Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB860 Compare Versions

Only one version of the bill is available at this time.

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3	3	2023 - 2024 LEGISLATURE
4	4	2023 ASSEMBLY BILL 860
5	5	December 22, 2023 - Introduced by Representatives KURTZ, MOSES, DITTRICH,
6	6	BEHNKE, BINSFELD, BROOKS, EDMING, GOEBEN, GREEN, GUNDRUM, GUSTAFSON,
7	7	KRUG, MAGNAFICI, MURSAU, NEDWESKI, NOVAK, O'CONNOR, OLDENBURG,
8	8	PENTERMAN, RETTINGER, SCHMIDT, SCHUTT, SPIROS, SUMMERFIELD, TRANEL,
9	9	VANDERMEER and WITTKE, cosponsored by Senators TESTIN, COWLES, FEYEN,
10	10	QUINN and TOMCZYK. Referred to Committee on Insurance.
11	11	*AUTHORS SUBJECT TO CHANGE*
12	12	AN ACT to create 146.76 and 600.01 (1) (b) 14. of the statutes; relating to:
13	13	nonprofit agricultural organization health benefit coverage.
14	14	Analysis by the Legislative Reference Bureau
15	15	This bill allows nonprofit agricultural organizations to provide health benefit
16	16	coverage to its members and its members' families and exempts the health benefit
17	17	coverage and the nonprofit agricultural organization offering the health benefit
18	18	coverage from the application of insurance law. Under the bill, “nonprofit
19	19	agricultural organization” is defined to mean a member-directed agricultural
20	20	organization whose purpose is to represent, protect, and enhance the business,
21	21	economic, social, and educational interests of members located throughout the state
22	22	and to which certain conditions apply including that the organization is exempt from
23	23	federal tax, that the organization is organized as a cooperative in this state, that the
24	24	organization was organized prior to January 1, 1922, that the organization collects
25	25	annual dues from its members, that the organization is governed by a board of
26	26	directors that is elected by its members, and that the organization has a wholly
27	27	owned subsidiary through which health benefit coverage may be administered.
28	28	If a nonprofit agricultural organization offers to provide health benefit
29	29	coverage, the bill requires the nonprofit agricultural organization to satisfy certain
30	30	criteria. First, a nonprofit agricultural organization must provide written notice to
31	31	its members prior to enrollment that any health benefit coverage provided by the
32	32	nonprofit agricultural organization is not health insurance and that the health
33	33	benefit coverage alone may not satisfy individual or employer insurance coverage
34	34	requirements under federal law. Further, a nonprofit agricultural organization must
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37	37	JPC:cdc
38	38	ASSEMBLY BILL 860
39	39	reinsure its risks under the health benefit coverage it provides with a company
40	40	authorized to transact reinsurance business in this state. Additionally, the bill
41	41	prohibits nonprofit agricultural organizations from taking certain action with
42	42	respect to the health benefit coverage that it provides. The bill prohibits nonprofit
43	43	agricultural organizations from excluding or refusing to provide coverage for
44	44	services provided by a health care provider if the health benefit coverage provided
45	45	by the nonprofit agricultural organization covers those services when provided by a
46	46	physician. Further, the bill prohibits nonprofit agricultural organizations from
47	47	imposing a preexisting condition exclusion for any condition for a period of more than
48	48	six months if the health benefit coverage would otherwise include coverage of the
49	49	condition.
50	50	The people of the state of Wisconsin, represented in senate and assembly, do
51	51	enact as follows:
52	52	SECTION 1. 146.76 of the statutes is created to read:
53	53	146.76 Nonprofit agricultural organization health benefit coverage.
54	54	(1) In this section:
55	55	(a) “Health care provider” means a health care provider under s. 146.81 (1) (a)
56	56	to (p) that provides health care services within the provider's scope of practice.
57	57	(b) “Nonprofit agricultural organization” means a member-directed
58	58	agricultural organization whose purpose is to represent, protect, and enhance the
59	59	business, economic, social, and educational interests of members located throughout
60	60	the state and to which all of the following apply:
61	61	1. The organization is described in section 501 (c) (5) of the Internal Revenue
62	62	Code and is exempt from federal tax under section 501 (a) of the Internal Revenue
63	63	Code.
64	64	2. The organization is organized as a cooperative in this state under ch. 185.
65	65	3. The organization was established prior to January 1, 1922.
66	66	4. The organization collects annual dues from its members.
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84	84	SECTION 1
85	85	ASSEMBLY BILL 860
86	86	5. The organization is governed by a board of directors that is elected by its
87	87	members.
88	88	6. The organization has a wholly owned subsidiary through which health
89	89	benefit coverage may be administered.
90	90	(2) A nonprofit agricultural organization may provide health benefit coverage
91	91	for the sole benefit of its members and its members' family.
92	92	(3) If a nonprofit agricultural organization offers to provide health benefit
93	93	coverage under sub. (2), the nonprofit agricultural organization shall, prior to
94	94	enrollment, provide written notice to its members, and require a signature from its
95	95	members acknowledging, that any health benefit coverage provided by the nonprofit
96	96	agricultural organization is not health insurance and that the health benefit
97	97	coverage alone may not satisfy individual or employer insurance coverage
98	98	requirements under federal law.
99	99	(4) No nonprofit agricultural organization that offers to provide health benefit
100	100	coverage under sub. (2) may exclude or refuse to provide coverage for services
101	101	provided by a health care provider if the health benefit coverage covers those services
102	102	when provided by a physician licensed under subch. II of ch. 448.
103	103	(5) No nonprofit agricultural organization that offers to provide health benefit
104	104	coverage under sub. (2) may impose a preexisting condition exclusion for any
105	105	condition for a period of more than 6 months if the health benefit coverage would
106	106	otherwise include coverage of the condition.
107	107	(6) A nonprofit agricultural organization that offers to provide health benefit
108	108	coverage under sub. (2) shall reinsure its risks under the health benefit coverage it
109	109	provides with a company authorized to transact reinsurance business in this state.
110	110	SECTION 2. 600.01 (1) (b) 14. of the statutes is created to read:
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137	137	SECTION 2 ASSEMBLY BILL 860
138	138	600.01 (1) (b) 14. Nonprofit agricultural organization health benefit coverage
139	139	and the nonprofit agricultural organization offering the coverage under s. 146.76.
140	140	(END)
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