Bill would let century-old farm cooperatives offer member health benefits outside insurance law

MADISON, Wis. — On Sept. 29, 2025, Senators Howard Mark Feyen and Roger L. Tomczyk introduced Senate Bill 450, a measure that would allow certain nonprofit agricultural organizations to offer health benefit coverage to their members and members'families while exempting both the coverage and the offering organization from Wisconsin insurance law. The bill was referred to the Committee on Insurance, Housing, Rural Issues and Forestry.

Under the bill text, a "nonprofit agricultural organization" must be a member-directed organization described in Internal Revenue Code section 501(c)(5) and exempt under section 501(a); be organized as a cooperative in Wisconsin under chapter 185; have been established before Jan. 1, 1922; collect annual dues; be governed by a member-elected board of directors; and have a wholly owned subsidiary through which coverage may be administered. The bill creates s.146.76 of the statutes and adds an exemption in s.600.01(1)(b)14.

If an organization elects to offer coverage, the bill imposes several conditions. An organization must offer coverage to members in every county in the state. Prior to enrollment, members must receive and sign written notice that the coverage "is not health insurance" and that the coverage alone "may not satisfy individual or employer insurance coverage requirements under federal law." The organization must reinsure its risks with a company authorized to transact reinsurance in Wisconsin and must, no later than one year after its initial attestation and annually thereafter, file with the commissioner of insurance a signed opinion from a qualified actuary attesting that the organization's financial reserves and those of any affiliated entities are sufficient and conform to appropriate actuarial standards.

The bill also includes consumer-protection limits. An organization may not exclude or refuse to provide coverage for services provided by a health care provider if the coverage would cover those services when provided by a physician licensed under subch. II of ch. 448. The bill caps any preexisting-condition exclusion at six months for conditions that would otherwise be covered. It requires organizations offering coverage to adopt a member complaint-and-resolution process that is, "to the greatest extent practicable," consistent with the process used by the Office of the Commissioner of Insurance for health insurance consumers.

Senate Bill 450 does not include an enacted fiscal note or committee report in the text provided; the measure, as introduced, is procedural at this stage and awaits review in the referred committee. The bill text is limited to the statutory framework for eligibility, operational requirements, and consumer notices; it does not itself appropriate funds or create a state-administered program.

If the committee holds hearings or produces amendments, those actions and any votes would be recorded by the Legislature and reported separately.