2019 - 2020 LEGISLATURE
February 24, 2020 - Introduced by Representatives Neylon, Dittrich, Magnafici,
Skowronski and Wichgers, cosponsored by Senators Craig, Nass, Stroebel,
Wanggaard and Bernier. Referred to Committee on Insurance.
AB953,1,2 1An Act to amend 632.7495 (4) (intro.) and 632.7495 (5) of the statutes; relating
short-term health coverage.
Analysis by the Legislative Reference Bureau
This bill defines short-term, limited-duration insurance using the federal
government's definition. Under the bill, if the federal government defines
short-term, limited-duration insurance to have shorter initial and aggregate
durations than current law and if the federal law no longer preempts the state law,
the commissioner shall define short-term, limited-duration insurance as insurance
that complies with current state law. Under current state law, an insurer is not
required to renew short-term coverage, which is coverage that is marketed and
designed to provide short-term coverage as a bridge between health coverage with
an initial term of not more than 12 months and an aggregate term of all consecutive
periods of coverage that does not exceed 18 months. The current federal regulation
defines short-term, limited-duration to have an initial expiration date that is less
than 12 months after the effective date and an aggregate duration, including
renewals or extensions, of no longer than 36 months.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB953,1 3Section 1. 632.7495 (4) (intro.) of the statutes is amended to read:
1632.7495 (4) (intro.) Except as the commissioner may provide by rule under
2sub. (5) and notwithstanding subs. (1) and (2) and s. 631.36 (4), an insurer is not
3required to renew individual health benefit plan coverage that is short-term,
4limited-duration insurance, as defined in 45 CFR 144.103. If the federal
5government defines short-term, limited-duration insurance to have a shorter initial
6term than 12 months and aggregate duration of less than 18 months and if the
7federal law no longer preempts state law, the commissioner shall define short-term,
8limited-duration insurance to be insurance that
complies with all of the following:
AB953,2 9Section 2. 632.7495 (5) of the statutes is amended to read:
AB953,2,1410 632.7495 (5) The commissioner shall promulgate rules governing disclosures
11related to, and may promulgate rules setting standards for, the sale of individual
12health benefit plans that an insurer is not required to renew under sub. (4), except
13that the commissioner may not set a different initial or aggregate duration for
14short-term, limited-duration insurance than is specified in sub. (4)
AB953,2,1515 (End)