619.13(1)(a)(a) Every insurer shall participate in the cost of administering the plan, except the commissioner may by rule exempt as a class those insurers whose share as determined under
par. (b) would be so minimal as to not exceed the estimated cost of levying the assessment.
619.13(1)(b)
(b) Except as provided by a rule promulgated under
s. 619.145 (4), every participating insurer shall share in the operating, administrative and subsidy expenses of the plan in proportion to the ratio of the insurer's total health care coverage revenue for residents of this state during the preceding calendar year to the aggregate health care coverage revenue of all participating insurers for residents of this state during the preceding calendar year, as determined by the commissioner.
619.13(1)(c)
(c) If assessments and other receipts by the commissioner, board or administering carrier exceed payments made to alternative plans in accordance with contracts entered into under
s. 619.145 (3) and the actual losses and administrative expenses of the plan, the excess shall be held at interest and used by the board to offset future losses or to reduce plan premiums. In this paragraph, "future losses" includes reserves for incurred but not reported claims.
619.13(1)(d)1.1. Each insurer's proportion of participation under
par. (b) shall be determined annually by the commissioner based on annual statements and other reports filed by the insurer with the commissioner.
619.13(1)(d)2.
2. If the commissioner finds that the commissioner's authority to require insurers to report under
chs. 600 to
646 and
655 is not adequate to permit the commissioner or the board to carry out the commissioner's or the board's responsibilities under this subchapter, the commissioner may promulgate rules requiring insurers to report the information necessary for the commissioner and the board to make the determinations required under this subchapter.
619.13(2)
(2) Any deficit incurred under the plan shall be recouped by assessments apportioned under
sub. (1) by the board among participating insurers, who may recover these amounts in the normal course of their respective businesses without time limitation.
619.135
619.135
Insurer assessments for premium and deductible reductions. 619.135(1)(a)(a) Whenever a person becomes eligible for and obtains coverage under the plan as a result of receiving a notice under
s. 619.12 (1) (am),
(b) or
(c), the commissioner shall levy an assessment of $1,750 against the insurer that issued the notice, except that the commissioner may not levy an assessment if the notice of cancellation under
s. 619.12 (1) (am) was issued on one of the permissible grounds under
s. 631.36 (2) (a).
619.135(1)(b)
(b) An insurer shall pay an assessment levied under
par. (a) within 30 days after receiving a notice of assessment.
619.135(1)(c)
(c) If an assessment levied under
par. (a) is not paid within the time prescribed, the commissioner shall impose a penalty against the insurer in an amount established by the commissioner by rule.
619.135(1)(d)
(d) All assessments and penalties collected under this subsection shall be credited to the appropriation under
s. 20.145 (7) (g).
619.135(2)
(2) If the moneys under
s. 20.145 (7) (a) and
(g) are insufficient to reimburse the plan for premium reductions under
s. 619.165 and deductible reductions under
s. 619.14 (5) (a), or the commissioner determines that the moneys under
s. 20.145 (7) (a) and
(g) will be insufficient to reimburse the plan for premium reductions under
s. 619.165 and deductible reductions under
s. 619.14 (5) (a), the commissioner shall, by rule, increase the amount of the assessment under
sub. (1) (a) or levy an assessment against every insurer, or a combination of both, sufficient to reimburse the plan for premium reductions under
s. 619.165 and deductible reductions under
s. 619.14 (5) (a).
619.135(3)
(3) In addition to the assessments under
subs. (1) (a) and
(2), the commissioner may, by rule, establish an assessment to be levied against each insurer that issues a notice of rejection under
s. 619.12 (1) (a) to a person who becomes eligible for and obtains coverage under the plan as a result of receiving the notice. Any assessments levied and collected under this subsection shall be credited to the appropriation under
s. 20.145 (7) (g).
619.135 History
History: 1991 a. 39.
619.14(1)(a)(a) The plan shall offer in an annually renewable policy the coverage specified in this section for each eligible person. If an eligible person is also eligible for medicare coverage, the plan shall not pay or reimburse any person for expenses paid for by medicare.
619.14(1)(b)
(b) If an individual terminates medical assistance coverage and applies for coverage under the plan within 45 days after the termination and is subsequently found to be eligible under
s. 619.12, the effective date of coverage for the eligible person under the plan shall be the date of termination of medical assistance coverage.
619.14(2)
(2) Major medical expense coverage. 619.14(2)(a)(a) The plan shall provide every eligible person who is not eligible for medicare with major medical expense coverage. Major medical expense coverage offered under the plan shall pay an eligible person's covered expenses, subject to
sub. (3) and deductible and coinsurance payments authorized under
sub. (5), up to a lifetime limit of $500,000 per covered individual. The maximum limit under this paragraph shall not be altered by the board, and no actuarially equivalent benefit may be substituted by the board.
619.14(2)(b)
(b) The plan shall provide an alternative policy for those persons eligible for medicare which reduces the benefits payable under
par. (a) by the amounts paid under medicare.
619.14(3)
(3) Covered expenses. Except as restricted by cost containment provisions under
s. 619.17 (4) and except as reduced by the board under
s. 619.15 (3) (e), covered expenses shall be the usual and customary charges for the services provided by persons licensed under
ch. 446. Except as restricted by cost containment provisions under
s. 619.17 (4) and except as reduced by the board under
s. 619.15 (3) (e), covered expenses shall also be the usual and customary charges for the following services and articles when prescribed by a physician licensed under
ch. 448 or in another state:
619.14(3)(b)
(b) Basic medical-surgical services, including both in-hospital and out-of-hospital medical and surgical services, diagnostic services, anesthesia services and consultation services, subject to the limitations in this subsection.
619.14(3)(c)1.1. Inpatient treatment in a hospital as defined in
s. 632.89 (1) (c) or in a medical facility in another state approved by the board, for up to 30 days' confinement per calendar year due to alcoholism or drug abuse and up to 60 days' confinement per calendar year for nervous and mental disorders.
619.14(3)(c)2.
2. Outpatient services as defined in
s. 632.89 (1) (e) for alcoholism, drug abuse or nervous and mental disorders, as follows:
619.14(3)(c)2.b.
b. An additional $2,500 of covered expenses per calendar year, after satisfaction of the deductible and coinsurance requirements under
sub. (5).
619.14(3)(c)3.
3. Subject to the limits under
subd. 2. and to rules promulgated by the commissioner, services for the chronically mentally ill in community support programs operated under
s. 51.421.
619.14(3)(d)
(d) Drugs requiring a physician's prescription.
619.14(3)(e)
(e) Services of a licensed skilled nursing facility for eligible persons eligible for medicare, to the extent required by
s. 632.895 (3) and for not more than an aggregate 120 days during a calendar year, if the services are of the type which would qualify as reimbursable services under medicare. Coverage under this paragraph which is not required by
s. 632.895 (3) is subject to the deductible and coinsurance requirements under
sub. (5).
619.14(3)(g)
(g) Use of radium or other radioactive materials.
619.14(3)(k)
(k) Rental or purchase, as appropriate, of durable medical equipment or disposable medical supplies, other than eyeglasses and hearing aids.
619.14(3)(m)
(m) Oral surgery for partially or completely unerupted, impacted teeth and oral surgery with respect to tissues of the mouth when not performed in connection with the extraction or repair of teeth.
619.14(3)(o)
(o) Transportation provided by a licensed ambulance service to the nearest facility qualified to treat the condition.
619.14(3)(p)
(p) For persons not eligible for medicare, services of a licensed skilled nursing facility, only to the extent required by
s. 632.895 (3).
619.14(3)(r)
(r) Processing charges for blood including, but not limited to, the cost of collecting, testing, fractionating and distributing blood.
619.14(4)
(4) Exclusions. Covered expenses shall not include the following:
619.14(4)(a)
(a) Any charge for treatment for cosmetic purposes other than surgery for the repair or treatment of an injury or a congenital bodily defect.
619.14(4)(b)
(b) Care which is primarily for custodial or domiciliary purposes which do not qualify as eligible services under medicare.
619.14(4)(c)
(c) Any charge for confinement in a private room to the extent it is in excess of the institution's charge for its most common semiprivate room, unless a private room is prescribed as medically necessary by a physician. If the institution does not have semiprivate rooms, its most common semiprivate room charge shall be 90% of its lowest private room charge.
619.14(4)(d)
(d) That part of any charge for services or articles rendered or prescribed by a physician, dentist or other health care personnel which exceeds the prevailing charge in the locality where the service is provided or any charge not medically necessary.
619.14(4)(e)
(e) Any charge for services or articles the provision of which is not within the scope of authorized practice of the institution or individual providing the services or articles.
619.14(4)(f)
(f) Any expense incurred prior to the effective date of coverage under the plan for the person on whose behalf the expense is incurred.
619.14(4)(i)
(i) Routine physical examinations, including routine examinations to determine the need for eyeglasses and hearing aids.
619.14(4)(k)
(k) Services of blood donors and any fee for failure to replace the first 3 pints of blood provided to an eligible person each calendar year.
619.14(4)(L)
(L) Personal supplies or services provided by a hospital or nursing home, or any other nonmedical or nonprescribed supply or service.
619.14(4)(m)
(m) Experimental treatment, as determined by the board or its designee.
619.14(5)
(5) Premiums, deductibles and coinsurance. 619.14(5)(a)(a) The plan shall offer a deductible in combination with appropriate premiums determined under this subchapter for major medical expense coverage required under this section. For coverage offered to those persons eligible for medicare, the plan shall offer a deductible equal to the deductible charged by part A of title XVIII of the federal social security act, as amended. The deductible amounts for all other eligible persons shall be dependent upon household income as determined under
s. 619.165. For eligible persons under
s. 619.165 (1) (b) 1., the deductible shall be $500. For eligible persons under
s. 619.165 (1) (b) 2., the deductible shall be $600. For eligible persons under
s. 619.165 (1) (b) 3., the deductible shall be $700. For eligible persons under
s. 619.165 (1) (b) 4., the deductible shall be $800. For all other eligible persons who are not eligible for medicare, the deductible shall be $1,000. With respect to all eligible persons, expenses used to satisfy the deductible during the last 90 days of a calendar year shall also be applied to satisfy the deductible for the following calendar year. The schedule of premiums shall be promulgated by rule by the commissioner. The commissioner shall set rates at 60% of the operating and administrative costs of the plan.
619.14(5)(b)
(b) Except as provided in
par. (c), if the covered costs incurred by the eligible person exceed the deductible for major medical expense coverage in a calendar year, the plan shall pay at least 80% of any additional covered costs incurred by the person during the calendar year.
619.14(5)(c)
(c) If the aggregate of the covered costs not paid by the plan under
par. (b) and the deductible exceeds $500 for an eligible person receiving medicare, $2,000 for any other eligible person during a calendar year or $4,000 for all eligible persons in a family, the plan shall pay 100% of all covered costs incurred by the eligible person during the calendar year after the payment ceilings under this paragraph are exceeded.
619.14(5)(d)
(d) Notwithstanding
pars. (a) to
(c), the board may establish different deductible amounts, a different coinsurance percentage and different covered costs and deductible aggregate amounts from those specified in
pars. (a) to
(c) in accordance with cost containment provisions established by the commissioner under
s. 619.17 (4) (a) and for individuals who enroll in an alternative plan under
s. 619.145.
619.14(5)(e)
(e) Using the procedure under
s. 227.24, the commissioner may promulgate rules under
par. (a) for the schedule of premiums for the period before the effective date of any permanent rules promulgated under
par. (a) for the schedule of premiums, but not to exceed the period authorized under
s. 227.24 (1) (c) and
(2). Notwithstanding
s. 227.24 (1) and
(3), the commissioner is not required to make a finding of emergency.
619.14(6)
(6) Preexisting conditions. No person who obtains coverage under the plan may be covered for any preexisting condition during the first 6 months of coverage under the plan if the person was diagnosed or treated for that condition during the 6 months immediately preceding the filing of an application with the plan.
619.14(7)(a)(a) Covered expenses under the plan shall not include any charge for care for injury or disease for which benefits are payable without regard to fault under coverage statutorily required to be contained in any motor vehicle or other liability insurance policy or equivalent self-insurance, for which benefits are payable under a worker's compensation or similar law, or for which benefits are payable under another policy of health care insurance, medicare, medical assistance or any other governmental program, except as otherwise provided by law.
619.14(7)(b)
(b) The board has a cause of action against an eligible participant for the recovery of the amount of benefits paid which are not for covered expenses under the plan. Benefits under the plan may be reduced or refused as a setoff against any amount recoverable under this paragraph.
619.14(7)(c)
(c) The board is subrogated to the rights of an eligible person to recover special damages for illness or injury to the person caused by the act of a 3rd person to the extent that benefits are provided under the plan.
619.145(1)(1) The board may offer to persons eligible for coverage under
s. 619.12 the opportunity to enroll, on a voluntary basis, in an alternative plan that uses managed care and that the commissioner determines provides benefits that are substantially equivalent to or greater than the benefits provided under the plan. A person who enrolls in an alternative plan under this section is ineligible for coverage under the plan for 12 months after enrolling in the alternative plan.
619.145(2)
(2) An alternative plan that provides coverage under this section to persons eligible for coverage under
s. 619.12 may limit the number of such persons who may enroll in the alternative plan. Any such enrollment limitation may not be based on medical underwriting considerations.
619.145(3)
(3) An alternative plan that provides coverage under this section to persons eligible for coverage under
s. 619.12 shall contract with the board to provide such coverage. The contract shall specify all of the following:
619.145(3)(b)
(b) Requirements for managed care and marketing practices.
619.145(3)(c)
(c) Grievance procedures for persons with coverage under the alternative plan.
619.145(3)(d)
(d) The payment of fees or premiums to the alternative plan for the coverage provided to persons eligible under
s. 619.12.
619.145(3)(e)
(e) Subject to
sub. (4), a reduction in the alternative plan's assessment under
s. 619.13 for operating and administrative, but not subsidy, expenses of the plan.
619.145(3)(f)
(f) Any other terms that the board considers necessary.
619.145(4)
(4) A contract under
sub. (3) may not provide for a reduction in the assessment under
s. 619.13 against an alternative plan unless the assessment reduction has been adopted by rule under
s. 619.15 (4) (e).
619.145 History
History: 1991 a. 269.
619.15
619.15
Board of governors. 619.15(1)(1) The plan shall operate subject to the supervision and approval of a board consisting of representatives of 2 participating insurers which are nonprofit corporations, 2 other participating insurers, and 3 public members, appointed by the commissioner for staggered 3-year terms. In addition, the commissioner or a designated representative from the office of the commissioner shall be a member of the board. The public members shall not be professionally affiliated with the practice of medicine, a hospital or an insurer. At least 2 of the public members shall be individuals reasonably expected to qualify for coverage under the plan or the parent or spouse of such an individual. The commissioner or the commissioner's representative shall be the chairperson of the board. Board members, except the commissioner or the commissioner's representative, shall be compensated at the rate of $50 per diem plus actual and necessary expenses.
619.15(2)
(2) Annually, the board shall make a report to the members of the plan and to the chief clerk of each house of the legislature, for distribution to the appropriate standing committees under
s. 13.172 (3), summarizing the activities of the plan in the preceding calendar year. The annual report shall define the cost burden imposed by the plan on all policyholders in this state.
