AB 445

This bill requires the establishment and operation of a Wisconsin Health

Benefit Exchange, which is administered by the Badger Health Benefit Authority

that is also created in the bill.

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, the secretary of employee trust funds, the director of the

state Medical Assistance program, the executive directors of the Wisconsin

Collaborative for Healthcare Quality and the Wisconsin Health Information

Organization, 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