The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB340,1 1Section 1. 609.83 of the statutes is amended to read:
SB340,2,4 2609.83 Coverage of drugs and devices. Limited service health
3organizations, preferred provider plans, and defined network plans are subject to ss.
4632.853 and 632.895 (6) (b) and (16t).
SB340,2 5Section 2. 632.895 (6) (title) of the statutes is amended to read:
SB340,2,66 632.895 (6) (title) Equipment and supplies for treatment of diabetes; insulin.
SB340,3 7Section 3. 632.895 (6) of the statutes is renumbered 632.895 (6) (a) and
8amended to read:
SB340,2,199 632.895 (6) (a) Every disability insurance policy which provides coverage of
10expenses incurred for treatment of diabetes shall provide coverage for expenses
11incurred by the installation and use of an insulin infusion pump, coverage for all
12other equipment and supplies, including insulin or any other prescription
13medication, used in the treatment of diabetes, and coverage of diabetic
14self-management education programs. Coverage Except as provided in par. (b),
required under this subsection shall be subject to the same exclusions,
16limitations, deductibles, and coinsurance provisions of the policy as other covered
17expenses, except that insulin infusion pump coverage may be limited to the purchase
18of one pump per year and the insurer may require the insured to use a pump for 30
19days before purchase.
1Section 4. 632.895 (6) (b) of the statutes is created to read:
SB340,3,22 632.895 (6) (b) 1. In this paragraph:
SB340,3,43 a. “Cost sharing” means the total of any deductible, copayment, or coinsurance
4amounts imposed on a person covered under a policy or plan.
SB340,3,115 b. “Rebate” means a price concession that accrues directly or indirectly in the
6event of an increase in the wholesale acquisition cost of a prescription drug above a
7specified threshold; a negotiated price concession that may accrue directly or
8indirectly from a drug manufacturer, pharmacy, or another party in the prescription
9drug sale transaction; or a price concession given to an insurer or plan sponsor of a
10self-insured plan to reduce the liability of the insurer or sponsor for the prescription
SB340,3,1212 c. “Self-insured health plan” has the meaning given in s. 632.85 (1) (c).
SB340,3,1513 2. Every disability insurance policy and self-insured health plan that covers
14insulin and that imposes cost sharing on prescription drugs may not impose cost
15sharing on insulin in an amount that exceeds the lesser of the following:
SB340,3,1616 a. One hundred dollars for a one-month supply of insulin.
SB340,3,2117 b. The greater of the amount that is 125 percent of the cost to the policy or plan
18of insulin or the amount generated by subtracting 51 percent of the total rebates
19received by the policy or plan from the cost-sharing amount that would be charged
20to a covered person for insulin if it is treated as any other prescription drug under
21the policy or plan.
SB340,4,222 3. Nothing in this paragraph prohibits a disability insurance policy or
23self-insured health plan from imposing cost sharing on insulin in an amount less
24than the amount specified under subd. 2. Nothing in this paragraph requires a

1disability insurance policy or self-insured health plan to impose any cost sharing on
SB340,4,53 4. Nothing in this paragraph requires a disability insurance policy or a
4self-insured health plan to reveal the amount of rebates received or any information
5that is protected as a trade secret.
SB340,5 6Section 5. Nonstatutory provisions.
SB340,4,187 (1) Investigation on insulin pricing. The commissioner of insurance shall
8investigate the pricing of prescription insulin that is made available to residents of
9this state to ensure adequate consumer protection and determine whether
10additional consumer protection is needed. The commissioner of insurance as part of
11the investigation shall compile and analyze information concerning the
12organization, business practices, pricing information, data, reports, and other
13information from companies engaged in the manufacture or sale of prescription
14insulin, including any publicly available information related to prescription drug
15pricing, that the commissioner finds necessary to conduct the investigation under
16this subsection. The commissioner of insurance may not compel any person or
17business to provide proprietary information or trade secrets for purposes of this
SB340,4,2219 (2) Report on insulin pricing. By January 1, 2021, the commissioner of
20insurance shall prepare and submit to the governor and, under s. 13.172, to the
21legislature a report that contains all of the following based on the investigation
22conducted under sub. (1):
SB340,4,2423 (a) A summary of insulin pricing practices and variables that contribute to the
24pricing of disability insurance policies.
1(b) Policy recommendations to control and prevent overpricing of prescription
2insulin made available to residents of this state.
SB340,5,43 (c) Any recommendations for changes to the laws of this state to prevent
4deceptive practices related to the sale or pricing of prescription insulin.
SB340,5,65 (d) Any other information that the commissioner of insurance determines is
6helpful to understanding the pricing or sale of insulin or other prescription drugs.
SB340,6 7Section 6 . Initial applicability.
SB340,5,108 (1) For policies and plans containing provisions inconsistent with this act, the
9act first applies to policy or plan years beginning on January 1 of the year following
10the year in which this subsection takes effect, except as provided in sub. (2).
SB340,5,1511 (2) For policies and plans that are affected by a collective bargaining agreement
12containing provisions inconsistent with this act, this act first applies to policy or plan
13years beginning on the effective date of this subsection or on the day on which the
14collective bargaining agreement is newly established, extended, modified, or
15renewed, whichever is later.
SB340,7 16Section 7 . Effective date.
SB340,5,1817 (1) This act takes effect on the first day of the 4th month beginning after
SB340,5,1919 (End)