The federal law does not preempt state law, and both laws may apply to a policy. In cases where the federal and state laws differ, it is the opinion of the Office of the Commissioner of Insurance that the law most favorable to the insured is the one that applies. In 1986, the federal government enacted a law that gives many persons who would otherwise lose their group health coverage the right to continue coverage under the group plan. Under the federal law, employes who terminate employment for any reason other than gross misconduct, those whose hours are reduced, and dependents of these employes may continue the group coverage for up to 18 months. Disabled employes can continue coverage for up to 29 months.
State law runs concurrent with federal law in cases where both laws apply.
There are differences between the two laws, and persons may have to comply with both. The Wisconsin law applies to insured group plans that provide hospital or medical expenses. In the case of divorce or annulment, the law applies to individual policies that offer the same type coverage. The law does not apply to policies that cover only specified diseases or accidental injuries. Gives spouses who would otherwise lose their coverage because of divorce or annulment the right to continue coverage under the group policy or convert to an individual policy providing similar benefits.