Wisconsin Assembly Bill AB1216

Wisconsin 2025-2026 Regular Session

• Introduced: 3/19/26
• Refer: 3/19/26
• Failed: 3/23/26

Caption

An Act to amend 20.145 (1) (g) (intro.); to create 20.145 (1) (g) 4. and 601.59 of the statutes; Relating to: a state-based insurance exchange and making an appropriation. (FE)

Summary

AB1216 would direct the Wisconsin Office of the Commissioner of Insurance (OCI) to establish and operate a state-based health insurance exchange. Wisconsin currently uses the federally facilitated exchange, HealthCare.gov, for individual and small-group coverage enrollment under the Affordable Care Act. The bill sets a timeline for OCI to first operate a state-based exchange on the federal platform by no later than plan year 2029, and then transition to a fully state-run exchange without the federal platform by no later than plan year 2030. The bill also authorizes OCI to enter into agreements with the federal government as needed to implement the transition and requires OCI to impose user fees on insurers that sell plans through the exchange. Those fees would be 0.5 percent while the exchange uses the federal platform, then equal to the federal exchange fee for the first two years of a fully state-run exchange, and thereafter set by OCI rule. The bill creates a new statutory section governing the exchange and amends the state appropriation structure so that exchange-related revenues are credited to OCI’s general program operations account, with an appropriation for those funds.

Impact

AB1216 would change Wisconsin law by creating s. 601.59, establishing a state-run framework for the health insurance exchange, and amending s. 20.145 to accommodate exchange revenues and spending authority. In practical terms, it would shift Wisconsin from relying entirely on the federal ACA marketplace to building a state-administered exchange, first using federal technology and later operating independently. The bill would also create a new state revenue stream through insurer user fees and give OCI authority over fee-setting after the initial transition period.

Sentiment

The bill appears to reflect a policy preference for greater state control over ACA marketplace operations, with an emphasis on a phased transition rather than an immediate break from the federal platform. Because no committee transcript or recorded votes are provided, there is no documented floor or committee debate in the supplied materials. The bill ultimately failed to pass pursuant to Senate Joint Resolution 1, indicating it did not advance to enactment despite being formally introduced.

Contention

The main points of contention likely concern whether Wisconsin should leave the federally facilitated exchange model, the feasibility and cost of building a fully state-run exchange, and the effect of user fees on insurers and potentially premiums. Another likely issue is the transition timeline: the bill requires OCI to meet federal approval and operational milestones by 2029 and 2030, which could raise concerns about implementation risk, administrative burden, and consumer continuity. No specific opposing or supporting arguments are included in the provided record, so these concerns are inferred from the bill’s structure and policy choices rather than from recorded debate.