Wisconsin Assembly Bill AB107

Wisconsin 2025-2026 Regular Session

• Introduced: 3/11/25
• Refer: 3/11/25

Caption

Conversion of cooperative associations organized to establish and operate nonprofit plans or programs for health care into service insurance corporations.

Impact

The impact of AB 107 on state laws includes the introduction of a new statute, §613.76, that details the conversion process for health care cooperatives. This statute specifies a series of requirements such as the need for a conversion plan, commissioner's approval, and member consent prior to any change in organizational structure. With the passage of this bill, cooperatives could potentially ease the process for transforming into service insurance corporations, thereby allowing for greater flexibility in how they provide health care services to their members.

Summary

Assembly Bill 107 proposes to allow health care cooperatives in Wisconsin to convert their structure into service insurance corporations. This legislative change is pertinent as it establishes a legal framework for the transition between cooperative associations, which are member-owned entities, and service insurance corporations, which provide insured health care benefits. The bill outlines the necessary steps for such conversions, emphasizing member approval and adherence to specific regulatory requirements set forth by the state insurance commissioner.

Contention

Notable points of contention surrounding AB 107 may arise from concerns about the implications of converting cooperative associations into insurance corporations. Advocates argue that this conversion could lead to improved efficiency and flexibility in delivering health care services, aligning with changing market dynamics. However, critics may voice apprehension about potential shifts in governance and profit motives, questioning whether such a change would prioritize member interests or lead to a focus on profitability instead of delivering quality health care.