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1995 - 1996 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
To 1995 ASSEMBLY BILL 1044
May 1, 1996 - Offered by Joint committee on Finance.
AB1044-ASA1,1,11 1An Act to repeal 20.145 (7), 71.65 (4), 71.78 (4) (i), 71.80 (13), subchapter I (title)
2of chapter 619 [precedes 619.01], subchapter II of chapter 619 [precedes
3619.10], 631.36 (7) (a) 1., 632.785 and 635.254 (3); to renumber subchapter I
4of chapter 619 [precedes 619.01]; to consolidate, renumber and amend
5631.36 (7) (a) (intro.) and 2.; to amend 185.983 (1) (intro.), 613.03 (3), 614.05
6(1) and 631.36 (7) (b); and to create 20.145 (7) (b), 619.115, 619.14 (5) (am) and
7619.14 (5) (e) of the statutes; relating to: mitigating the effects of a rate
8increase under the health insurance risk-sharing plan, sunsetting that plan,
9requiring a study and proposed legislation for a replacement health care
10program for that plan, providing an exemption from emergency rule procedures
11and making an appropriation.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB1044-ASA1, s. 1 12Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
13the following amounts for the purposes indicated: - See PDF for table PDF
AB1044-ASA1, s. 2 1Section 2. 20.145 (7) of the statutes, as affected by 1995 Wisconsin Act .... (this
2act), is repealed.
AB1044-ASA1, s. 3 3Section 3. 20.145 (7) (b) of the statutes is created to read:
AB1044-ASA1,2,54 20.145 (7) (b) Mitigation of rate increase. The amounts in the schedule for the
5purpose specified in s. 619.14 (5) (am).
AB1044-ASA1, s. 4 6Section 4. 71.65 (4) of the statutes is repealed.
AB1044-ASA1, s. 5 7Section 5. 71.78 (4) (i) of the statutes is repealed.
AB1044-ASA1, s. 6 8Section 6. 71.80 (13) of the statutes is repealed.
AB1044-ASA1, s. 7 9Section 7. 185.983 (1) (intro.) of the statutes, as affected by 1995 Wisconsin
10Act 289
, is amended to read:
AB1044-ASA1,2,1611 185.983 (1) (intro.)  Every such voluntary nonprofit sickness care plan shall be
12exempt from chs. 600 to 646, with the exception of ss. 601.04, 601.13, 601.31, 601.41,
13601.42, 601.43, 601.44, 601.45, 611.67, 619.04, 628.34 (10), 631.89, 631.93, 632.72
14(2), 632.745, 632.747, 632.749, 632.775, 632.79, 632.795, 632.87 (2m), (3), (4) and (5),
15632.895 (5), (9) and (10), 632.896 and 632.897 (10), subch. II of ch. 619 and chs. 609,
16630, 635, 645 and 646, but the sponsoring association shall:
AB1044-ASA1, s. 8 17Section 8. 613.03 (3) of the statutes is amended to read:
AB1044-ASA1,3,318 613.03 (3) Applicability of insurance laws. Except as otherwise specifically
19provided, service insurance corporations organized or operating under this chapter

1are subject to subch. II of ch. 619 and ss. 610.01, 610.11, 610.21, 610.23 and 610.24
2and chs. 600, 601, 609, 617, 620, 623, 625, 627, 628, 631, 632, 635 and 645 and to no
3other insurance laws.
AB1044-ASA1, s. 9 4Section 9. 614.05 (1) of the statutes, as affected by 1995 Wisconsin Act 27, is
5amended to read:
AB1044-ASA1,3,76 614.05 (1) Chapters 611 and 619. No section of ch. 611 or subch. I of ch. 619
7applies to fraternals unless it is specifically made applicable by this chapter.
AB1044-ASA1, s. 10 8Section 10. Subchapter I (title) of chapter 619 [precedes 619.01] of the statutes
9is repealed.
AB1044-ASA1, s. 11 10Section 11. Subchapter I of chapter 619 [precedes 619.01] of the statutes is
11renumbered chapter 619.
AB1044-ASA1, s. 12 12Section 12. Subchapter II of chapter 619 [precedes 619.10] of the statutes, as
13affected by 1995 Wisconsin Acts 27 and .... (this act), is repealed.
AB1044-ASA1, s. 13 14Section 13. 619.115 of the statutes is created to read:
AB1044-ASA1,3,21 15619.115 Replacement and repeal of plan. If before January 1, 1998, the
16commissioner determines that a health care program that replaces the plan is
17enacted into law in this state and is operational, on January 1, 1998, the
18commissioner shall certify in writing that determination to the revisor of statutes.
19Upon receiving the certification, the revisor of statutes shall publish notice in the
20Wisconsin administrative register of the determination, the date of the certification
21and that on the date of the certification this subchapter is repealed.
AB1044-ASA1, s. 14 22Section 14. 619.14 (5) (am) of the statutes is created to read:
AB1044-ASA1,4,423 619.14 (5) (am) The commissioner shall use the moneys appropriated under s.
2420.145 (7) (b) to mitigate the effects of a rate increase on July 1, 1996, on eligible
25persons who do not receive a premium subsidy under s. 619.165 and who have a

1household income, as defined in s. 71.52 (5), that is less than an amount determined
2by the commissioner, except that the amount may not exceed $40,000. The
3commissioner may use the moneys to mitigate the effects through any means that
4the commissioner determines is appropriate.
AB1044-ASA1, s. 15 5Section 15. 619.14 (5) (e) of the statutes is created to read:
AB1044-ASA1,4,116 619.14 (5) (e) Using the procedure under s. 227.24, the commissioner may
7promulgate rules under par. (a) for the schedule of premiums for the period before
8the effective date of any permanent rules promulgated under par. (a) for the schedule
9of premiums, but not to exceed the period authorized under s. 227.24 (1) (c) and (2).
10Notwithstanding s. 227.24 (1) and (3), the commissioner is not required to make a
11finding of emergency.
AB1044-ASA1, s. 16 12Section 16. 631.36 (7) (a) (intro.) and 2. of the statutes are consolidated,
13renumbered 631.36 (7) (a) and amended to read:
AB1044-ASA1,4,1814 631.36 (7) (a) Notice of cancellation or nonrenewal required under sub. (2) (b)
15or (4) is not effective: 2. Unless unless the notice contains adequate instructions to
16the policyholder for applying for insurance through a risk-sharing plan under subch.
17I of
ch. 619, if a risk-sharing plan exists under subch. I of ch. 619 for the kind of
18coverage being canceled or nonrenewed, except as provided in par. (b).
AB1044-ASA1, s. 17 19Section 17. 631.36 (7) (a) 1. of the statutes is repealed.
AB1044-ASA1, s. 18 20Section 18. 631.36 (7) (b) of the statutes is amended to read:
AB1044-ASA1,4,2321 631.36 (7) (b) Paragraph (a) 2. does not apply to a notice of cancellation or
22nonrenewal issued by the mandatory health care liability risk-sharing plan
23established under s. 619.04.
AB1044-ASA1, s. 19 24Section 19. 632.785 of the statutes is repealed.
AB1044-ASA1, s. 20 25Section 20. 635.254 (3) of the statutes is repealed.
AB1044-ASA1, s. 21
1Section 21. Nonstatutory provisions.
AB1044-ASA1,5,22 (1) Study on replacement for the health insurance risk-sharing plan.
AB1044-ASA1,5,73 (a) The office of the commissioner of insurance and the department of health
4and family services shall conduct a study for the purpose of establishing a
5replacement health care program for the health insurance risk-sharing plan under
6subchapter II of chapter 619 of the statutes, as affected by this act. The study shall
7include an examination of all of the following:
AB1044-ASA1,5,118 1. The feasibility of establishing a basic health insurance plan for different
9groups of people, including low-income persons, persons with coverage under the
10health insurance risk-sharing plan and recipients of medical assistance or of health
11care benefits under another public assistance program.
AB1044-ASA1,5,1512 2. The feasibility of providing health care coverage for persons with coverage
13under the health insurance risk-sharing plan under the Wisconsin works health
14plan or under a health care plan under subchapter IV of chapter 40 of the statutes
15covering state employes.
AB1044-ASA1,5,1916 3. The availability of medical assistance block grants from the federal
17government and whether those block grants, if established before the completion of
18the study, could be used to provide coverage for persons with coverage under the
19health insurance risk-sharing plan.
AB1044-ASA1,5,2220 4. The feasibility of providing funding for the replacement health care program
21through a surcharge on health care providers that could be passed on by the health
22care providers to 3rd-party payers and others.
AB1044-ASA1,6,223 5. Whether the replacement health care program should be required to use
24managed care and whether health maintenance organizations should be required to
25provide coverage under the replacement health care program as a condition of

1providing coverage to state employes under a health care plan under subchapter IV
2of chapter 40 of the statutes.
AB1044-ASA1,6,43 6. Whether, and what types of, health insurance market reforms would
4alleviate some or all of the need for a replacement health care program.
AB1044-ASA1,6,65 7. The benefits to be provided, and the reimbursement rates for health care
6providers, under the replacement health care program.
AB1044-ASA1,6,97 8. Whether administrative savings could be achieved by administering the
8replacement health care program jointly with another public health care program or
9plan.
AB1044-ASA1,6,1410 (b) No later than February 1, 1997, the office and the department shall submit
11to the legislature in the manner provided under section 13.172 (2) of the statutes a
12report of the study and proposed legislation establishing and implementing a
13replacement health care program for the health insurance risk-sharing plan under
14subchapter II of chapter 619 of the statutes, as affected by this act.
AB1044-ASA1, s. 22 15Section 22. Effective dates. This act takes effect on the day after
16publication, except as follows:
AB1044-ASA1,6,2317 (1) Repeal of health insurance risk-sharing plan. The treatment of sections
1871.65 (4), 71.78 (4) (i), 71.80 (13), 185.983 (1) (intro.), 613.03 (3), 614.05 (1), 631.36
19(7) (a) (intro.), 1. and 2. and (b), 632.785 and 635.254 (3) of the statutes, the repeal
20of section 20.145 (7) and subchapters I (title) and II of chapter 619 of the statutes and
21the renumbering of subchapter I of chapter 619 of the statutes take effect on the day
22on which the commissioner of insurance makes the certification to the revisor of
23statutes under section 619.115 of the statutes, as created by this act.
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