Bill > SB98

This bill provides a mechanism for health care cooperatives (member-owned organizations that establish nonprofit health care plans) to convert into service insurance corporations (state-incorporated entities that provide insured health care benefits). Under the proposed legislation, a health care cooperative seeking to convert must follow a specific process: develop a detailed conversion plan, obtain approval from the insurance commissioner, and secure member agreement to the conversion. The insurance commissioner must approve the conversion plan unless it is found to be legally problematic, financially unsound, or contrary to the interests of the cooperative's members or the public. If approved, the conversion results in the cooperative's legal existence being terminated and all of its assets and obligations being transferred to the new service insurance corporation. The bill essentially provides a structured pathway for health care cooperatives to restructure their organizational form while maintaining their core mission of providing health care benefits, with oversight from regulatory authorities to ensure the conversion serves the interests of members and the broader public.

Agriculture and Natural Resources

https://docs.legis.wisconsin.gov/2025/proposals/reg/sen/bill/sb98