability insurance, including general liability insurance and automobile
3liability insurance.
SB12,23,44 4. Worker's compensation or similar insurance.
SB12,23,55 5. Automobile medical payment insurance.
SB12,23,66 6. Credit-only insurance.
SB12,23,77 7. Coverage for on-site medical clinics.
SB12,23,108 8. Other similar insurance coverage, specified in federal regulations issued
9under P.L. 104-191, under which benefits for health care services are secondary or
10incidental to other insurance benefits.
SB12,23,1311 (c) "Health benefit plan" does not include any of the following benefits if they
12are provided under a separate policy, certificate, or contract of insurance or otherwise
13not an integral part of the plan:
SB12,23,1414 1. Limited scope dental or vision benefits.
SB12,23,1615 2. Benefits for long-term care, nursing home care, home health care,
16community-based care, or any combination of those.
SB12,23,1817 3. Other similar, limited benefits specified in federal regulations issued under
18P.L. 104-191.
SB12,23,2519 (d) "Health benefit plan" does not include any of the following benefits if the
20benefits are provided under a separate policy, certificate, or contract of insurance,
21there is no coordination between the provision of the benefits and any exclusion of
22benefits under any group health plan maintained by the same plan sponsor, and the
23benefits are paid with respect to an event without regard to whether benefits are
24provided with respect to such an event under any group health plan maintained by
25the same plan sponsor:
SB12,24,1
11. Coverage only for a specified disease or illness.
SB12,24,22 2. Hospital indemnity or other fixed indemnity insurance.
SB12,24,43 (e) "Health benefit plan" does not include any of the following if offered as a
4separate policy, certificate, or contract of insurance:
SB12,24,65 1. Medicare supplemental health insurance as defined under section 1882 (g)
6(1) of the federal Social Security Act.
SB12,24,872. Coverage supplemental to the coverage provided under 10 USC ch. 55
8(Civilian Health and Medical Program of the Uniformed Services (CHAMPUS)).
SB12,24,109 3. Similar supplemental coverage provided to coverage under a group health
10plan.
SB12,24,17 11(5) "Health carrier" or "carrier" means an entity subject to the insurance laws
12and rules of this state, or subject to the jurisdiction of the commissioner, that
13contracts or offers to contract to provide, deliver, arrange for, pay for, or reimburse
14any of the costs of health care services, including a sickness and accident insurance
15company, a health maintenance organization, a nonprofit hospital and health service
16corporation, or any other entity providing a plan of health insurance, health benefits,
17or health services.
SB12,24,19 18(5m) "Minimum essential coverage" has the meaning given in 26 USC 5000A
19(f) (1).
SB12,24,21 20(6) "Qualified dental plan" means a limited scope dental plan that has been
21certified in accordance with s. 636.42 (5).
SB12,24,25 22(7) "Qualified employer" means a small employer that elects to make its
23full-time employees eligible for one or more qualified health plans offered through
24the SHOP Exchange and, at the option of the employer, some or all of its part-time
25employees, provided that the employer satisfies any of the following:
SB12,25,3
1(a) The employer has its principal place of business in this state and elects to
2provide coverage through the SHOP Exchange to all of its eligible employees,
3wherever employed.
SB12,25,54 (b) The employer elects to provide coverage through the SHOP Exchange to all
5of its eligible employees who are principally employed in this state.
SB12,25,8 6(8) "Qualified health plan" means a health benefit plan that has in effect a
7certification that the plan meets the criteria for certification described in section
81311 (c) of the federal act and s. 636.42.
SB12,25,10 9(9) "Qualified individual" means an individual, including a minor, who satisfies
10all of the following:
SB12,25,1211 (a) The individual is seeking to enroll in a qualified health plan offered to
12individuals through the exchange under subch. II.
SB12,25,1313 (b) The individual resides in this state.
SB12,25,1514 (c) At the time of enrollment, the individual is not incarcerated in a correctional
15facility, other than incarceration pending the disposition of charges.
SB12,25,1816 (d) The individual is, and is reasonably expected to be for the entire period for
17which enrollment is sought, a citizen or national of the United States or an alien
18lawfully present in the United States.
SB12,25,20 19(10) "Secretary" means the secretary of the federal department of health and
20human services.
SB12,25,22 21(11) "SHOP Exchange" means a small business health options program
22established under s. 636.30 (1) (q).
SB12,25,24 23(12) (a) "Small employer" means an employer that employed an average of not
24more than 100 employees during the preceding calendar year.
SB12,25,2525 (b) For purposes of this subsection, all of the following apply:
SB12,26,2
11. All persons treated as a single employer under section 414 (b), (c), (m), or (o)
2of the Internal Revenue Code shall be treated as a single employer.
SB12,26,43 2. An employer and any predecessor employer shall be treated as a single
4employer.
SB12,26,65 3. All employees shall be counted, including part-time employees and
6employees who are not eligible for coverage through the employer.
SB12,26,107 4. If an employer was not in existence during the entire preceding calendar
8year, the determination of whether that employer is a small employer shall be based
9on the average number of employees that it is reasonably expected that employer will
10employ on business days in the current calendar year.
SB12,26,1511 5. An employer that makes enrollment in qualified health plans available to
12its employees through the SHOP Exchange and that would cease to be a small
13employer by reason of an increase in the number of its employees shall continue to
14be treated as a small employer for purposes of this chapter as long as it continuously
15makes enrollment through the SHOP Exchange available to its employees.
SB12,26,1716 subchapter II
17 operation of exchange
SB12,26,21 18636.25 General matters. (1) The authority shall establish and operate a
19Wisconsin Health Benefit Exchange and shall make qualified health plans, with
20effective dates on or before January 1, 2014, available to qualified individuals and
21qualified employers.
SB12,26,23 22(2) (a) The authority may not make available any health benefit plan that is
23not a qualified health plan.
SB12,27,324 (b) The authority shall allow a health carrier to offer a plan that provides
25limited scope dental benefits meeting the requirements of section 9832 (c) (2) (A) of

1the Internal Revenue Code through the exchange, either separately or in conjunction
2with a qualified health plan, if the plan provides pediatric dental benefits meeting
3the requirements of section 1302 (b) (1) (J) of the federal act.
SB12,27,9 4(3) Neither the authority nor a carrier offering health benefit plans through
5the exchange may charge an individual a fee or penalty for termination of coverage
6if the individual enrolls in another type of minimum essential coverage because the
7individual has become newly eligible for that coverage or because the individual's
8employer-sponsored coverage has become affordable under the standards of section
936B (c) (2) (C) of the Internal Revenue Code.
SB12,27,14 10(4) The authority may enter into information-sharing agreements with federal
11and state agencies and entities operating exchanges in other states to carry out its
12responsibilities under this chapter, provided that such agreements include adequate
13protections with respect to the confidentiality of the information to be shared and
14comply with all state and federal laws and rules and regulations.
SB12,27,17 15636.30 Exchange duties and powers. (1) In addition to all other duties
16imposed under this chapter, the authority shall do all of the following relating to the
17exchange:
SB12,27,2118 (a) Implement procedures for the certification, recertification, and
19decertification, consistent with guidelines developed by the secretary under section
201311 (c) of the federal act and s. 636.42, of health benefit plans as qualified health
21plans.
SB12,27,2322 (b) Provide for the operation of a toll-free telephone hotline to respond to
23requests for assistance.
SB12,27,2524 (c) Provide for enrollment periods, as provided under section 1311 (c) (6) of the
25federal act.
SB12,28,3
1(d) Maintain an Internet site through which enrollees and prospective
2enrollees of qualified health plans may obtain standardized comparative
3information on such plans.
SB12,28,84 (e) Assign a rating to each qualified health plan offered through the exchange
5in accordance with the criteria developed by the secretary under section 1311 (c) (3)
6of the federal act, and determine each qualified health plan's level of coverage in
7accordance with regulations issued by the secretary under section 1302 (d) (2) (A) of
8the federal act.
SB12,28,119 (f) Use a standardized format for presenting health benefit options in the
10exchange, including the use of the uniform outline of coverage established under
11section 2715 of the federal Public Health Service Act (42 USC 300gg-15).
SB12,28,1312 (g) Establish quality improvement standards for health benefit plans offered
13through the exchange.
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