This bill prohibits a group health benefit plan, including a self-insured
governmental health plan, from imposing a preexisting condition exclusion. The bill
also prohibits an individual health insurance policy, known in the bill as a disability
insurance policy, from reducing or denying a claim or loss incurred or disability
commencing under the policy on the ground that a disease or physical condition
existed prior to the effective date of coverage. The bill also prohibits a group or
individual health insurance policy or a self-insured governmental health plan from

considering whether an individual, including a dependent, who would be covered
under the plan has a preexisting condition for the purpose of setting any deductibles,
copayments, or coinsurance under the policy or plan.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB363,1 1Section 1. 40.51 (8) of the statutes is amended to read:
AB363,2,62 40.51 (8) Every health care coverage plan offered by the state under sub. (6)
3shall comply with ss. 631.89, 631.90, 631.93 (2), 631.95, 632.72 (2), 632.728, 632.746
4(1) to (8) and (10), 632.747, 632.748, 632.798, 632.83, 632.835, 632.85, 632.853,
5632.855, 632.867, 632.87 (3) to (6), 632.885, 632.89, 632.895 (5m) and (8) to (17), and
6632.896.
AB363,2 7Section 2. 40.51 (8m) of the statutes is amended to read:
AB363,2,118 40.51 (8m) Every health care coverage plan offered by the group insurance
9board under sub. (7) shall comply with ss. 631.95, 632.728, 632.746 (1) to (8) and (10),
10632.747, 632.748, 632.798, 632.83, 632.835, 632.85, 632.853, 632.855, 632.867,
11632.885, 632.89, and 632.895 (11) to (17).
AB363,3 12Section 3. 66.0137 (4) of the statutes is amended to read:
AB363,2,1913 66.0137 (4) Self-insured health plans. If a city, including a 1st class city, or
14a village provides health care benefits under its home rule power, or if a town
15provides health care benefits, to its officers and employees on a self-insured basis,
16the self-insured plan shall comply with ss. 49.493 (3) (d), 631.89, 631.90, 631.93 (2),
17632.728, 632.746 (1), 632.746 (10) (a) 2. and (b) 2., 632.747 (3), 632.798, 632.85,
18632.853, 632.855, 632.867, 632.87 (4), (5), and (6), 632.885, 632.89, 632.895 (9) to
19(17), 632.896, and 767.513 (4).
AB363,4
1Section 4. 120.13 (2) (g) of the statutes is amended to read:
AB363,3,52 120.13 (2) (g) Every self-insured plan under par. (b) shall comply with ss.
349.493 (3) (d), 631.89, 631.90, 631.93 (2), 632.728, 632.746 (1), 632.746 (10) (a) 2. and
4(b) 2., 632.747 (3), 632.798, 632.85, 632.853, 632.855, 632.867, 632.87 (4), (5), and (6),
5632.885, 632.89, 632.895 (9) to (17), 632.896, and 767.513 (4).
AB363,5 6Section 5. 185.983 (1) (intro.) of the statutes is amended to read:
AB363,3,147 185.983 (1) (intro.) Every voluntary nonprofit health care plan operated by a
8cooperative association organized under s. 185.981 shall be exempt from chs. 600 to
9646, with the exception of ss. 601.04, 601.13, 601.31, 601.41, 601.42, 601.43, 601.44,
10601.45, 611.26, 611.67, 619.04, 623.11, 623.12, 628.34 (10), 631.17, 631.89, 631.93,
11631.95, 632.72 (2), 632.728, 632.745 to 632.749, 632.775, 632.79, 632.795, 632.798,
12632.85, 632.853, 632.855, 632.867, 632.87 (2), (2m), (3), (4), (5), and (6), 632.885,
13632.89, 632.895 (5) and (8) to (17), 632.896, and 632.897 (10) and chs. 609, 620, 630,
14635, 645, and 646, but the sponsoring association shall:
AB363,6 15Section 6. 609.847 of the statutes is created to read:
AB363,3,18 16609.847 Preexisting condition discrimination prohibited. Limited
17service health organizations, preferred provider plans, and defined network plans
18are subject to s. 632.728.
AB363,7 19Section 7. 625.12 (1) (a) of the statutes is amended to read:
AB363,3,2120 625.12 (1) (a) Past and prospective loss and expense experience within and
21outside of this state, except as provided in s. 632.728.
AB363,8 22Section 8. 625.12 (1) (e) of the statutes is amended to read:
AB363,3,2423 625.12 (1) (e) Subject to s. ss. 632.365 and 632.728, all other relevant factors,
24including the judgment of technical personnel.
AB363,9 25Section 9. 625.12 (2) of the statutes is amended to read:
AB363,4,9
1625.12 (2) Classification. Risks Except as provided in s. 632.728, risks may
2be classified in any reasonable way for the establishment of rates and minimum
3premiums, except that no classifications may be based on race, color, creed or
4national origin, and classifications in automobile insurance may not be based on
5physical condition or developmental disability as defined in s. 51.01 (5). Subject to
6s. ss. 632.365 and 632.728, rates thus produced may be modified for individual risks
7in accordance with rating plans or schedules that establish reasonable standards for
8measuring probable variations in hazards, expenses, or both. Rates may also be
9modified for individual risks under s. 625.13 (2).
AB363,10 10Section 10. 625.15 (1) of the statutes is amended to read:
AB363,4,1811 625.15 (1) Rate making. An Except as provided in s. 632.728, an insurer may
12itself establish rates and supplementary rate information for one or more market
13segments based on the factors in s. 625.12 and, if the rates are for motor vehicle
14liability insurance, subject to s. 632.365, or the insurer may use rates and
15supplementary rate information prepared by a rate service organization, with
16average expense factors determined by the rate service organization or with such
17modification for its own expense and loss experience as the credibility of that
18experience allows.
AB363,11 19Section 11. 628.34 (3) (a) of the statutes is amended to read:
AB363,5,220 628.34 (3) (a) No insurer may unfairly discriminate among policyholders by
21charging different premiums or by offering different terms of coverage except on the
22basis of classifications related to the nature and the degree of the risk covered or the
23expenses involved, subject to ss. 632.365, 632.728, 632.746 and 632.748. Rates are
24not unfairly discriminatory if they are averaged broadly among persons insured

1under a group, blanket or franchise policy, and terms are not unfairly discriminatory
2merely because they are more favorable than in a similar individual policy.
AB363,12 3Section 12. 632.728 of the statutes is created to read:
AB363,5,5 4632.728 Premiums and cost-sharing discrimination prohibited for
5preexisiting conditions.
(1) Definition. In this section:
AB363,5,66 (a) “Disability insurance policy” has the meaning given in s. 632.895 (1) (a).
AB363,5,77 (b) “Self-insured health plan” has the meaning given in s. 632.85 (1) (c).
AB363,5,13 8(2) Prohibition. For the purpose of setting rates or premiums for coverage
9under a group or individual disability insurance policy or a self-insured health plan
10and for the purpose of setting any deductibles, copayments, or coinsurance under a
11group or individual disability insurance policy or a self-insured health plan, the
12policy or plan may not consider whether an individual, including a dependent, who
13would be covered under the plan has a preexisting condition.
AB363,13 14Section 13. 632.746 (1) (a) of the statutes is renumbered 632.746 (1) and
15amended to read:
AB363,5,2216 632.746 (1) Subject to subs. (2) and (3), an An insurer that offers a group health
17benefit plan may, with respect to a participant or beneficiary under the plan, not
18impose a preexisting condition exclusion only if the exclusion relates to a condition,
19whether physical or mental, regardless of the cause of the condition, for which
20medical advice, diagnosis, care or treatment was recommended or received within
21the 6-month period ending on the participant's or beneficiary's enrollment date
22under the plan
on a participant or beneficiary under the plan.
AB363,14 23Section 14. 632.746 (1) (b) of the statutes is repealed.
AB363,15 24Section 15. 632.746 (2) (a) of the statutes is amended to read:
AB363,6,3
1632.746 (2) (a) An insurer offering a group health benefit plan may not treat
2genetic information as a preexisting condition under sub. (1) without a diagnosis of
3a condition related to the information
.
AB363,16 4Section 16. 632.746 (2) (c), (d) and (e) of the statutes are repealed.
AB363,17 5Section 17. 632.746 (3) (a) of the statutes is repealed.
AB363,18 6Section 18 . 632.746 (3) (d) 1. of the statutes is renumbered 632.746 (3) (d).
AB363,19 7Section 19 . 632.746 (3) (d) 2. and 3. of the statutes are repealed.
AB363,20 8Section 20 . 632.746 (5) of the statutes is repealed.
AB363,21 9Section 21. 632.746 (8) (a) (intro.) of the statutes is amended to read:
AB363,6,1310 632.746 (8) (a) (intro.) A health maintenance organization that offers a group
11health benefit plan and that does not impose any preexisting condition exclusion
12under sub. (1)
with respect to a particular coverage option may impose an affiliation
13period for that coverage option, but only if all of the following apply:
AB363,22 14Section 22. 632.76 (2) (a) and (ac) 1. and 2. of the statutes are amended to read:
AB363,6,2215 632.76 (2) (a) No claim for loss incurred or disability commencing after 2 years
16from the date of issue of the policy may be reduced or denied on the ground that a
17disease or physical condition existed prior to the effective date of coverage, unless the
18condition was excluded from coverage by name or specific description by a provision
19effective on the date of loss. This paragraph does not apply to a group health benefit
20plan, as defined in s. 632.745 (9), which is subject to s. 632.746 , a disability insurance
21policy, as defined in s. 632.895 (1) (a), or a self-insured health plan, as defined in s.
22632.85 (1) (c)
.
AB363,7,323 (ac) 1. Notwithstanding par. (a), no No claim or loss incurred or disability
24commencing after 12 months from the date of issue of under an individual disability
25insurance policy, as defined in s. 632.895 (1) (a), may be reduced or denied on the

1ground that a disease or physical condition existed prior to the effective date of
2coverage, unless the condition was excluded from coverage by name or specific
3description by a provision effective on the date of the loss
.
AB363,7,94 2. Except as provided in subd. 3., an An individual disability insurance policy,
5as defined in s. 632.895 (1) (a), other than a short-term policy subject to s. 632.7495
6(4) and (5),
may not define a preexisting condition more restrictively than a condition,
7whether physical or mental, regardless of the cause of the condition, for which
8medical advice, diagnosis, care, or treatment was recommended or received within
912 months before the effective date of coverage
.
AB363,23 10Section 23. 632.76 (2) (ac) 3. of the statutes is repealed.
AB363,24 11Section 24. 632.795 (4) (a) of the statutes is amended to read:
AB363,7,2312 632.795 (4) (a) An insurer subject to sub. (2) shall provide coverage under the
13same policy form and for the same premium as it originally offered in the most recent
14enrollment period, subject only to the medical underwriting used in that enrollment
15period. Unless otherwise prescribed by rule, the insurer may apply deductibles,
16preexisting condition limitations, waiting periods , or other limits only to the extent
17that they would have been applicable had coverage been extended at the time of the
18most recent enrollment period and with credit for the satisfaction or partial
19satisfaction of similar provisions under the liquidated insurer's policy or plan. The
20insurer may exclude coverage of claims that are payable by a solvent insurer under
21insolvency coverage required by the commissioner or by the insurance regulator of
22another jurisdiction. Coverage shall be effective on the date that the liquidated
23insurer's coverage terminates.
AB363,25 24Section 25. 632.897 (11) (a) of the statutes is amended to read:
AB363,8,9
1632.897 (11) (a) Notwithstanding subs. (2) to (10), the commissioner may
2promulgate rules establishing standards requiring insurers to provide continuation
3of coverage for any individual covered at any time under a group policy who is a
4terminated insured or an eligible individual under any federal program that
5provides for a federal premium subsidy for individuals covered under continuation
6of coverage under a group policy, including rules governing election or extension of
7election periods, notice, rates, premiums, premium payment, application of
8preexisting condition exclusions,
election of alternative coverage, and status as an
9eligible individual, as defined in s. 149.10 (2t), 2011 stats.
AB363,26 10Section 26 . Initial applicability.
AB363,8,1111 (1) Preexisting conditions.
AB363,8,1412 (a) For policies and plans containing provisions inconsistent with this act, the
13act first applies to policy or plan years beginning on January 1 of the year following
14the year in which this paragraph takes effect, except as provided in paragraph (b).
AB363,8,1915 (b) For policies or plans that are affected by a collective bargaining agreement
16containing provisions inconsistent with this act, this act first applies to policy or plan
17years beginning on the effective date of this paragraph or on the day on which the
18collective bargaining agreement is newly established, extended, modified, or
19renewed, whichever is later.
AB363,27 20Section 27 . Effective date.
AB363,8,2221 (1) This act takes effect on the first day of the 4th month beginning after
22publication.
AB363,8,2323 (End)
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