Wisconsin Senate Bill SB811

Wisconsin 2023-2024 Regular Session

• Introduced: 12/12/23
• Refer: 12/12/23
• Failed: 4/15/24

Caption

Nonprofit agricultural organization health benefit coverage.

Impact

The passing of SB811 would significantly impact existing state laws concerning health benefit coverage and insurance operations. By allowing these nonprofit entities to provide health benefits without conforming to established insurance laws, the bill could create a new avenue for healthcare access specifically aimed at agricultural workers and their families. While supporters argue this increases flexibility and access to essential health services, detractors may raise concerns about the adequacy and protections typically ensured under regulated insurance plans, potentially leading to gaps in coverage for the members of these organizations.

Summary

Senate Bill 811 establishes provisions for nonprofit agricultural organizations to provide health benefit coverage specifically for their members and their families. The bill exempts such health benefit coverage from the usual requirements and regulations of state insurance law. It defines a 'nonprofit agricultural organization' as one that is member-directed and serves to bolster the economic and social interests of its members, subject to specific criteria, including being established prior to January 1, 1922 and collecting annual dues. This bill aims to enhance the resources available to members of these organizations through tailored health benefit offerings.

Contention

One notable point of contention surrounding SB811 lies in the required disclosure that health benefit coverage provided by these organizations is classified as not being health insurance. This requirement highlights a potential issue regarding the interpretation and understanding of health benefits among members, particularly in light of federal standards for insurance coverage. Critics may worry that this could lead to misunderstandings about the nature of the benefits provided, raising important questions about consumer protection and the adequacy of healthcare coverage for members. Additionally, concerns may also arise regarding the sufficiency of the organizations' capacity to administer these health benefit programs without the typical regulations that apply to insurance carriers.