Wisconsin 2023-2024 Regular Session

Wisconsin Senate Bill SB811 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 SENATE BILL 811
5	5	December 12, 2023 - Introduced by Senators TESTIN, COWLES, FEYEN, QUINN and
6	6	TOMCZYK, cosponsored by Representatives KURTZ, MOSES, DITTRICH, BEHNKE,
7	7	BINSFELD, BROOKS, EDMING, GOEBEN, GREEN, GUNDRUM, GUSTAFSON, KRUG,
8	8	MAGNAFICI, MURSAU, NEDWESKI, NOVAK, O'CONNOR, OLDENBURG, PENTERMAN,
9	9	RETTINGER, SCHMIDT, SCHUTT, SPIROS, SUMMERFIELD, TRANEL and VANDERMEER.
10	10	Referred to Committee on Insurance and Small Business.
11	11	AN ACT to create 146.76 and 600.01 (1) (b) 14. of the statutes; relating to:
12	12	nonprofit agricultural organization health benefit coverage.
13	13	Analysis by the Legislative Reference Bureau
14	14	This bill allows nonprofit agricultural organizations to provide health benefit
15	15	coverage to its members and its members' families and exempts the health benefit
16	16	coverage and the nonprofit agricultural organization offering the health benefit
17	17	coverage from the application of insurance law. Under the bill, “nonprofit
18	18	agricultural organization” is defined to mean a member-directed agricultural
19	19	organization whose purpose is to represent, protect, and enhance the business,
20	20	economic, social, and educational interests of members located throughout the state
21	21	and to which certain conditions apply including that the organization is exempt from
22	22	federal tax, that the organization is organized as a cooperative in this state, that the
23	23	organization was organized prior to January 1, 1922, that the organization collects
24	24	annual dues from its members, that the organization is governed by a board of
25	25	directors that is elected by its members, and that the organization has a wholly
26	26	owned subsidiary through which health benefit coverage may be administered.
27	27	If a nonprofit agricultural organization offers to provide health benefit
28	28	coverage, the bill requires the nonprofit agricultural organization to satisfy certain
29	29	criteria. First, a nonprofit agricultural organization must provide written notice to
30	30	its members prior to enrollment that any health benefit coverage provided by the
31	31	nonprofit agricultural organization is not health insurance and that the health
32	32	benefit coverage alone may not satisfy individual or employer insurance coverage
33	33	requirements under federal law. Further, a nonprofit agricultural organization must
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37	37	SENATE BILL 811
38	38	reinsure its risks under the health benefit coverage it provides with a company
39	39	authorized to transact reinsurance business in this state. Additionally, the bill
40	40	prohibits nonprofit agricultural organizations from taking certain action with
41	41	respect to the health benefit coverage that it provides. The bill prohibits nonprofit
42	42	agricultural organizations from excluding or refusing to provide coverage for
43	43	services provided by a health care provider if the health benefit coverage provided
44	44	by the nonprofit agricultural organization covers those services when provided by a
45	45	physician. Further, the bill prohibits nonprofit agricultural organizations from
46	46	imposing a preexisting condition exclusion for any condition for a period of more than
47	47	six months if the health benefit coverage would otherwise include coverage of the
48	48	condition.
49	49	The people of the state of Wisconsin, represented in senate and assembly, do
50	50	enact as follows:
51	51	SECTION 1. 146.76 of the statutes is created to read:
52	52	146.76 Nonprofit agricultural organization health benefit coverage.
53	53	(1) In this section:
54	54	(a) “Health care provider” means a health care provider under s. 146.81 (1) (a)
55	55	to (p) that provides health care services within the provider's scope of practice.
56	56	(b) “Nonprofit agricultural organization” means a member-directed
57	57	agricultural organization whose purpose is to represent, protect, and enhance the
58	58	business, economic, social, and educational interests of members located throughout
59	59	the state and to which all of the following apply:
60	60	1. The organization is described in section 501 (c) (5) of the Internal Revenue
61	61	Code and is exempt from federal tax under section 501 (a) of the Internal Revenue
62	62	Code.
63	63	2. The organization is organized as a cooperative in this state under ch. 185.
64	64	3. The organization was established prior to January 1, 1922.
65	65	4. The organization collects annual dues from its members.
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83	83	SECTION 1
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85	85	5. The organization is governed by a board of directors that is elected by its
86	86	members.
87	87	6. The organization has a wholly owned subsidiary through which health
88	88	benefit coverage may be administered.
89	89	(2) A nonprofit agricultural organization may provide health benefit coverage
90	90	for the sole benefit of its members and its members' family.
91	91	(3) If a nonprofit agricultural organization offers to provide health benefit
92	92	coverage under sub. (2), the nonprofit agricultural organization shall, prior to
93	93	enrollment, provide written notice to its members, and require a signature from its
94	94	members acknowledging, that any health benefit coverage provided by the nonprofit
95	95	agricultural organization is not health insurance and that the health benefit
96	96	coverage alone may not satisfy individual or employer insurance coverage
97	97	requirements under federal law.
98	98	(4) No nonprofit agricultural organization that offers to provide health benefit
99	99	coverage under sub. (2) may exclude or refuse to provide coverage for services
100	100	provided by a health care provider if the health benefit coverage covers those services
101	101	when provided by a physician licensed under subch. II of ch. 448.
102	102	(5) No nonprofit agricultural organization that offers to provide health benefit
103	103	coverage under sub. (2) may impose a preexisting condition exclusion for any
104	104	condition for a period of more than 6 months if the health benefit coverage would
105	105	otherwise include coverage of the condition.
106	106	(6) A nonprofit agricultural organization that offers to provide health benefit
107	107	coverage under sub. (2) shall reinsure its risks under the health benefit coverage it
108	108	provides with a company authorized to transact reinsurance business in this state.
109	109	SECTION 2. 600.01 (1) (b) 14. of the statutes is created to read:
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136	136	SECTION 2 SENATE BILL 811
137	137	600.01 (1) (b) 14. Nonprofit agricultural organization health benefit coverage
138	138	and the nonprofit agricultural organization offering the coverage under s. 146.76.
139	139	(END)
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