AB1016: Bill Text

AB1016,6,6 (6) Arbitration. (a) Enrollees. 1. Except as provided under subd. 2., an enrollee of a defined network plan or preferred provider plan shall be entitled to submit a dispute of a claim of a provider to arbitration if all of the following apply:

AB1016,6,8 a. The provider is not in the network of the enrollee's defined network plan or preferred provider plan.

AB1016,6,11 b. The provider is under contract to provide services at a health care facility that is in the network of the enrollee's defined network plan or preferred provider plan.

AB1016,6,13 c. The enrollee is responsible for an amount, after copayments, deductibles, and coinsurance, that exceeds $500.

AB1016,6,16 2. The enrollee is not entitled to request arbitration if the amount that the enrollee is responsible for, after copayments, deductibles, and coinsurance, is less than the good faith estimate provided under sub. (3) (a) 2.

AB1016,6,19 3. The defined network plan or preferred provider plan shall include in an explanation of benefits statement provided to an enrollee a notice that the enrollee may be entitled to request arbitration as provided under this subsection.

AB1016,6,22 (b) Plans and providers. If there is a dispute over a payment under sub. (4) (a) 2. or (b) 1. or (5) (b), the plan or provider may submit the dispute for arbitration, except that a dispute involving any of the following may not be submitted:

AB1016,6,24 1. Services for which provider fees are subject by law to schedules or other monetary limitations.

AB1016,7,9 2. Emergency services billed under American Medical Association Current Procedural Terminology codes 99217 to 99220, 99224 to 99226, 99234 to 99236, 99281 to 99285, 99288, and 99291 to 99292 if the amount billed for a specific code does not exceed 120 percent of the usual and customary cost for the code and does not exceed the exemption amount. The exemption amount shall be $600 in 2020 and shall be adjusted annually by the commissioner to reflect changes in the consumer price index for all urban consumers, U.S. city average, for the medical care group, as determined by the U.S. department of labor, for the 12 months ending on December 31 of the preceding year, except that the exemption amount may not exceed $1,200.

AB1016,7,19 (c) Establishment. The commissioner shall establish an arbitration process to resolve disputes that are submitted under par. (a) or (b). The commissioner shall certify at least one independent dispute resolution entity to conduct the arbitration process. In order to obtain and maintain certification, an independent dispute resolution entity shall use licensed providers who are in active practice in the same or similar specialty as the provider providing the service subject to dispute and who, to the extent practicable, are licensed in this state. The commissioner shall, by rule, establish a process for submitting a dispute for arbitration and standards for the arbitration process, including a process for certifying an independent dispute resolution entity and revoking the certification when appropriate.

AB1016,7,25 (d) Arbitration process. When a party submits a dispute for arbitration under par. (a) or (b), the independent dispute resolution entity shall determine the amount of a reasonable fee for the services provided by the provider to the enrollee according to the conditions of this paragraph. The independent dispute resolution entity shall provide the determination, in writing, to the parties and the commissioner no later than 30 days after the dispute is submitted to the entity.

AB1016,8,6 1. For a dispute submitted under par. (a), the independent dispute resolution entity shall determine if the fee charged by the provider to the enrollee is reasonable based on the factors in par. (e). If the entity determines the fee is reasonable, the entity shall select that amount as its determination. If the entity determines the fee is not reasonable, the entity shall determine a reasonable fee based on the factors in par. (e).

AB1016,8,14 2. For a dispute submitted under par. (b), the plan and provider shall each submit an amount to the independent dispute resolution entity, and the entity shall select one of the amounts based on the factors in par. (e); except that, if the entity determines that the amounts submitted by the parties are unreasonable or that a settlement between the parties is reasonably likely, the entity may direct the parties to attempt a good faith negotiation for settlement. If the plan and provider agree to an amount, the independent dispute resolution entity shall select that amount as its determination.

AB1016,8,16 (e) Reasonable fee criteria. The independent dispute resolution entity shall consider all of the following factors when determining a reasonable fee under par. (d):

AB1016,8,18 1. The provider's usual charge for comparable services rendered to patients covered by plans for which the provider is not in network.

AB1016,8,23 2. Whether there is a gross disparity between the fee billed by the provider as compared to fees paid to that provider for the same services rendered to other patients covered by plans for which the provider is not in network and, in the case of a dispute submitted under par. (b), fees paid by the plan to reimburse similarly qualified providers who are not in the plan's network.

AB1016,8,24 3. The level of training, education, and experience of the provider.

AB1016,9,2 4. The circumstances and complexity of the particular case, including time and place of the service.

AB1016,9,3 5. Individual characteristics of the enrollee.

AB1016,9,4 6. The usual and customary cost of the service.

AB1016,9,5 7. Any factors identified by the commissioner by rule.

AB1016,9,7 8. Any factors the entity determines are relevant based on the specific facts and circumstances of the dispute.

AB1016,9,11 (f) Binding effect. The determination of the independent dispute resolution entity shall be binding on the parties to the dispute and shall be admissible in a court proceeding between them and in any administrative proceeding between this state and the provider.

AB1016,9,21 (g) Costs. 1. For disputes submitted under par. (a), the costs for the arbitration process shall be paid by the enrollee if the independent dispute resolution entity determines that the fee charged by the provider to the enrollee is reasonable and by the provider if the entity determines that the fee is not reasonable; except that the costs charged to an enrollee may not exceed $100. The commissioner may waive or reduce the costs charged to the enrollee if requiring full payment would impose a hardship on the enrollee. The commissioner shall, by rule, specify the factors to be considered in making the determination of hardship and determine and establish a mechanism to cover the amount of arbitration costs that are otherwise unpaid by enrollees under this subdivision.

AB1016,9,24 2. For disputes submitted under par. (b), the costs for the arbitration process shall be paid by the party whose amount is not selected by the independent dispute resolution entity or, if a settlement is reached, by both parties in equal amounts.

AB1016,10,2 (7) Conflicts. To the extent that this section conflicts with s. 609.10, 609.91, or 609.92, this section supersedes ss. 609.10, 609.91, and 609.92.

AB1016,2 Section 2 . Initial applicability.

AB1016,10,6 (1) (a) For plans or contracts containing provisions inconsistent with this act, the act first applies to plan or contract years beginning on January 1 of the 2nd year following the year in which this paragraph takes effect, except as provided in par. (b).

AB1016,10,11 (b) For plans or contracts that are affected by a collective bargaining agreement containing provisions inconsistent with this act, this act first applies to plan or contract years beginning on the effective date of this paragraph or on the day on which the collective bargaining agreement is newly established, extended, modified, or renewed, whichever is later.

AB1016,3 Section 3 . Effective date.

AB1016,10,14 (1) This act takes effect on first day of the 7th month beginning after publication.

AB1016,10,15 (End)