Wisconsin Senate Bill SB98

Wisconsin 2025-2026 Regular Session

• Introduced: 3/7/25
• Refer: 3/7/25

Caption

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

Impact

The bill's enactment means that cooperatives will have increased flexibility under the service insurance corporation framework, including more autonomy in managing insurance-related operations. It aims to enhance the sustainability and scope of services provided to members, potentially expanding coverage and benefits as the new service insurance corporations can offer insured services more comprehensively than cooperatives may have traditionally been able to do.

Summary

Senate Bill 98 proposes a legislative framework that allows health care cooperatives to convert into service insurance corporations. This is significant because it provides a pathway for these cooperatives, which are member-owned entities primarily set up to create nonprofit health insurance plans, to transition into entities that can offer insured services under a different regulatory structure. This conversion process necessitates the adoption of a conversion plan by the cooperative, which must be approved by the Wisconsin commissioner of insurance prior to member vote.

Contention

There may be notable discussions surrounding this bill regarding the implications for member rights and insurance premiums. Critics could express concerns about the transparency and governance structure of service insurance corporations compared to cooperatives. Additionally, issues may arise around the adequacy of service provisions and member representation post-conversion, as the transition could fundamentally alter the operational and decision-making silos within health care delivery structures in Wisconsin.