SB 273

Badger Health Benefit Authority

This bill creates the Badger Health Benefit Authority (authority) that is a

public body corporate and politic that is created by state law but that is not a state

agency. The authority is governed by a board of directors consisting of the

commissioner of insurance (commissioner), the secretary of employee trust funds,

the director of the state Medical Assistance program, the executive director of the

Health Insurance Risk-Sharing Plan Authority, and the following members who are

nominated by the governor, and with the advice and consent of the senate appointed,

for three-year terms: a member in good-standing of the American Academy of

Actuaries, a health economist, an employee benefits specialist, a representative of

small employers, a representative of an organization that represents consumer

interests, a representative of organized labor, and an individual with experience in

health care administration. The chairperson of the board is the commissioner. The

board must appoint an executive director of the authority. The executive director

must, among other duties, supervise the administrative affairs and general

management and operation of the authority, employ professional and clerical staff,

as necessary, and prepare the authority's annual budget.

The authority is not a state agency, so numerous laws that apply to state

agencies do not apply to the authority. However, the authority is treated like a state

agency in the following ways, among others: it is subject to auditing by the

Legislative Audit Bureau; it is subject to open meeting and open records laws; and

it is exempt from property tax, income tax, and sales and uses taxes. The authority

has powers, including adopting bylaws and policies and procedures for the

regulation of its affairs and conduct of its business; hiring employees; incurring debt;

suing and being sued in its own name; and executing contracts. The bill establishes

a process that the authority must use when it contracts for professional services.

Under the bill, the authority is subject to civil liability for its acts or omissions except

that the maximum amount recoverable in a civil action against the authority is

$100,000. However, a member of the authority's board of directors, the authority's

executive director, or an authority employee is exempt from civil liability unless the

member, director, or employee acted with willful misconduct or in intentional

violation of the law. The bill also imposes restrictions on board members and the

authority's executive director pertaining to conflicts of interest and requires board

members and the executive director to file financial disclosures.

Health benefit exchange

Under the bill, the authority must establish and operate a Wisconsin Health

Benefit Exchange in this state, must make qualified health plans, with effective

dates on or before January 1, 2014, available to qualified individuals and qualified

employers, and must seek federal grants and other funding for the purpose of the

exchange. A qualified health plan is defined in the bill, generally, as a health benefit