Amendment ASA1-AB348

LRBs0322/1

PJK:hmh:jf

2001 - 2002 LEGISLATURE

ASSEMBLY SUBSTITUTE AMENDMENT 1, TO 2001 ASSEMBLY BILL 348

February 11, 2002 - Offered by Representatives Underheim and Wasserman.

AB348-ASA1,1,4 An Act to repeal 149.10 (8b) and 149.16 (1); to amend 149.15 (3) (g), 149.16 (4) and 149.16 (5); and to create 149.16 (1m) and 149.16 (3m) of the statutes; relating to: a competitive bidding process for administration of the health insurance risk-sharing plan.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB348-ASA1, s. 1 Section 1. 149.10 (8b) of the statutes is repealed.

AB348-ASA1, s. 2 Section 2. 149.15 (3) (g) of the statutes is amended to read:

AB348-ASA1,1,11 149.15 (3) (g) Establish oversight committees to address various administrative issues, such as financial management of the plan and, selection of the plan administrator, and plan administrator performance standards. A representative of the department may not be the chairperson of any committee established under this paragraph.

AB348-ASA1, s. 3 Section 3. 149.16 (1) of the statutes is repealed.

AB348-ASA1, s. 4 Section 4. 149.16 (1m) of the statutes is created to read:

AB348-ASA1,2,5 149.16 (1m) (a) The plan administrator shall be selected by the department and the board together in a competitive, request-for-proposals process. The department shall work with the board and the plan administrator selection committee established under s. 149.15 (3) (g) to do all of the following:

AB348-ASA1,2,7 1. Develop and issue a request for proposals to be used to solicit contract proposals.

AB348-ASA1,2,9 2. Evaluate technical proposals and accompanying cost proposals submitted in response to the request for proposals.

AB348-ASA1,2,10 3. Request and evaluate best and final offers.

AB348-ASA1,2,12 4. Select a plan administrator and, subject to sub. (5), award a contract for plan administration.

AB348-ASA1,2,16 (b) 1. Any contract awarded under this subsection shall have a term of 3 years, beginning on July 1 and ending on June 30 of the 3rd year beginning after the year in which the contract commences. The start work date of the initial contract awarded under this subsection may not be later than July 1, 2004.

AB348-ASA1,2,19 2. Notwithstanding subd. 1, the department, with the concurrence of the board, may negotiate not more than 2 one-year extensions of a contract described under subd. 1.

AB348-ASA1,2,22 3. Notwithstanding subds. 1. and 2., a contract awarded under this subsection may be extended beyond its 3-year term or a one-year extension in order to facilitate the transition to administration of the plan by a succeeding plan administrator.

AB348-ASA1, s. 5 Section 5. 149.16 (3m) of the statutes is created to read:

AB348-ASA1,3,3 149.16 (3m) The plan administrator shall submit regular reports to the department, the board, and the plan administrator selection committee established under s. 149.15 (3) (g) regarding the operation of the plan. The frequency, content, and form of the reports shall be determined by the department, the board, and the plan administrator selection committee.

AB348-ASA1, s. 6 Section 6. 149.16 (4) of the statutes is amended to read:

AB348-ASA1,3,8 149.16 (4) The If the plan administrator selected under sub. (1m) is the fiscal agent under s. 49.45 (2) (b) 2., the plan administrator shall account for costs related to the plan separately from costs related to medical assistance under subch. IV of ch. 49.

AB348-ASA1, s. 7 Section 7. 149.16 (5) of the statutes is amended to read:

AB348-ASA1,3,12 149.16 (5) The department shall obtain the approval of the board before implementing any contract with the plan administrator, including any extension of a contract under sub. (1m) (b) 2.

AB348-ASA1,3,13 (End)