Ringing in the new year: Administrative and legislative changes effective Jan. 1

This article is published courtesy of the December 2009 State Bar Forum For Justice newsletter, published by the Public Interest Law Section. 

New Year's Eve has always been a time for looking back to the successes and progress of the past year and starting a new chapter. Maybe you are one of the millions of people who commit to a resolution for the coming year. If health, family, and good fortune are among your wishes, then take a look at some administrative and legislative changes going into effect Jan. 1, 2010. Below is just a sampling. The February PILS newsletter will highlight a few more enhancements and advancements. Here’s to a prosperous 2010.

Health

State to Expand Health Coverage for Young Adults. In June 2009, Wisconsin passed a new law requiring health insurance policies to cover eligible young adults up to age 27. The law applies to individual health and group health benefit plans and a self-insured plan of the state, or a county, city, village, town or school district, including limited scope plans, such as vision and dental plans. However, the law does not apply to non-state regulated, self-funded coverage plans, which officials say make up roughly 40 percent of Wisconsin’s insurance. The statute goes into effect for health insurance policies issued or renewed beginning on Jan. 1, 2010. To be eligible for this coverage, young adults must be:

• Over 17 but less than 27 years of age,

• Not married, and

• Either not eligible for health coverage through the young adult's employer or whose premium contribution for employer coverage is greater than the additional premium amount the parent is required to pay to add the young adult to the parent’s health plan.

Additional eligibility rules apply to young adults who are called to federal active duty in the National Guard or reserves while a fulltime student. Gov. Jim Doyle announced an emergency rule from the Office of the Commissioner of Insurance (OCI) implementing and clarifying the new law. The rule clarifies, mainly, the calculation for eligibility based on premium costs; and eligibility for military personnel, students, non-resident young adults with resident parents, and young adults previously dropped from coverage because of their age.

Mental Health Parity. The Wellstone-Domenici Parity Act, which became law on Oct. 3, 2008, requires that any group health plan that covers more than 50 employees and offers mental health and/or substance use disorders coverage must provide that coverage with no greater financial requirements (i.e., co-pays, deductibles, annual or life-time dollar limits) or treatment limitations (i.e., number of visits) than the predominant requirements that it applies to substantially all medical/surgical benefits. The law goes into effect on Jan. 1, 2010.

Keep an eye on local progress: Wisconsin legislators are proposing a new state law that would end such disparities by requiring group health plans to provide coverage for treatment of mental illnesses and substance abuse disorders comparable to what plans provide for other conditions. The Wisconsin Mental Health and Alcohol Addictions Parity Act, a bill introduced last month by Sen. Dave Hansen, D-Green Bay, and Rep. Sandy Pasch, D-Whitefish Bay, would expand coverage to Wisconsin residents employed by firms with 50 or fewer workers. 

Family

Domestic Partners – Retirement and Insurance Benefits Available. Effective Jan. 1, 2010, all benefit programs administered by the Department of Employee Trust Funds, including employees of the University of Wisconsin System, will be available to qualifying domestic partners of state employees, and domestic partners of employees of participating local government employers. In order to qualify, domestic partners must meet the conditions for a domestic partnership listed in Chapter 40 of Wisconsin law and submit an Affidavit of Domestic Partnership (ET-2371) to ETF. Read much more detail on the 2009 Wisconsin Act 28 in Howard A. Sweet’s article “Understanding Domestic Partnerships in Wisconsin,” Wisconsin Lawyer, Vol. 82, No. 11, November 2009.

The article lists many of the statutes the Act affects, identifies some of the many provisions governing the relationship between spouses that the Act does not directly affect, and addresses several situations in which couples can benefit from advance planning.

Good Fortune

Wisconsin IOLTA Program Changes: Information for Financial Institutions. The Wisconsin Supreme Court has issued an order amending the trust account rule pertaining to IOLTA accounts (SCR 20:1.15) effective Jan. 1, 2010. IOLTA accounts will now earn the same interest or dividend rates generally available to similarly-situated non-IOLTA customers at the same financial institution. Note: Only a limited number of higher balance IOLTA accounts will be affected. Most IOLTA accounts will remain unchanged. In the coming months, the Wisconsin Trust Account Foundation, Inc. (WisTAF) will work with financial institutions to make implementation of the new rule as simple and efficient as possible. 

This article is published courtesy of the December 2009 edition of Forum For Justice newsletter, published by the State Bar Public Interest Law Section. The State Bar offers its members the opportunity to network with other lawyers who share a common interest through its 26 sections. Section membership includes access to newsletters, email lists to facilitate information sharing, and other resources.

• Related: Five things lawyers need to know about trust account rule changes in effect on Jan. 1