AB416-SSA1,54,88 3. An evaluation of the plan's operation and, effectiveness and availability.
AB416-SSA1, s. 100 9Section 100. 635.23 (4) and (5) of the statutes are amended to read:
AB416-SSA1,54,1610 635.23 (4) In the formulation of the plan, for the purpose of cost containment
11the plan board shall encourage the use, to the extent possible, of the services of health
12care providers other than physicians. The plan board shall report any
13recommendations on ways to encourage the use of the services of health care
14providers other than physicians to the chief clerk of each house of the legislature for
15distribution under s. 13.172 (3)
to the standing committees with jurisdiction over
16health insurance under s. 13.172 (3).
AB416-SSA1,54,20 17(5) The plan board may submit any recommendations for legislation to improve
18the plan to the chief clerk of each house of the legislature for distribution under s.
1913.172 (3)
to the standing committees with jurisdiction over health insurance under
20s. 13.172 (3)
.
AB416-SSA1, s. 101 21Section 101. 635.25 (title) of the statutes is amended to read:
AB416-SSA1,54,22 22635.25 (title) Eligibility for participation in plan.
AB416-SSA1, s. 102 23Section 102. 635.25 (1) (a) (intro.) of the statutes is amended to read:
AB416-SSA1,54,2524 635.25 (1) (a) (intro.) To be eligible to participate in the plan by purchasing
25purchase a policy under this subchapter containing the basic benefits, an employer:
AB416-SSA1, s. 103
1Section 103. 635.25 (1) (b) of the statutes is amended to read:
AB416-SSA1,55,52 635.25 (1) (b) Except as provided in ss. 645.43 and 646.35, an a small employer
3that purchases a policy under this subchapter containing the basic benefits and that
4ceases to be eligible to participate in the plan during a policy period shall retain
5coverage under the plan policy to the end of the policy period.
AB416-SSA1, s. 104 6Section 104. 635.25 (1m) of the statutes is amended to read:
AB416-SSA1,55,107 635.25 (1m) Notwithstanding sub. (1), an a small employer is not eligible to
8participate in the plan purchase a policy under this subchapter containing the basic
9benefits
if all of the individuals to be covered under the plan policy may be covered
10by a single under an individual policy providing individual single or family coverage.
AB416-SSA1, s. 105 11Section 105. 635.25 (2) of the statutes is amended to read:
AB416-SSA1,55,1412 635.25 (2) Employes and dependents. (a) All eligible employes of an eligible
13small employer that participates in the plan purchases a policy under this
14subchapter
are eligible for coverage under the plan policy, subject to the policy terms.
AB416-SSA1,55,1615 (b) Any dependent of an eligible employe who is covered under the plan policy
16is also eligible for coverage under the plan policy, subject to the policy terms.
AB416-SSA1, s. 106 17Section 106. 635.254 of the statutes is amended to read:
AB416-SSA1,55,22 18635.254 Employer premium contribution. (1) An A small employer that
19participates in the plan purchases a policy under this subchapter shall pay a
20premium contribution of not less than 50% of the premium rate on behalf of an
21eligible employe with individual single coverage and not less than 40% of the
22premium rate on behalf of an eligible employe with family coverage.
AB416-SSA1,55,25 23(2) An A small employer under sub. (1) shall withhold from the earnings of an
24employe with coverage under the plan policy under this subchapter the amount of
25premium not contributed by the small employer under sub. (1).
AB416-SSA1,56,5
1(3) For an eligible employe who obtains coverage under the health insurance
2risk-sharing plan under s. 619.12 (2) (e) 2., an a small employer under sub. (1) shall
3pay a premium contribution to the health insurance risk-sharing plan that is equal
4to the amount that the small employer would pay on behalf of the employe for
5coverage under the plan policy under this subchapter.
AB416-SSA1, s. 107 6Section 107. 635.26 of the statutes is repealed.
AB416-SSA1, s. 108 7Section 108. 635.272 (1) of the statutes is amended to read:
AB416-SSA1,56,128 635.272 (1) Contracting health care providers. A health care provider that
9contracts with a small employer insurer to provide services to individuals with
10coverage under the plan a policy under this subchapter shall accept amounts payable
11under the contract for the basic benefits under the policy as payment in full for those
12services. This subsection does not affect liability for deductibles or copayments.
AB416-SSA1, s. 109 13Section 109. 635.28 of the statutes is amended to read:
AB416-SSA1,56,17 14635.28 Liability of state and plan board. Neither the state nor the plan
15board is liable for any obligation arising under the plan. Plan board members are
16immune from civil liability for acts or omissions while performing in the performance
17of
their duties under this subchapter.
AB416-SSA1, s. 110 18Section 110. 635.29 (title) of the statutes is repealed and recreated to read:
AB416-SSA1,56,19 19635.29 (title) Applicability of health insurance mandates.
AB416-SSA1, s. 111 20Section 111. Nonstatutory provisions.
AB416-SSA1,57,2 21(1)  Risk adjustment committee. The commissioner of insurance shall appoint
22a committee on risk adjustment under section 15.04 (1) (c) of the statutes, consisting
23of 5 to 8 members, to advise the commissioner on, and to assist the commissioner in
24developing rules for, the group risk adjustment mechanism under section 635.07 (4)

1of the statutes, as affected by this act. The commissioner shall appoint at least 5
2representatives of insurers to be members of the committee.
AB416-SSA1,57,10 3(2)  Risk adjustment mechanism emergency rule-making authority. Using the
4procedure under section 227.24 of the statutes, the commissioner of insurance may
5promulgate rules under section 635.07 (4) (e) of the statutes, as affected by this act,
6for the period before the effective date of the permanent rules promulgated under
7section 635.07 (4) (e) of the statutes, as affected by this act, but not to exceed the
8period authorized under section 227.24 (1) (c) and (2) of the statutes.
9Notwithstanding section 227.24 (1) and (3) of the statutes, the commissioner is not
10required to make a finding of emergency.
AB416-SSA1,57,11 11(3)  Health insurance risk-sharing plan board member terms.
AB416-SSA1,57,15 12(a)  Notwithstanding section 15.07 (1) (c) of the statutes and section 619.15 (1)
13of the statutes, as affected by this act, the terms of the 7 appointed members
14currently serving on the board of governors of the health insurance risk-sharing
15plan shall expire on July 1, 1996.
AB416-SSA1,57,18 16(b)  Notwithstanding section 619.15 (1) of the statutes, as affected by this act,
17the new members of the board of governors of the health insurance risk-sharing plan
18shall be appointed for the following terms:
AB416-SSA1,57,21 191. One representative of an insurer, one representative of a health care provider
20and one public member, to be determined by the commissioner, for terms expiring on
21May 1, 1997.
AB416-SSA1,57,24 222. One representative of an insurer, one representative of a health care provider
23and one public member, to be determined by the commissioner, for terms expiring on
24May 1, 1998.
AB416-SSA1,58,3
13. One representative of an insurer, one representative of a health care provider
2and one public member, to be determined by the commissioner, for terms expiring on
3May 1, 1999.
AB416-SSA1,58,4 4(4)  Study by health insurance risk-sharing plan board.
AB416-SSA1,58,7 5(a)  The board of governors of the health insurance risk-sharing plan shall
6study alternatives for reducing costs under the plan through the use of managed care
7plans. The board shall study at least all of the following:
AB416-SSA1,58,10 81.  The feasibility of including plan enrollees in the program administered by
9the department of health and social services that provides health care services to
10medical assistance recipients through managed care providers.
AB416-SSA1,58,13 112.  The development of a competitive bid process for the provision of covered
12services to plan enrollees. As part of this requirement, the board shall consider all
13of the following competitive bidding and pricing alternatives:
AB416-SSA1,58,14 14a.  Fully capitated bids.
AB416-SSA1,58,18 15b.  Bids under which the health insurance risk-sharing plan and the health
16care plan providing the covered services share the risk that costs will exceed a
17predetermined amount and the savings when costs are below a predetermined
18amount.
AB416-SSA1,58,19 19c.  Bids under which only specified services are provided on a capitated basis.
AB416-SSA1,58,21 20d.  Bids under which only identified groups of plan enrollees are covered on a
21capitated basis.
AB416-SSA1,58,24 22(b)  The board shall submit a report of the results of the study and its
23recommendations to the legislature under section 13.172 (2) of the statutes no later
24than July 1, 1996.
AB416-SSA1,59,5
1(5)  Rules on health insurance risk-sharing plan managed care initiative.
2The board of governors of the health insurance risk-sharing plan shall submit in
3proposed form the rules required under section 619.145 (1m) of the statutes, as
4created by this act, to the legislative council staff under section 227.15 (1) of the
5statutes no later than January 1, 1997.
AB416-SSA1,59,6 6(6)  Study on establishing a basic health insurance plan.
AB416-SSA1,59,9 7(a)  The department of health and social services and the office of the
8commissioner of insurance shall jointly study the establishment of a basic health
9insurance plan. The study shall include consideration of all of the following:
AB416-SSA1,59,13 101. The feasibility of including coverage under the basic health insurance plan
11for different groups of people, including low-income persons, persons with coverage
12under the health insurance risk-sharing plan and recipients of medical assistance
13or health care benefits under another public assistance program.
AB416-SSA1,59,14 142.  The benefits to be provided under the basic health insurance plan.
AB416-SSA1,59,18 153.  A plan and a timetable for phasing out the imposition of surcharges under
16section 619.13 of the statutes, as affected by this act, for the health insurance
17risk-sharing plan and for replacing the lost revenues with other funds, including
18premiums collected for the basic health insurance plan or state or federal funds.
AB416-SSA1,59,22 19(b)  The department of health and social services and the office of the
20commissioner of insurance shall submit a report of the study with their
21recommendations, addressing each of the items under paragraph (a), to the
22legislature under section 13.172 (2) of the statutes no later than January 1, 1997.
AB416-SSA1,59,23 23(7)  Evaluation of market reforms.
AB416-SSA1,60,3
1(a) The commissioner of insurance shall evaluate the effectiveness of the health
2insurance market reforms under chapter 635 of the statutes, as affected by this act,
3including the effectiveness of the reforms with respect to all of the following:
AB416-SSA1,60,5 41. Accessibility of health insurance coverage, including such accessibility for
5persons who reside in rural areas of the state.
AB416-SSA1,60,6 62.  Availability of health insurance coverage for uninsured persons.
AB416-SSA1,60,7 73.  Affordability of health insurance coverage.
AB416-SSA1,60,10 8(b) The commissioner shall submit a report of the results of the evaluation and
9any recommendations to the legislature under section 13.172 (2) of the statutes no
10later than the first day of the 24th month beginning after publication.
AB416-SSA1, s. 112 11Section 112 . Initial applicability.
AB416-SSA1,60,22 12(1) Health insurance market reform. The treatment of sections 40.51 (8) and
13(8m), 111.70 (4) (o), 111.91 (2) (L), 120.13 (2) (g), 185.983 (1g), 625.12 (2), 628.34 (3)
14(a) and (b), 632.76 (2) (a), 632.896 (4), 635.01, 635.02, 635.03, 635.04, 635.05, 635.07,
15635.09, 635.11 (intro.), (1) and (4), 635.13, 635.15, 635.16, 635.17, 635.18 (title), (1)
16(a) and (b), (2), (3), (4), (5), (6), (7) and (8), 635.20 (1c), (1m), (2) and (13), 635.23 (1)
17(a), (d), (dp), (dr) and (e) (intro.), 1., 2. and 3., (4) and (5), 635.25 (1) (a) (intro.) and
18(b), (1m) and (2), 635.254, 635.26, 635.272 (1) and 635.28 of the statutes, the
19renumbering of section 635.18 (1) of the statutes, the amendment of section 66.184
20(1) of the statutes, the repeal and recreation of section 111.70 (1) (a) (by Section 14
21of the statutes and the creation of section 60.23 (25) (h) and (i) of the statutes first
22apply to all of the following:
AB416-SSA1,60,25 23(a)  Except as provided in paragraphs (b) and (c), health benefit plans that are
24issued or renewed, and self-insured health plans that are established, extended,
25modified or renewed, on the effective date of this paragraph.
AB416-SSA1,61,3
1(b) Health benefit plans covering employes who are affected by a collective
2bargaining agreement containing provisions inconsistent with this act that are
3issued or renewed on the earlier of the following:
AB416-SSA1,61,4 41.  The day on which the collective bargaining agreement expires.
AB416-SSA1,61,6 52.  The day on which the collective bargaining agreement is extended, modified
6or renewed.
AB416-SSA1,61,9 7(c) Self-insured health plans covering employes who are affected by a collective
8bargaining agreement containing provisions inconsistent with this act that are
9established, extended, modified or renewed on the earlier of the following:
AB416-SSA1,61,10 101.  The day on which the collective bargaining agreement expires.
AB416-SSA1,61,12 112.  The day on which the collective bargaining agreement is extended, modified
12or renewed.
AB416-SSA1, s. 113 13Section 113. Effective dates. This act takes effect on the day after
14publication, except as follows:
AB416-SSA1,62,2 15(1)  Health insurance market reform. The treatment of sections 40.51 (8) and
16(8m), 111.70 (4) (o), 111.91 (2) (L), 120.13 (2) (g), 185.983 (1g), 625.12 (2), 628.34 (3)
17(a) and (b), 632.76 (2) (a), 632.896 (4), 635.01, 635.02, 635.03, 635.04, 635.05, 635.07,
18635.09, 635.11 (intro.), (1) and (4), 635.13, 635.15, 635.16, 635.17, 635.18 (title), (1)
19(a) and (b), (2), (3), (4), (5), (6), (7) and (8), 635.20 (1c), (1m), (2) and (13), 635.23 (1)
20(a), (d), (dp), (dr) and (e) (intro.), 1., 2. and 3., (4) and (5), 635.25 (title), (1) (a) (intro.)
21and (b), (1m) and (2), 635.254, 635.26, 635.272 (1), 635.28 and 635.29 (title) and
22chapter 635 (title) of the statutes, the renumbering of section 635.18 (1) of the
23statutes, the amendment of section 66.184 (1) of the statutes, the repeal and
24recreation of section 111.70 (1) (a) (by Section 15) of the statutes, the creation of

1section 60.23 (25) (h) and (i) of the statutes and Section 112 of this act take effect on
2the first day of the 12th month beginning after publication.
AB416-SSA1,62,12 3(2) Health insurance risk-sharing plan surcharge. The treatment of sections
4619.14 (5) (d), 619.145 (1) and (1m), 619.15 (1) and 619.165 (1) (a) and (2) of the
5statutes, the repeal of sections 619.145 (3) (e) and (4) and 619.15 (4) (e) of the statutes,
6the renumbering of section 66.184 of the statutes, the renumbering and amendment
7of section 60.23 (25) of the statutes, the amendment of sections 111.70 (1) (a), 619.135
8(2) and (3), 619.15 (3) (c) and 619.175 of the statutes, the repeal and recreation of
9sections 619.10 (3m) (by Section 27 ), 619.13 (by Section 29 ) and 619.15 (4) (c) (by
10Section 53) of the statutes and the creation of sections 40.51 (8c), 60.23 (25) (a),
1166.184 (2), 111.70 (4) (n), 111.91 (2) (k), 120.13 (2) (gm) and 619.15 (3) (bc) and (bm)
12of the statutes take effect on July 1, 1996.
AB416-SSA1,62,22 13(3)  Invalid surcharge and insurer assessment. The repeal of sections 40.51
14(8c), 60.23 (25) (a), 66.184 (2), 111.70 (4) (n), 111.91 (2) (k), 120.13 (2) (gm) and 619.15
15(3) (bc) and (bm) of the statutes, the repeal and recreation of sections 111.70 (1) (a)
16(by Section 16), 619.10 (3m) (by Section 28 ), 619.13 (by Section 30 ), 619.135 (2) (by
17Section 32) and (3) (by Section 35 ), 619.15 (3) (c) and (4) (c) (by Section 54) and
18619.175 (by Section 62 ) of the statutes and the creation of sections 619.145 (3) (e)
19and (4) and 619.15 (4) (e) of the statutes take effect on the date on which the
20commissioner of insurance certifies to the revisor of statutes under section 619.13 (6)
21(b) of the statutes, as affected by this act, that the surcharge or its application is
22invalid with respect to all persons.
AB416-SSA1,63,3 23(4)  Health insurance risk-sharing plan waiver or exemption. The repeal and
24recreation of sections 619.135 (2) (by Section 33) and (3) (by Section 36) and 619.175
25(by Section 63) of the statutes takes effect on the day after 2 years after the date on

1which the commissioner of insurance certifies to the revisor of statutes under section
2619.13 (6) (b) of the statutes, as affected by this act, that the surcharge or its
3application is invalid with respect to all persons.
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