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AB445,43 16Section 43. 230.03 (3) of the statutes is amended to read:
AB445,20,217 230.03 (3) “Agency" means any board, commission, committee, council, or
18department in state government or a unit thereof created by the constitution or
19statutes if such board, commission, committee, council, department, unit, or the
20head thereof, is authorized to appoint subordinate staff by the constitution or
21statute, except the Board of Regents of the University of Wisconsin System, a
22legislative or judicial board, commission, committee, council, department, or unit
23thereof or an authority created under subch. II of ch. 114 or subch. III of ch. 636 or
24under ch. 231, 232, 233, 234, 237, 238, or 279. “Agency" does not mean any local unit

1of government or body within one or more local units of government that is created
2by law or by action of one or more local units of government.
AB445,44 3Section 44. 230.80 (4) of the statutes is amended to read:
AB445,20,104 230.80 (4) “Governmental unit" means any association, authority, board,
5commission, department, independent agency, institution, office, society, or other
6body in state government created or authorized to be created by the constitution or
7any law, including the legislature, the office of the governor, and the courts, but
8excluding the Badger Health Benefit Authority
. “Governmental unit" does not mean
9any political subdivision of the state or body within one or more political subdivisions
10that is created by law or by action of one or more political subdivisions.
AB445,45 11Section 45. 230.90 (1) (c) of the statutes is amended to read:
AB445,20,1912 230.90 (1) (c) “Governmental unit" means any association, authority, board,
13commission, department, independent agency, institution, office, society or other
14body in state government created or authorized to be created by the constitution or
15any law, including the legislature, the office of the governor and the courts.
16“Governmental unit" does not mean the University of Wisconsin Hospitals and
17Clinics Authority, the Badger Health Benefit Authority, or any political subdivision
18of the state or body within one or more political subdivisions which is created by law
19or by action of one or more political subdivisions.
AB445,46 20Section 46. 635.18 (1) of the statutes is amended to read:
AB445,20,2221 635.18 (1) Every Any small employer insurer shall may actively market health
22benefit plan coverage to small employers in the state.
AB445,47 23Section 47. Chapter 636 of the statutes is created to read:
AB445,20,2524 chapter 636
25 health benefit plan exchange
1subchapter I
2 general provisions
AB445,21,3 3636.01 Definitions. In this chapter:
AB445,21,4 4(1) “Authority" means the Badger Health Benefit Authority.
AB445,21,7 5(2) “Educated health care consumer" means an individual who is
6knowledgeable about the health care system and who has background or experience
7in making informed decisions regarding health, medical, and scientific matters.
AB445,21,11 8(3) “Federal act" means the federal Patient Protection and Affordable Care Act,
9P.L. 111-148, as amended by the federal Health Care and Education Reconciliation
10Act of 2010, P.L. 111-152, and any amendments to, or regulations or guidance issued
11under, those acts.
AB445,21,14 12(4) (a) Except as provided in pars. (b) to (e), “health benefit plan" means a policy,
13contract, certificate, or agreement offered or issued by a health carrier to provide,
14deliver, arrange for, pay for, or reimburse any of the costs of health care services.
AB445,21,1515 (b) “Health benefit plan" does not include any of the following:
AB445,21,1716 1. Coverage only for accident, or disability income insurance, or any
17combination of those.
AB445,21,1818 2. Coverage issued as a supplement to liability insurance.
AB445,21,2019 3. Liability insurance, including general liability insurance and automobile
20liability insurance.
AB445,21,2121 4. Worker's compensation or similar insurance.
AB445,21,2222 5. Automobile medical payment insurance.
AB445,21,2323 6. Credit-only insurance.
AB445,21,2424 7. Coverage for on-site medical clinics.
18. Other similar insurance coverage, specified in federal regulations issued
2under P.L. 104-191, under which benefits for health care services are secondary or
3incidental to other insurance benefits.
AB445,22,64 (c) “Health benefit plan" does not include any of the following benefits if they
5are provided under a separate policy, certificate, or contract of insurance or otherwise
6not an integral part of the plan:
AB445,22,77 1. Limited scope dental or vision benefits.
AB445,22,98 2. Benefits for long-term care, nursing home care, home health care,
9community-based care, or any combination of those.
AB445,22,1110 3. Other similar, limited benefits specified in federal regulations issued under
11P.L. 104-191.
AB445,22,1812 (d) “Health benefit plan" does not include any of the following benefits if the
13benefits are provided under a separate policy, certificate, or contract of insurance,
14there is no coordination between the provision of the benefits and any exclusion of
15benefits under any group health plan maintained by the same plan sponsor, and the
16benefits are paid with respect to an event without regard to whether benefits are
17provided with respect to such an event under any group health plan maintained by
18the same plan sponsor:
AB445,22,1919 1. Coverage only for a specified disease or illness.
AB445,22,2020 2. Hospital indemnity or other fixed indemnity insurance.
AB445,22,2221 (e) “Health benefit plan" does not include any of the following if offered as a
22separate policy, certificate, or contract of insurance:
AB445,22,2423 1. Medicare supplemental health insurance as defined under section 1882 (g)
24(1) of the federal Social Security Act.
12. Coverage supplemental to the coverage provided under the Civilian Health
2and Medical Program of the Uniformed Services 10 USC ch. 55.
AB445,23,43 3. Similar coverage supplemental to coverage provided under a group health
AB445,23,11 5(5) “Health carrier" means an entity subject to the insurance laws and rules
6of this state, or subject to the jurisdiction of the commissioner, that contracts or offers
7to contract to provide, deliver, arrange for, pay for, or reimburse any of the costs of
8health care services, including a sickness and accident insurance company, a health
9maintenance organization, a nonprofit hospital and health service corporation, or
10any other entity providing a plan of health insurance, health benefits, or health
AB445,23,13 12(5m) “Minimum essential coverage" has the meaning given in 26 USC 5000A
13(f) (1).
AB445,23,15 14(6) “Qualified dental plan" means a limited scope dental plan that has been
15certified in accordance with s. 636.42 (5).
AB445,23,19 16(7) “Qualified employer" means a small employer that elects to make its
17full-time employees eligible for one or more qualified health plans offered through
18the SHOP Exchange and, at the option of the employer, some or all of its part-time
19employees, provided that the employer satisfies any of the following:
AB445,23,2220 (a) The employer has its principal place of business in this state and elects to
21provide coverage through the SHOP Exchange to all of its eligible employees,
22wherever employed.
AB445,23,2423 (b) The employer elects to provide coverage through the SHOP Exchange to all
24of its eligible employees who are principally employed in this state.
1(8) “Qualified health plan" means a health benefit plan that has in effect a
2certification that the plan meets the criteria for certification described in section
31311 (c) of the federal act and s. 636.42.
AB445,24,5 4(9) “Qualified individual" means an individual, including a minor, who satisfies
5all of the following:
AB445,24,76 (a) The individual is seeking to enroll in a qualified health plan offered to
7individuals through the exchange under subch. II.
AB445,24,88 (b) The individual resides in this state.
AB445,24,109 (c) At the time of enrollment, the individual is not incarcerated in a correctional
10facility, other than incarceration pending the disposition of charges.
AB445,24,1311 (d) The individual is, and is reasonably expected to be for the entire period for
12which enrollment is sought, a citizen or national of the United States or an alien
13lawfully present in the United States.
AB445,24,15 14(10) “Secretary" means the secretary of the federal department of health and
15human services.
AB445,24,17 16(11) “SHOP Exchange" means a small business health options program
17established under s. 636.30 (1) (q).
AB445,24,19 18(12) (a) “Small employer" means an employer that employed an average of not
19more than 100 employees during the preceding calendar year.
AB445,24,2020 (b) For purposes of this subsection, all of the following apply:
AB445,24,22211. All persons treated as a single employer under section 414 (b), (c), (m), or (o)
22of the Internal Revenue Code shall be treated as a single employer.
AB445,24,2423 2. An employer and any predecessor employer shall be treated as a single
13. All employees shall be counted, including part-time employees and
2employees who are not eligible for coverage through the employer.
AB445,25,63 4. If an employer was not in existence during the entire preceding calendar
4year, the determination of whether that employer is a small employer shall be based
5on the average number of employees that it is reasonably expected that employer will
6employ on business days in the current calendar year.
AB445,25,117 5. An employer that makes enrollment in qualified health plans available to
8its employees through the SHOP Exchange and that would cease to be a small
9employer by reason of an increase in the number of its employees shall continue to
10be treated as a small employer for purposes of this chapter as long as it continuously
11makes enrollment through the SHOP Exchange available to its employees.
AB445,25,1312 subchapter II
13 operation of exchange
AB445,25,17 14636.25 General matters. (1) The authority shall establish and operate a
15Wisconsin Health Benefit Exchange and shall make qualified health plans, with
16effective dates on or before January 1, 2018, available to qualified individuals and
17qualified employers.
AB445,25,19 18(2) (a) The authority may not make available any health benefit plan that is
19not a qualified health plan.
AB445,25,2420 (b) The authority shall allow a health carrier to offer a plan that provides
21limited scope dental benefits meeting the requirements of section 9832 (c) (2) (A) of
22the Internal Revenue Code through the exchange under sub. (1), either separately
23or in conjunction with a qualified health plan, if the plan provides pediatric dental
24benefits meeting the requirements of section 1302 (b) (1) (J) of the federal act.
1(3) Neither the authority nor a health carrier offering health benefit plans
2through the exchange under sub. (1) may charge an individual a fee or penalty for
3termination of coverage if the individual enrolls in another type of minimum
4essential coverage because the individual has become newly eligible for that
5coverage or because the individual's employer-sponsored coverage has become
6affordable under the standards of section 36B (c) (2) (C) of the Internal Revenue
AB445,26,12 8(4) The authority may enter into information-sharing agreements with federal
9and state agencies and entities operating exchanges in other states to carry out its
10responsibilities under this chapter, provided that such agreements include adequate
11protections with respect to the confidentiality of the information to be shared and
12comply with all state and federal laws and rules and regulations.
AB445,26,15 13636.30 Exchange duties and powers. (1) In addition to all other duties
14imposed under this chapter, the authority shall do all of the following relating to the
15exchange under s. 636.25 (1):
AB445,26,1916 (a) Implement procedures for the certification, recertification, and
17decertification, consistent with guidelines developed by the secretary under section
181311 (c) of the federal act and s. 636.42, of health benefit plans as qualified health
AB445,26,2120 (b) Provide for the operation of a toll-free telephone hotline to respond to
21requests for assistance.
AB445,26,2322 (c) Provide for enrollment periods, as provided under section 1311 (c) (6) of the
23federal act.
1(d) Maintain an Internet site through which enrollees and prospective
2enrollees of qualified health plans may obtain standardized comparative
3information on such plans.
AB445,27,84 (e) Assign a rating to each qualified health plan offered through the exchange
5in accordance with the criteria developed by the secretary under section 1311 (c) (3)
6of the federal act, and determine each qualified health plan's level of coverage in
7accordance with regulations issued by the secretary under section 1302 (d) (2) (A) of
8the federal act.
AB445,27,119 (f) Use a standardized format for presenting health benefit options in the
10exchange, including the use of the uniform outline of coverage established under 42
11USC 300gg-15
AB445,27,1312 (g) Establish quality improvement standards for health benefit plans offered
13through the exchange.
AB445,27,1514 (h) Establish a system for enrolling eligible groups and individuals, using a
15standard application form developed by the commissioner under s. 636.46 (2).
AB445,27,1716 (i) Establish procedures for collecting premiums and remitting premium
17payments and providing enrollment information to health carriers.
AB445,27,2018 (j) Establish, in consultation with the commissioner, the method for
19determining the amount of the surcharge under s. 636.45 (1) and establish the
20procedure for imposing and collecting the surcharge.
AB445,27,2221 (k) Establish a plan for publicizing the exchange and the eligibility
22requirements and enrollment procedures.
AB445,27,2423 (L) Establish and operate a service center to provide information to small
24employers, individuals, enrollees, and insurance intermediaries about the exchange.
1(m) Establish a mechanism for regular communication and cooperation with
2insurance intermediaries.
AB445,28,43 (n) Establish an independent and binding appeals process for resolving
4disputes over eligibility and other determinations made by the authority.
AB445,28,95 (o) In accordance with section 1413 of the federal act, inform individuals of
6eligibility requirements for Medical Assistance under subch. IV of ch. 49 or any other
7applicable state or local public program and if, through screening of the application
8by the authority, the authority determines that any individual is eligible for any such
9program, assist that individual to enroll in that program.
AB445,28,1310 (p) Establish and make available by electronic means a calculator to determine
11the actual cost of coverage after application of any premium tax credit under section
1236B of the Internal Revenue Code and any cost-sharing reduction under section
131402 of the federal act.
AB445,28,1714 (q) Establish a SHOP Exchange through which qualified employers may access
15health care coverage for their employees and that shall enable any qualified
16employer to specify the level of coverage at which its employees may enroll in any
17qualified health plan offered through the SHOP Exchange.
AB445,28,2018 (r) Perform duties required of the authority by the secretary or the federal
19secretary of the treasury related to determining eligibility for premium tax credits,
20reduced cost sharing, or individual responsibility requirement exemptions.
AB445,28,2421 (s) Select entities, which may include insurance intermediaries, that are
22qualified to serve as navigators in accordance with section 1311 (i) of the federal act
23and standards developed by the secretary, and award grants to enable navigators to
24do all of the following:
11. Conduct public education activities to raise awareness of the availability of
2qualified health plans.
AB445,29,63 2. Distribute fair and impartial information concerning enrollment in qualified
4health plans and concerning the availability of premium tax credits under section
536B of the Internal Revenue Code and cost-sharing reductions under section 1402
6of the federal act.
AB445,29,77 3. Facilitate enrollment in qualified health plans.
AB445,29,128 4. Provide referrals to any applicable office of health insurance consumer
9assistance or health insurance ombudsman established under 42 USC 300gg-93, or
10to any other appropriate state agency or agencies, for any enrollee with a grievance,
11complaint, or question regarding the enrollee's health benefit plan, coverage, or
12determination under that plan or coverage.
AB445,29,1413 5. Provide information in a manner that is culturally and linguistically
14appropriate to the needs of the population being served by the exchange.
AB445,29,1715 (t) Assist in the coordination of any necessary administrative operations
16between the department of corrections and the department of health services to
17ensure all of the following: