April 29, 2003 - Introduced by Representatives McCormick, Albers, Gielow,
Grothman, Gunderson, Hahn, Hines, Jensen, Kestell, Krawczyk, Ladwig, F.
Lasee, Lothian, Musser, Pettis, Seratti, Stone, Van Roy, Vrakas, Vukmir,
Weber, Wieckert and
J. Wood, cosponsored by Senators Darling, Harsdorf,
Kanavas, Stepp and
Welch. Referred to Committee on Insurance.
AB304,2,7
1An Act to renumber and amend 62.61 and 66.0137 (5);
to amend 40.02 (25)
2(bm), 66.0137 (1), 111.70 (1) (a), 111.70 (4) (cm) 7r. d., 111.70 (4) (cm) 7r. e., 111.70
3(4) (cm) 7r. f., 111.70 (4) (cm) 7r. g., 111.70 (4) (cm) 7r. h. and 632.797 (5); and
4to create 22.07 (10), 22.07 (11), 62.61 (2), 62.61 (3), 66.0137 (5) (b) and (c),
5111.70 (4) (c) 2m., 111.70 (4) (jm) 4m., 111.70 (4) (n), 111.70 (4) (o), 111.77 (6)
6(dm), 601.41 (10), 601.41 (11), 601.41 (12), 610.66 and 632.797 (1) (d) of the
7statutes;
relating to: collective bargaining over health care coverage for
8municipal employees; allowing municipal employers to change health care
9coverage plan providers; factors considered in rendering a collective bargaining
10arbitration decision; requiring the Group Insurance Board to prepare a report
11on offering group health insurance plans at different cost levels to local
12government employers and employees; requiring the Group Insurance Board
13to offer for purchase long-term care insurance policies to employees of local
14governments; convening a task force to conduct a feasibility study on forming
1a state pool for the bulk purchasing of prescription drugs; disclosure of health
2insurance claims experience of local governmental units; bids submitted to
3local governmental units for health insurance; requiring the Commissioner of
4Insurance to promulgate rules establishing uniform forms for local government
5health care coverage requests for proposals and health claims experience and
6summarizing benefits provided under health care benefit plans; and granting
7rule-making authority.
Analysis by the Legislative Reference Bureau
This bill makes several changes to health insurance plans and other benefits
offered to local government employees.
Collective bargaining
Under the Municipal Employment Relations Act (MERA), all matters relating
to wages, hours, and conditions of employment are subject to collective bargaining.
This bill provides that local governmental employers, with the exception of school
district employers with respect to their professional employees, are prohibited from
bargaining over the selection of a health care coverage plan if the employer offers to
enroll its employees in a plan provided to local government employers by the Group
Insurance Board or in a plan that is substantially similar to the plan offered by the
Group Insurance Board. Under the bill, the Office of the Commissioner of Insurance
(OCI) must promulgate rules that set out standardized benefits under health care
coverage plans and that may be used for determining whether any health care
coverage plan is similar to the plan offered by the group insurance board.
In addition, the bill provides that under MERA any employer may unilaterally
change its employees' health care coverage plan provider if the benefits remain
substantially the same and the actual providers of the health care are the same. The
bill requires, however, that any employer savings that result from changing the
health care coverage plan provider must be used to increase salaries paid to the
employees affected by the change.
Under MERA, for labor disputes that go to arbitration, the arbitrator or
arbitration panel must consider a variety of factors, some of which are given
"greatest weight"; some of which are given "greater weight"; and some of which must
simply be considered. Among the factors that must simply be considered are the
wages, hours, and conditions of employment of employees providing similar services
and of employees in public and in private employment in the same and comparable
communities. This bill provides that the arbitrator or arbitration panel must look
at the wages, hours, and conditions of employment of the employees as a whole and
not in isolation. In addition, another factor that must be considered is the average
consumer prices for goods and services, commonly known as the cost of living. The
bill provides that included in this cost of living factor are the average housing costs
and other costs significantly affecting the quality of life.
Health insurance plan study
This bill requires the Group Insurance Board to study the feasibility of
developing a group health insurance plan with at least three cost levels and a
low-cost health insurance plan that provides coverage for catastrophic illness or
injury.
Long-term care insurance
Under current law, the Group Insurance Board offers to state employees a
long-term care insurance plan in which a state employee may purchase for himself
or herself or for his or her spouse or parent or spouse's parent long-term care
insurance. This bill requires the Group Insurance Board to offer this insurance to
other government employers and their employees.
Interagency task force on bulk purchasing of prescription drugs
The bill directs the Secretary of Administration to organize an interagency task
force on bulk purchasing of prescription drugs. The task force must examine the
following: which state agencies would benefit from the bulk purchasing of
prescription drugs; which methods of purchasing prescription drugs would result in
the greatest cost savings; whether the state should directly administer the bulk
purchasing of prescription drugs or whether the state should contract with a private
entity; whether combining prescription drug purchasing efforts with other states is
feasible and cost effective; how local governmental units could participate in the bulk
purchasing of prescription drugs; whether it is feasible to include private sector
entities in the bulk purchasing of prescription drugs; and the estimated cost savings
that could be realized from the bulk purchasing of prescription drugs.
Solicitation of health insurance bids
Current law authorizes local governmental employers (which includes cities,
villages, towns, counties, school districts, sewerage districts, drainage districts, and
any other political subdivisions of the state) to offer health care coverage to their
employees and employees' spouses and dependents. This bill requires OCI to
promulgate rules developing a uniform form that a local government must use to
solicit bids for its employees' health care coverage; requires insurers to use the form
to submit bids to local governments; requires local governments that receive the bids
to submit information about the bids to the Department of Electronic Government
(DEG); and requires DEG to make the information available to the public.
Health claims experience
Under current law, an insurer must provide aggregate claims experience
information, upon request, to the policyholder of a group health insurance policy and
to an employer that provides health care coverage to its employees through a
multiple-employer trust. This requirement applies only if the policyholder or
employer provides coverage under the policy for at least 50 individuals, excluding
individuals who are covered as dependents. Information must be provided for the
current policy period and for up to two immediately preceding policy periods if the
insurer provided coverage during those periods, but information is not required to
be provided for any period of time that is before 18 months before the date of the
request. The insurer must provide the information within 30 days after receiving the
request and may not charge for providing the information one time in a 12-month
period but may charge for additional requests during that time period.
This bill does the following:
1. Requires a local governmental unit, which includes a city, village, town,
county, school district, sewerage district, drainage district, and any other political
subdivision of the state, that requests aggregate group health claims experience that
an insurer is required to provide to notify DEG when the local governmental unit
requests the information.
2. Requires an insurer to provide to DEG the aggregate group health claims
experience information that it provides to a local governmental unit at the same time
that the insurer provides the information to the local governmental unit.
3. Requires OCI to develop, by rule, a uniform form for insurers to use when
providing aggregate group health claims experience information to local
governmental units and requires insurers to use the form when providing the
information to local governmental units and to DEG.
4. Requires DEG to make the aggregate group health claims experience
information that it receives from insurers available to the public.
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:
AB304, s. 1
1Section
1. 22.07 (10) of the statutes is created to read:
AB304,4,82
22.07
(10) Make available to the public without charge to local governmental
3units, the information received from local governmental units under s. 66.0137 (5)
4(c) in a manner determined by the department to enable the general public to make
5meaningful comparisons of the bids received. The department shall specify the
6format that local governmental units shall use in submitting the information and
7shall make information about the format readily available to local governmental
8units.
AB304, s. 2
9Section
2. 22.07 (11) of the statutes is created to read:
AB304,5,3
122.07
(11) Make available to the public the aggregate group health claims
2experience information received from insurers under s. 632.797 (1) (d) in the manner
3determined by the department.
AB304, s. 3
4Section
3. 40.02 (25) (bm) of the statutes is amended to read:
AB304,5,125
40.02
(25) (bm) For the purpose of long-term care insurance, in addition to any
6state annuitant under s. 40.02 (54m), any employee
of the state who received a salary
7or wages
from an employer in the previous calendar year, and any participant who
8was at one time employed by the state who receives a lump sum payment under s.
940.25 (1) which would have been an immediate annuity if paid as an annuity, if the
10employee is a resident of this state and meets all of the requirements for an
11immediate annuity including filing of an application, whether or not final
12administrative action has been taken.
AB304, s. 4
13Section
4. 62.61 of the statutes is renumbered 62.61 (1) and amended to read:
AB304,6,414
62.61
(1) Health insurance; 1st class cities. The common council of a 1st
15class city may, by ordinance or resolution, provide for, including the payment of
16premiums of, general hospital, surgical and group insurance for both active and
17retired city officers and city employees and their respective dependents in private
18companies, or may, by ordinance or resolution, elect to offer to all of its employees a
19health care coverage plan through a program offered by the group insurance board
20under ch. 40. Municipalities which elect to participate under s. 40.51 (7) are subject
21to the applicable sections of ch. 40 instead of this
section subsection. Contracts for
22insurance under this
section subsection may be entered into for active officers and
23employees separately from contracts for retired officers and employees.
24Appropriations may be made for the purpose of financing insurance under this
25section subsection. Moneys accruing to a fund to finance insurance under this
1section subsection, by investment or otherwise, may not be diverted for any other
2purpose than those for which the fund was set up or to defray management expenses
3of the fund or to partially pay premiums to reduce costs to the city or to persons
4covered by the insurance, or both.
AB304, s. 5
5Section
5. 62.61 (2) of the statutes is created to read:
AB304,6,96
62.61
(2) If a 1st class city solicits bids to provide health care coverage under
7sub. (1), the 1st class city shall use the uniform local governmental health care
8coverage request-for-proposals form developed by the commissioner of insurance
9under s. 601.41 (10) to solicit the bids.
AB304, s. 6
10Section
6. 62.61 (3) of the statutes is created to read:
AB304,6,1611
62.61
(3) A 1st class city shall submit information about a bid it receives to the
12department of electronic government in the format specified under s. 22.07 (10) no
13later than 30 days after the bid is received or, in the case of a sealed bid, no later than
1430 days after the bid is opened. At the time the information is submitted to the
15department of electronic government, the 1st class city shall do at least one of the
16following:
AB304,6,1717
(a) Post the same information on the city's Internet site, if any.
AB304,6,1918
(b) Post notice on the city's Internet site, if any, that the information has been
19submitted to the department of electronic government.
AB304,6,2320
(c) Post or publish as a class 1 notice under ch. 985 a statement that the
21information has been submitted to the department of electronic government and will
22be available on the state's Internet site, if any, or a statement that the information
23may be viewed at a specified location in the 1st class city, or both.
AB304, s. 7
24Section
7. 66.0137 (1) of the statutes is amended to read:
AB304,7,4
166.0137
(1) Definition. In this section, "local governmental unit" means a city,
2village, town, county, school district
(as enumerated in s. 67.01 (5)), sewerage
3district, drainage district, and
, without limitation because of enumeration, any other
4political subdivision of the state.
AB304, s. 8
5Section
8. 66.0137 (5) of the statutes is renumbered 66.0137 (5) (a) amended
6to read:
AB304,7,167
66.0137
(5) (a) The state or a local governmental unit may provide for the
8payment of premiums for hospital, surgical and other health and accident insurance
9and life insurance for employees and officers and their spouses and dependent
10children. A local governmental unit may also provide for the payment of premiums
11for hospital and surgical care for its retired employees. In addition, a local
12governmental unit may, by ordinance or resolution, elect to offer to all of its
13employees a health care coverage plan through a program offered by the group
14insurance board under ch. 40. A local governmental unit that elects to participate
15under s. 40.51 (7) is subject to the applicable sections of ch. 40 instead of this
16subsection paragraph.
AB304, s. 9
17Section
9. 66.0137 (5) (b) and (c) of the statutes are created to read:
AB304,7,2118
66.0137
(5) (b) If a local governmental unit solicits bids to provide health care
19coverage under par. (a), the local governmental unit shall use the uniform local
20governmental health care coverage request-for-proposals form developed by the
21commissioner of insurance under s. 601.41 (10) to solicit the bids.
AB304,8,222
(c) A local governmental unit shall submit information about a bid it receives
23to the department of electronic government in the format specified under s. 22.07 (10)
24no later than 30 days after the bid is received or, in the case of a sealed bid, no later
25than 30 days after the bid is opened. At the time the information is submitted to the
1department of electronic government, the local governmental unit shall do at least
2one of the following:
AB304,8,33
1. Post the same information on the local government's Internet site, if any.
AB304,8,64
2. Post notice on the local government's Internet site, if any, that the
5information has been submitted to the department of electronic government and will
6be available on the state's Internet site, if any.
AB304,8,107
3. Post or publish as a class 1 notice under ch. 985 a statement that the
8information has been submitted to the department of electronic government and will
9be available on the state's Internet site, if any, or a statement that the information
10may be viewed at a specified location in the local governmental unit, or both.
AB304, s. 10
11Section
10. 111.70 (1) (a) of the statutes is amended to read:
AB304,9,912
111.70
(1) (a) "Collective bargaining" means the performance of the mutual
13obligation of a municipal employer, through its officers and agents, and the
14representative of its municipal employees in a collective bargaining unit, to meet and
15confer at reasonable times, in good faith, with the intention of reaching an
16agreement, or to resolve questions arising under such an agreement, with respect to
17wages, hours and conditions of employment, and with respect to a requirement of the
18municipal employer for a municipal employee to perform law enforcement and fire
19fighting services under s. 61.66, except as provided in sub. (4) (m)
, (n), and (o) and
20s. 40.81 (3) and except that a municipal employer shall not meet and confer with
21respect to any proposal to diminish or abridge the rights guaranteed to municipal
22employees under ch. 164. The duty to bargain, however, does not compel either party
23to agree to a proposal or require the making of a concession. Collective bargaining
24includes the reduction of any agreement reached to a written and signed document.
25The municipal employer shall not be required to bargain on subjects reserved to
1management and direction of the governmental unit except insofar as the manner
2of exercise of such functions affects the wages, hours and conditions of employment
3of the municipal employees in a collective bargaining unit. In creating this
4subchapter the legislature recognizes that the municipal employer must exercise its
5powers and responsibilities to act for the government and good order of the
6jurisdiction which it serves, its commercial benefit and the health, safety and welfare
7of the public to assure orderly operations and functions within its jurisdiction,
8subject to those rights secured to municipal employees by the constitutions of this
9state and of the United States and by this subchapter.
AB304, s. 11
10Section
11. 111.70 (4) (c) 2m. of the statutes is created to read:
AB304,9,1811
111.70
(4) (c) 2m. `Factors used in arbitration to settle disputes.' If the parties
12to a dispute agree to have the commission or any other appropriate agency serve as
13arbitrator to resolve the dispute and if the commission or any other appropriate
14agency compares the wages, hours, and conditions of employment of the municipal
15employees involved in the arbitration proceedings with the wages, hours, and
16conditions of employment of any other employees, the commission or other
17appropriate agency shall compare the wages, hours, and conditions of employment
18as a whole, rather than as individual elements.
AB304, s. 12
19Section
12. 111.70 (4) (cm) 7r. d. of the statutes is amended to read:
AB304,9,2420
111.70
(4) (cm) 7r. d. Comparison of wages, hours and conditions of employment
21of the municipal employees involved in the arbitration proceedings with the wages,
22hours and conditions of employment of other employees performing similar services.
23In making this comparison, the arbitrator or arbitration panel shall consider wages,
24hours, and conditions of employment as a whole, rather than as individual elements.
AB304, s. 13
25Section
13. 111.70 (4) (cm) 7r. e. of the statutes is amended to read:
AB304,10,6
1111.70
(4) (cm) 7r. e. Comparison of the wages, hours and conditions of
2employment of the municipal employees involved in the arbitration proceedings with
3the wages, hours and conditions of employment of other employees generally in
4public employment in the same community and in comparable communities.
In
5making this comparison, the arbitrator or arbitration panel shall consider wages,
6hours, and conditions of employment as a whole, rather than as individual elements.
AB304, s. 14
7Section
14. 111.70 (4) (cm) 7r. f. of the statutes is amended to read:
AB304,10,138
111.70
(4) (cm) 7r. f. Comparison of the wages, hours and conditions of
9employment of the municipal employees involved in the arbitration proceedings with
10the wages, hours and conditions of employment of other employees in private
11employment in the same community and in comparable communities.
In making
12this comparison, the arbitrator or arbitration panel shall consider wages, hours, and
13conditions of employment as a whole, rather than as individual elements.
AB304, s. 15
14Section
15. 111.70 (4) (cm) 7r. g. of the statutes is amended to read:
AB304,10,1715
111.70
(4) (cm) 7r. g. The average consumer prices for goods and services,
16commonly known as the cost of living
, including specifically average housing costs
17and other costs significantly affecting the quality of life.
AB304, s. 16
18Section
16. 111.70 (4) (cm) 7r. h. of the statutes is amended to read:
AB304,10,2419
111.70
(4) (cm) 7r. h. The overall compensation presently received by the
20municipal employees, including direct wage compensation, vacation, holidays and
21excused time, insurance and pensions, medical and hospitalization benefits, the
22continuity and stability of employment, and all other benefits received.
In making
23this comparison, the arbitrator or arbitration panel shall consider wages, hours, and
24conditions of employment as a whole, rather than as individual elements.
AB304, s. 17
25Section
17. 111.70 (4) (jm) 4m. of the statutes is created to read:
AB304,11,6
1111.70
(4) (jm) 4m. For the purpose of setting wages and determining hours and
2conditions of employment under subd. 4., if the arbitrator compares the wages,
3hours, and conditions of employment with the wages, hours, and conditions of
4employment of other employees performing similar services or in the same
5community or comparable communities, the arbitrator shall consider wages, hours,
6and conditions of employment as a whole, rather than as individual elements.
AB304, s. 18
7Section
18. 111.70 (4) (n) of the statutes is created to read:
AB304,11,198
111.70
(4) (n)
Municipal employer-initiated change in health care coverage
9plan provider. 1. Notwithstanding the terms of a collective bargaining agreement,
10a municipal employer may unilaterally change its employees' health care coverage
11plan provider without the consent of any affected employee in the collective
12bargaining unit if the benefits provided by the new health care coverage plan
13provider are substantially similar to those provided by the former health care
14coverage plan provider and if the persons who provide health care coverage under
15the new plan are the same as under the former plan. Any such unilateral change in
16health care coverage plan provider is not a violation of a collective bargaining
17agreement or a prohibited practice under sub. (3) (a) and, for purposes of a qualified
18economic offer, satisfies the requirement to maintain fringe benefits under sub. (1)
19(nc).
AB304,11,2520
2. Any moneys saved by a municipal employer as a result of a change in health
21care coverage plan provider under subd. 1. shall be used to increase the wages paid
22to the affected employees during the period covered by their collective bargaining
23agreement and wage-related costs resulting from the increase in wages. Any such
24increase in wages and wage-related costs by the municipal employer is not a
25prohibited practice under sub. (3) (a).
AB304, s. 19
1Section
19. 111.70 (4) (o) of the statutes is created to read:
AB304,12,92
111.70
(4) (o)
Prohibited subject of collective bargaining. 1. A municipal
3employer is prohibited from bargaining collectively with respect to the employer's
4selection of a health care coverage plan if the municipal employer offers to enroll the
5employees in a health care coverage plan under s. 40.51 (7) or in a health care
6coverage plan that is substantially similar to a plan offered under s. 40.51 (7). The
7commission shall use the criteria in rules promulgated by the commissioner of
8insurance under s. 601.41 (12) to determine if health care coverage plans are
9substantially similar.
AB304,12,1110
2. This paragraph does not apply to a municipal employer with respect to its
11school district professional employees.
AB304, s. 20
12Section
20. 111.77 (6) (dm) of the statutes is created to read:
AB304,12,1513
111.77
(6) (dm) In making the comparison of wages, hours, and conditions of
14employment under par (d), the arbitrator shall consider wages, hours, and conditions
15of employment as a whole, rather than as individual elements.
AB304, s. 21
16Section
21. 601.41 (10) of the statutes is created to read:
AB304,12,2217
601.41
(10) Local government health care coverage request-for-proposals
18form. The commissioner shall by rule develop a uniform local government health
19care coverage request-for-proposals form that a local governmental unit must use
20under s. 66.0137 (5) (b) if the local governmental unit solicits bids for health care
21coverage. The commissioner shall publish a notice in the Wisconsin Administrative
22Register that states the effective date of the rule required under this subsection.
AB304, s. 22
23Section
22. 601.41 (11) of the statutes is created to read:
AB304,13,524
601.41
(11) Local government health care claims experience form. The
25commissioner shall by rule develop a uniform local government health claims
1experience form that an insurer must use under s. 632.797 (1) (d). The form may not
2require the disclosure of information that identifies an individual or that is
3confidential under s. 51.30, 146.82, or 252.15 or any applicable federal law. The
4commissioner shall publish a notice in the Wisconsin Administrative Register that
5states the effective date of the rule required under this subsection.
AB304, s. 23
6Section
23. 601.41 (12) of the statutes is created to read:
AB304,13,117
601.41
(12) Substantially similar health care coverage plan. The
8commissioner shall promulgate rules, that set out a standardized summary of
9benefits provided under health care coverage plans, including plans offered under
10s. 40.51 (7), for use in determining whether a health care coverage plan is
11substantially similar to a plan offered under s. 40.51 (7).
AB304, s. 24
12Section
24. 610.66 of the statutes is created to read:
AB304,13,16
13610.66 Local government health care coverage request-for-proposals
14form. Every insurer shall use the uniform local government health care coverage
15request-for-proposals form developed by the commissioner under s. 601.41 (10)
16when submitting a bid to a local governmental unit under s. 66.0137 (5) (b).
AB304, s. 25
17Section
25. 632.797 (1) (d) of the statutes is created to read: