LRB-1352/1
TJD:skw
2021 - 2022 LEGISLATURE
March 25, 2021 - Introduced by Representatives Neylon, Sanfelippo, Allen,
Armstrong, Brandtjen, Brooks, Cabral-Guevara, Dittrich, Edming,
Gundrum, James, Kerkman, Kitchens, Knodl, Macco, Magnafici, Moses,
Novak, Petryk, Ramthun, J. Rodriguez, Rozar, Schraa, Skowronski,
Sortwell, Summerfield, Tauchen, Thiesfeldt, Tittl, Tranel, Tusler,
VanderMeer and Wichgers, cosponsored by Senators Kooyenga, Ballweg,
Stroebel, Bernier and Wanggaard. Referred to Committee on Insurance.
AB212,1,3
1An Act to repeal 632.7495 (4) (a) to (d);
to renumber and amend 632.7495 (4)
2(intro.); and
to amend 632.7495 (5) of the statutes;
relating to: short-term
3health coverage duration.
Analysis by the Legislative Reference Bureau
Under current law, an insurer is not required to renew short-term health
coverage, which is coverage that is marketed and designed to provide short-term
coverage as a bridge between health coverage with an initial term of not more than
12 months and an aggregate term of all consecutive periods of coverage not exceeding
18 months. The federal regulation defining this short-term, limited-duration
insurance, effective on August 3, 2018, has the same initial term but specifies an
aggregate duration, including renewals or extensions, of no longer than 36 months.
This federal regulation allows states to set a shorter maximum aggregate duration,
as Wisconsin law had done before the regulation was effective.
This bill replicates the definition of short-term, limited-duration coverage in
the 2018 federal regulation. Specifically, the bill extends the cumulative duration
to no longer than 36 months, including all renewals and extensions. Under the bill,
the initial expiration date specified in the contract for short-term, limited-duration
coverage must be less than 12 months after the contract's effective date, which
retains Wisconsin's requirement for the initial contract term. Current state law
allows the commissioner of insurance to promulgate rules relating to the sale of these
short-term, limited duration health plans, and the bill retains this authorization
except for rules that set a different initial or aggregate duration of short-term,
limited-duration coverage.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB212,1
1Section
1. 632.7495 (4) (intro.) of the statutes is renumbered 632.7495 (4) and
2amended to read:
AB212,2,93
632.7495
(4) Except as the commissioner may provide by rule under sub. (5)
4and notwithstanding subs. (1) and (2) and s. 631.36 (4), an insurer is not required to
5renew individual health benefit plan coverage that
complies with all of the following: 6is short-term, limited duration insurance that has an expiration date specified in the
7contract that is less than 12 months after the original effective date of the contract
8and, taking into account renewals or extensions, has a duration of no longer than 36
9months in total.
AB212,2
10Section
2. 632.7495 (4) (a) to (d) of the statutes are repealed.
AB212,3
11Section
3. 632.7495 (5) of the statutes is amended to read:
AB212,2,1612
632.7495
(5) The commissioner shall promulgate rules governing disclosures
13related to, and may promulgate rules setting standards for, the sale of individual
14health benefit plans that an insurer is not required to renew under sub. (4)
, except
15that the commissioner may not set a different initial or aggregate duration than is
16specified in sub. (4).
