LRB-1238/1
RAC&PJK:wlj&kg:km
1999 - 2000 LEGISLATURE
January 28, 1999 - Introduced by Representatives Musser, Turner, Ryba, Bock,
La Fave, Sykora, Ainsworth, Wasserman, Hebl, Huber, Goetsch, Olsen,
Hoven, Handrick, Lassa, Kreuser, Pocan, Miller, Ziegelbauer, Sinicki,
Berceau, Albers, Pettis, Hundertmark, J. Lehman, Gronemus, Staskunas,
Seratti, Skindrud, Boyle, Kestell, Plouff
and Porter, cosponsored by
Senators Moen, Breske, Baumgart, Wirch, Plache, Robson, George, Decker,
Clausing, Fitzgerald
and Roessler. Referred to Committee on Small
Business and Economic Development.
AB63,1,9 1An Act to repeal 13.94 (1) (p), 15.07 (1) (b) 21., 15.165 (5), 20.515 (2) (title),
220.515 (2) (a), 20.515 (2) (g) and subchapter X of chapter 40 [precedes 40.98];
3to amend 40.02 (26) (intro.), 40.02 (26) (intro.), 40.02 (28) and 40.02 (28); and
4to create 13.94 (1) (p), 15.07 (1) (b) 21., 15.165 (5), 20.515 (2) (title), 20.515 (2)
5(a), 20.515 (2) (g) and subchapter X of chapter 40 [precedes 40.98] of the
6statutes; relating to: requiring the department of employe trust funds to
7establish a health care coverage plan for employers in the private sector,
8creating a private employer health care coverage board and making an
9appropriation.
Analysis by the Legislative Reference Bureau
This bill requires the department of employe trust funds (DETF), after
consulting with the departments of commerce and health and family services and the
office of the commissioner of insurance, to design, establish and administer a health
care coverage plan for employers in the private sector. The bill also creates a private
employer health care coverage board (PEHCCB) that is responsible for approving the
health care coverage plan before DETF may implement the plan. The membership
of the PEHCCB consists of the secretary of employe trust funds, the secretary of

health and family services, a member who represents health maintenance
organizations, a member who represents hospitals, a member who represents
insurance agents, a member who represents insurers, two employes who are eligible
to receive health care coverage under the plan and whose employer employs not more
than 50 employes, two members who represent employers that employ not more than
50 employes and who are eligible to offer health care coverage under the plan, a
member who is a physician and two members who represent the public interest.
The key features of the private employer health care coverage plan are as
follows:
1. Any employer in the private sector that employs two or more employes is
eligible to participate in the plan.
2. Any employer that participates in the plan must offer the health care
coverage to all of its permanent employes who have a normal work week of 30 or more
hours and may offer the coverage to any of its other employes.
3. Any employer that participates in the plan must provide health care
coverage under the plan to at least 50% (or a higher percentage specified by the
PEHCCB) of its permanent employes who have a normal work week of 30 or more
hours.
4. Any employer that participates must pay, on behalf of each employe who has
coverage, at least 50% but not more than 100% of the lowest premium that would be
available to the employer for the coverage.
5. Any employer that participates in the plan and that voluntarily terminates
the coverage must wait at least three years before the employer may participate
again.
6. Any insurer that offers the plan must provide coverage under the plan to any
employer that applies for coverage, without regard to the health condition or claims
experience of any individual who would have coverage, as long as the employer pays
the premium and agrees to comply with plan requirements.
7. The health care coverage plan is subject to all provisions of the state
insurance code to the same extent as any other group health benefit plan that is
offered in the private sector.
8. The plan may not be combined with any health care coverage plan offered
by DETF to state employes.
9. The plan may only be sold by licensed insurance agents in this state.
10. DETF is prohibited from selling any health care coverage under the plan
or enrolling any employe under the plan, but DETF may publicize the availability
of the health care coverage plan for employers.
11. DETF is authorized to contract with any person to provide services relating
to the administration of the health care coverage plan.
12. The commission rate for the sale of the plan is set by the PEHCCB.
13. DETF is required to charge employers who participate in the plan a fee to
cover the costs of designing, establishing and administering the plan.
14. The plan is sunset on January 1, 2007.
Under the bill, the PEHCCB is required to report annually to the governor and
the legislature on the operation of the plan. In addition, no later than January 1,

2005, the PEHCCB must submit a report to the governor and the legislature that
offers recommendations as to whether DETF should continue to administer the plan,
whether a different state agency should administer the plan or whether the plan
should be administered by a private nonprofit organization. If the PEHCCB
recommends that a different state agency administer the health care coverage plan
or that the health care coverage plan be administered by a private nonprofit
organization, the PEHCCB must submit proposed legislation relating to the
recommendation at the time the PEHCCB submits its report.
For further information see the state 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:
AB63, s. 1 1Section 1. 13.94 (1) (p) of the statutes is created to read:
AB63,3,52 13.94 (1) (p) No later than January 1, 2005, prepare a program evaluation audit
3of the private employer health care coverage plan established under subch. X of ch.
440. The legislative audit bureau shall file a copy of the audit report under this
5paragraph with the distributees specified in par. (b).
AB63, s. 2 6Section 2. 13.94 (1) (p) of the statutes, as created by 1999 Wisconsin Act ....
7(this act), is repealed.
AB63, s. 3 8Section 3. 15.07 (1) (b) 21. of the statutes is created to read:
AB63,3,99 15.07 (1) (b) 21. Private employer health care coverage board.
AB63, s. 4 10Section 4. 15.07 (1) (b) 21. of the statutes, as created by 1999 Wisconsin Act
11.... (this act), is repealed.
AB63, s. 5 12Section 5. 15.165 (5) of the statutes is created to read:
AB63,3,1713 15.165 (5) Private employer health care coverage board. (a) There is created
14in the department of employe trust funds a private employer health care coverage
15board consisting of the secretary of employe trust funds or his or her designee, the
16secretary of health and family services or his or her designee and the following
17members appointed for 3-year terms:
AB63,4,1
11. One member who represents health maintenance organizations.
AB63,4,22 2. One member who represents hospitals.
AB63,4,33 3. One member who represents insurance agents, as defined in s. 628.02 (4).
AB63,4,54 4. Two members who are employes eligible to receive health care coverage
5under subch. X of ch. 40 and whose employer employs not more than 50 employes.
AB63,4,66 5. One member who represents insurers.
AB63,4,97 6. Two members who are, or who represent, employers that employ not more
8than 50 employes and who are eligible to offer health care coverage under subch. X
9of ch. 40.
AB63,4,1010 7. One member who is a physician, as defined in s. 448.01 (5).
AB63,4,1111 8. Two members who represent the public interest.
AB63,4,1312 (b) The secretary of employe trust funds or his or her designee and the secretary
13of health and family services or his or her designee shall be nonvoting members.
AB63, s. 6 14Section 6. 15.165 (5) of the statutes, as created by 1999 Wisconsin Act .... (this
15act), is repealed.
AB63, s. 7 16Section 7. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
17the following amounts for the purposes indicated: - See PDF for table PDF
AB63, s. 8 18Section 8. 20.515 (2) (title) of the statutes is created to read:
AB63,4,1919 20.515 (2) (title) Private employer health care coverage plan.
AB63, s. 9
1Section 9. 20.515 (2) (title) of the statutes, as created by 1999 Wisconsin Act
2.... (this act), is repealed.
AB63, s. 10 3Section 10. 20.515 (2) (a) of the statutes is created to read:
AB63,5,74 20.515 (2) (a) Private employer health care coverage plan; start-up costs. The
5amounts in the schedule for the start-up costs for designing, establishing and
6administering the private employer health care coverage plan under subch. X of ch.
740.
AB63, s. 11 8Section 11. 20.515 (2) (a) of the statutes, as created by 1999 Wisconsin Act ....
9(this act), is repealed.
AB63, s. 12 10Section 12. 20.515 (2) (g) of the statutes is created to read:
AB63,5,1411 20.515 (2) (g) Private employer health care coverage plan. All moneys received
12under subch. X of ch. 40 from employers who elect to participate in the private
13employer health care coverage plan under subch. X of ch. 40, for the costs of
14designing, establishing and administering the plan.
AB63, s. 13 15Section 13. 20.515 (2) (g) of the statutes, as created by 1999 Wisconsin Act ....
16(this act), is repealed.
AB63, s. 14 17Section 14 . 40.02 (26) (intro.) of the statutes is amended to read:
AB63,5,2518 40.02 (26) (intro.) "Employe" means any person who receives earnings as
19payment for personal services rendered for the benefit of any employer including
20officers of the employer, except as provided in subch. X. An employe is deemed to
21have separated from the service of an employer at the end of the day on which the
22employe last performed services for the employer, or, if later, the day on which the
23employe-employer relationship is terminated because of the expiration or
24termination of leave without pay, sick leave, vacation or other leave of absence. A
25person shall not be considered an employe if a person:
AB63, s. 15
1Section 15 . 40.02 (26) (intro.) of the statutes, as affected by 1999 Wisconsin
2Act .... (this act), is amended to read:
AB63,6,103 40.02 (26) (intro.) "Employe" means any person who receives earnings as
4payment for personal services rendered for the benefit of any employer including
5officers of the employer, except as provided in subch. X. An employe is deemed to
6have separated from the service of an employer at the end of the day on which the
7employe last performed services for the employer, or, if later, the day on which the
8employe-employer relationship is terminated because of the expiration or
9termination of leave without pay, sick leave, vacation or other leave of absence. A
10person shall not be considered an employe if a person:
AB63, s. 16 11Section 16 . 40.02 (28) of the statutes is amended to read:
AB63,6,2012 40.02 (28) "Employer" means the state, including each state agency, any
13county, city, village, town, school district, other governmental unit or
14instrumentality of 2 or more units of government now existing or hereafter created
15within the state and, any federated public library system established under s. 43.19
16whose territory lies within a single county with a population of 500,000 or more and
17a local exposition district created under subch. II of ch. 229
, except as provided under
18ss. 40.51 (7) and 40.61 (3), or a local exposition district created under subch. II of ch.
19229
and subch. X. Each employer shall be a separate legal jurisdiction for OASDHI
20purposes.
AB63, s. 17 21Section 17 . 40.02 (28) of the statutes, as affected by 1999 Wisconsin Act ....
22(this act), is amended to read:
AB63,7,523 40.02 (28) "Employer" means the state, including each state agency, any
24county, city, village, town, school district, other governmental unit or
25instrumentality of 2 or more units of government now existing or hereafter created

1within the state, any federated public library system established under s. 43.19
2whose territory lies within a single county with a population of 500,000 or more and
3a local exposition district created under subch. II of ch. 229, except as provided under
4ss. 40.51 (7) and 40.61 (3) and subch. X. Each employer shall be a separate legal
5jurisdiction for OASDHI purposes.
AB63, s. 18 6Section 18. Subchapter X of chapter 40 [precedes 40.98] of the statutes is
7created to read:
AB63,7,88 Chapter 40
AB63,7,119 Subchapter X
10 Private employer health
11 Care coverage
AB63,7,12 1240.98 Health care coverage. (1) In this subchapter:
AB63,7,1313 (ar) "Board" means the private employer health care coverage board.
AB63,7,1714 (b) "Dependent" means a spouse, an unmarried child under the age of 19 years,
15an unmarried child who is a full-time student under the age of 21 years and who is
16financially dependent upon the parent, or an unmarried child of any age who is
17medically certified as disabled and who is dependent upon the parent.
AB63,7,2518 (c) "Employe" means any person who receives earnings as payment for personal
19services rendered for the benefit of any employer including officers of the employer.
20An employe is considered to have separated from the service of an employer at the
21end of the day on which the employe last performed services for the employer, or, if
22later, the day on which the employe-employer relationship is terminated because of
23the expiration or termination of leave without pay, sick leave, vacation or other leave
24of absence. A person shall not be considered an employe if any of the following
25applies:
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