LRB-1795/2
RAC:hmh:jf
2001 - 2002 LEGISLATURE
April 4, 2001 - Introduced by Senators Risser and Schultz, cosponsored by
Representatives Musser, Boyle, Hahn, Miller, Young and Turner. Referred
to Committee on Universities, Housing, and Government Operations.
SB125,1,4
1An Act to repeal 40.61 (2) and 40.62 (1m);
to amend 40.61 (1), 40.61 (3), 40.62
2(1) and 40.62 (2);
to repeal and recreate 40.05 (5); and
to create 40.02 (25m)
3of the statutes;
relating to: income continuation insurance coverage for state
4employees.
Analysis by the Legislative Reference Bureau
Under current law, the group insurance board is required to establish an
income continuation insurance plan for state employees. One of the key features of
the plan is that employees only become eligible for income continuation insurance
benefits after exhausting their accumulated sick leave credits. Currently, the
premium amount that an employee must pay for income continuation insurance is
based on the amount of his or her accumulated sick leave credits, unless the
employee's collective bargaining agreement or the state compensation plan provides
otherwise.
This bill eliminates the requirement that an employee must exhaust his or her
accumulated sick leave credits before becoming eligible for income continuation
insurance benefits. In addition, the bill provides that an employee, for income
continuation insurance benefits, is only required to pay the gross premium
remaining after the employer has paid the premium required to cover a
180-calendar day elimination period with a benefit level, determined by contract or
rule, that does not exceed $4,000 per month or, if different, the amount determined
under a collective bargaining agreement or the state compensation plan. Under the
bill, an "elimination period" is defined as a selected number of consecutive calendar
days, determined by the group insurance board by contract or rule, during which an
insured employee satisfies all eligibility criteria for income continuation insurance
benefits.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB125, s. 1
1Section
1. 40.02 (25m) of the statutes is created to read:
SB125,2,52
40.02
(25m) "Elimination period" means a selected number of consecutive
3calendar days, determined by contract or rule under s. 40.61 (1), during which an
4insured employee satisfies all eligibility criteria for income continuation insurance
5benefits.
SB125, s. 2
6Section
2. 40.05 (5) of the statutes is repealed and recreated to read:
SB125,2,137
40.05
(5) Income continuation insurance premiums. For income continuation
8insurance provided under subch. V, an insured employee shall pay the amount of the
9gross premium remaining after the employer has paid the premium required to cover
10a 180-calendar day elimination period with a benefit level, determined under s.
1140.61 (1), that does not exceed $4,000 per month or, if different, the amount
12determined under a collective bargaining agreement under subch. I or V of ch. 111
13or s. 230.12 or 233.10.
SB125, s. 3
14Section
3. 40.61 (1) of the statutes is amended to read:
SB125,2,1815
40.61
(1) The procedures and provisions pertaining to enrollment,
premium
16transmitted elimination periods, payment of premiums, evidence of insurability, and
17coverage of eligible employees for income continuation benefits shall be established
18by contract or rule except as otherwise specifically provided by this chapter.
SB125, s. 4
19Section
4. 40.61 (2) of the statutes is repealed.
SB125, s. 5
20Section
5. 40.61 (3) of the statutes is amended to read:
SB125,3,7
140.61
(3) Any employer under s. 40.02 (28), other than the state, may offer to
2all of its employees an income continuation insurance plan through a program
3offered by the group insurance board. Notwithstanding
sub. (2) and ss. 40.05 (5) and
440.62, the department may by
contract or rule establish different eligibility
5standards or contribution requirements for such employees and employers and may
6by
contract or rule limit the categories of employers which may be included as
7participating employers under this subchapter.
SB125, s. 6
8Section
6. 40.62 (1) of the statutes is amended to read:
SB125,3,169
40.62
(1) The group insurance board shall establish an income continuation
10insurance plan providing for full or partial payment of the financial loss of earnings
11incurred as a result of injury or illness with separate provisions for short-term
12insurance with a benefit duration of no more than one year and long-term insurance
13covering injury or illness of indefinite duration. Employees insured under the plan
14shall be eligible for benefits upon
exhaustion of accumulated sick leave and 15completion of the
selected elimination period established by the group insurance
16board.
SB125, s. 7
17Section
7. 40.62 (1m) of the statutes is repealed.
SB125, s. 8
18Section
8. 40.62 (2) of the statutes is amended to read:
SB125,3,2519
40.62
(2) Sick leave accumulation
If the group insurance board permits an
20eligible employee to defer enrollment under the income continuation insurance plan
21and if the board provides that sick leave accumulations may be used for any purpose
22relating to deferred enrollment, the accrual and crediting of sick leave shall be
23determined in accordance with
contracts or rules of the department, any collective
24bargaining agreement under subch. I or V of ch. 111, and ss. 13.121 (4), 36.30, 230.35
25(2), 233.10, 757.02 (5)
, and 978.12 (3).
SB125,4,22
(1)
This act takes effect on January 1, 2003.