Rule-Making Notices (Hearing Notices)

Local government employees have access to the same HMOs and essentially the same health plans as offered to state employees in their area. The proposed rule will allow the group insurance board to establish tiers for the health plans as offered to local government employers. The tier into which a plan is placed may be the same as for state employees or may be different if the board and its actuary determine that the plan as offered to local employees, and its premium, warrants a different placement. Under the proposed rule, local government employers could use the tiers established by the board as a basis for their premium contribution arrangement. Under the new law enacted by 2003 Wis. Act 33, the state of Wisconsin's minimum premium contribution for its insured full-time employees is 80% of the average premium cost of plans offered in the tier with the lowest employee premium cost. Under the proposed rule, the local government employer's required minimum contribution will remain unchanged at the present 50% of the lowest cost plan (25% for part-time employees). If the local government employer adopts a tiered plan based on the Group Insurance Board's tiers, and provides that the employee's portion of the monthly premium will increase for plans in higher tiers by at least $20 for single coverage and $50 for family coverage for each successively higher tier, then the employer will not be limited to contributions of 105% of the premium for the lowest cost plan.

The proposed rule does not alter local government premium contributions. However, the rule change would allow local government employers more options in setting their future share of premiums.

Many local government employers base premium contributions on collectively bargained agreements. The proposed rule cannot impair existing contracts and so could have no effect on premium contributions being made under existing collective bargaining agreements until the existing agreements expire or are amended or otherwise renegotiated.

The proposed rule also amends the current language of s. ETF 40.10 in conformity with 1999 Act 185, section 193, which provided that wherever “employe," “employes," “employe's" or “employes' " appear in the statutes, “employee," “employees," “employee's" or “employees' " are substituted.

Summary of, and comparison with, existing or proposed federal regulation

There are no existing or proposed federal regulations applicable to the subject matter of this rule.

Comparison with rules in adjacent states

A search of legal databases on state administrative regulations has located no similar rules in adjacent states.

Summary of factual data and analytical methodologies and how the related findings support the approach chosen

The legislature required a change with respect to state contributions towards health insurance for state employees. One reason for the change was because the previous contribution strategy, the so-called "105% formula," was perceived as no longer being as effective as possible in holding down increases in health insurance premiums by health plans. The tiered approach is believed to better encourage health plans to become more cost efficient, thereby holding down the cost of health insurance. The board and DETF have decided that local units of government should be provided with access to the same tool to encourage cost efficiency in order to contain health care costs.

Under the proposed rule, participating Wisconsin public employers may continue to base their employer contribution solely on the so-called "105% formula," or alternatively, on the health plan tiers.

Analysis and supporting documents used to determine effect on small business or in preparation of economic impact report

Section 40.02 (28), Stats. “Employer" as defined for purposes of ch. 40 does not include small businesses.

Anticipated costs incurred by private sector

None.

Effect on small business

No effect.

Agency contact

For questions about the proposed rule, please write or call Arlene Larson, Manager, Self-Insured Health Plans, Division of Insurance Services, Department of Employee Trust Funds, P.O. Box 7931, Madison WI 53707. Telephone: [phone]. Fax: [phone]. E-mail: [e-mail]

Place where comments are to be submitted and deadline for submission

Written comments on the proposed rule may be submitted to Arlene Larson, Department of Employee Trust Funds, 801 W. Badger Road, P.O. Box 7931, Madison, WI 53707-7931. Written comments must be received at the Department of Employee Trust Funds no later than 4:30 PM on Wednesday, August 18, 2004.

Initial regulatory flexibility analysis

The proposed rule has no effect on small businesses because only governmental employers may participate in the group health insurance programs under ch. 40 of the statutes.

Fiscal estimate

The proposed rule has no direct fiscal impact. The proposed rule generates no revenues for any employer because it has no effect on the fiscal liabilities of any county, city, village, town, school district, technical college district or sewerage. The proposed rule only applies to the local government units electing to participate in the Group Insurance Board's group health program. The intended effect of the rule is to allow these employers an option that may reduce increases in future health care costs. Nothing in the rule, however, requires any employer to change its present contribution arrangement.

Free copies of proposed rule:

Copies of this rule are available without cost by making a request to the Department of Employee Trust Funds, Office of the Secretary, P.O. Box 7931, Madison, Wisconsin 53707-7931, telephone [phone].

Notice of Hearing

Insurance

[CR 04-079]

Notice is hereby given that pursuant to the authority granted under s. 601.41 (3), Stats., and the procedures set forth in under s. 227.18, Stats., OCI will hold a public hearing to consider the adoption of the attached proposed rulemaking order affecting section Ins 18.105, Wis. Adm. Code, relating to annual adjustment to the minimum necessary cost or payment to access independent review.

Hearing Information

Date: August 11, 2004

Time: 1:00 p.m., or as soon thereafter as the matter may be reached

Place: OCI, 2nd Floor Hearing Room, 125 South Webster Street, Madison, WI

Written comments or email comments submitted through the Wisconsin Administrative Rule website at https://apps3.dhfs.state.wi.us/admrules/public/Home on the proposed rule will be accepted into the record and receive the same consideration as testimony presented at the hearing if they are received at OCI within 10 days following the date of the hearing.

Written comments should be sent to:

Julie E. Walsh

Legal Unit - OCI Rule Comment for Rule 18.105

Office of the Commissioner of Insurance

PO Box 7873

Madison WI 53707-7873

Analysis Prepared by the Office of the Commissioner of Insurance (OCI)

1. Statutes interpreted: ss. 600.01, 628.34 (12), 632.835 (1) (a) - (b), and 632.835 (5) (c), Wis. Stats.

2. Statutory authority: ss. 600.01 (2), 601.41 (3), 601.42, 628.34 (12), 632.835 (5) (c), Wis. Stats.

3. Explanation of the OCI's authority to promulgate the proposed rule: The statutes are clear in granting the Office authority to promulgate rules and in this case specifically state at s. 632.835 (5) (c), Wis. Stats., that the commissioner shall promulgate a rule implementing the statutory provision.

4. Related Statutes or rules: Section 632.835, (5) (c), Wis. Stats., requires that the minimum necessary cost or payment of a procedure or service must be at least $250.00 as adjusted annually to reflect changes in the consumer price index for all urban consumers, U.S. city average as determined by the U.S. department of labor. The intent of the rule is to implement the statute by indicating the time and manner the CPI index will be posted and the modification to the minimum cost or payment requirement for accessing independent review.

5. The plain language analysis and summary of the proposed rule: The rule implements s. 632.835 (5) (c), Stats., requirement that the commissioner promulgate a rule adjusting the minimum requirements as found in s. 632.835 (1) (a) 4. and (1) (b) 4., Wis. Stats., at least annually. The rule proposes that the Commissioner post to the OCI website the CPI to be used for the year beginning on January 1 of each year. The Commissioner shall post the information on or before December 1 of each year.

6. Summary of and preliminary comparison with any existing or proposed federal regulation that is intended to address the activities to be regulated by the proposed rule:

There is no federal legislation that pertains to this rule.

7. Comparison of similar rules in adjacent states as found by OCI:

Iowa: No similar rules.

Illinois: No similar rules.

Minnesota: No similar rules.

Michigan: No similar rules.

8. A summary of the factual data and analytical methodologies that OCI used in support of the proposed rule and how any related findings support the regulatory approach chosen for the proposed rule:

The Office did not conduct a factual data using analytical methodologies as the rule proposes only to implement the notification of the CPI that will be used by consumers and insurers for the minimum cost or payment requirement to access independent review. There will be method selected to notify insurers and consumers is cost effective as it utilizes an existing communication tool.

9. Any analysis and supporting documentation that OCI used in support of OCI's determination of the rule's effect on small businesses under s. 227.114:

Health insurers doing an insurance business in Wisconsin do not qualify as small businesses and the effect of this rule alters the trigger dollar amount before an insured individual may access the independent review organization as it relates to health care for that insured. No small businesses will be effected by this rule.

10. If these changes will have a significant fiscal effect on the private sector, the anticipated costs possibly incurred by private sector:

There will not be a significant fiscal effect on the private sector. The change in the CPI assuming past trends in the CPI, would adjust the minimum cost or payment requirement approximately $5.00 annually. Further, since the first year of independent review that included a retroactive review period, the number of requests for independent review have been steady with approximately 160 requests for independent review last year. The Commissioner does not anticipate the annual adjustment in the minimum cost or payment will alter the number of requests for independent review.

11. Effect on Small Business: There should be no effect on small business. The rule proposes to adjust the minimum cost or payment with which an insured would need to meet prior to obtaining independent review, provided other statutory requirements are also met.

12. Agency contact person: A copy of the full text of the proposed rule changes, analysis and fiscal estimate may be obtained from the OCI internet WEB site at http://oci.wi.gov/ocirules.htm or by contacting Inger Williams, Services Section, Office of the Commissioner of Insurance, at [phone], [e-mail] or at 125 South Webster Street – 2nd Floor, PO Box 7873, Madison WI 53707-7873.

13. Place where comments are to be submitted and deadline for submission:

Mailing address:

Julie E. Walsh

Legal Unit - OCI Rule Comment for Rule 18.10 (2)(d)

Office of the Commissioner of Insurance

PO Box 7873

Madison WI 53707-7873

Street address:

Julie E. Walsh

Legal Unit - OCI Rule Comment for Rule 18.10 (2)(d)

Office of the Commissioner of Insurance

125 South Webster St – 2nd Floor

Madison WI 53702

The deadline for submitting comments is 4:00 p.m. on the 10th day after the date for the hearing stated in the Notice of Hearing.

Fiscal Estimate

There will be no state or local government fiscal effect.

Initial regulatory flexibility analysis

This rule does not impose any additional requirements on small businesses.

Agency contact

A copy of the full text of the proposed rule changes, analysis and fiscal estimate may be obtained from the OCI internet WEB site at http://oci.wi.gov/ocirules.htm or by contacting Inger Williams, Services Section, Office of the Commissioner of Insurance, at [phone], [e-mail] or at 125 South Webster Street – 2nd Floor, PO Box 7873, Madison WI 53707-7873.

Notice of Hearings

Natural Resources

(Fish, Game, etc., Chs. NR 1—)

[CR 04-078]

NOTICE IS HEREBY GIVEN that pursuant to ss. 29.014, 29.063, 29.335 and 227.11 (2) (a), Stats., interpreting ss. 29.014, 29.063 and 29.335, Stats., the Department of Natural Resources will hold public hearings on revisions to chs. NR 10 and 19, Wis. Adm. Code, relating to regulation of baiting and feeding to control and manage chronic wasting disease and bovine tuberculosis. The proposed rule will continue the ban on the placement of feed for deer in those areas at highest risk for chronic wasting disease (CWD), as required by 2003 Wisconsin Act 240. The proposed rule bans baiting and feeding in any county where CWD eradication zones or herd reduction zones have been established in the county or a portion of the county; or a CWD or bovine tuberculosis positive captive or free-roaming, domestic or wild animal has been confirmed after December 31, 1997 from the county; or if the county or portion of the county is within a 10-mile radius of a captive or free-roaming, domestic or wild animal that has been tested and confirmed to be positive for CWD or bovine tuberculosis after December 31, 1997. Additional counties meeting these criteria may be included in the ban by Secretary's Order.

Additionally, this rule clarifies various terms and conditions that were established by Act 240. These clarifications are necessary in order to enforce and explain the rule and regulations pertaining to deer and bear baiting and feeding for the remainder of the state where baiting and feeding is not banned. Act 240 also extended the department's authority to regulate feeding of wildlife. This rule establishes restrictions for wildlife feeding and specifically deer feeding for areas where the feeding of deer is not prohibited.