Wisconsinites receiving public health care assistance through BadgerCare Plus would no longer be automatically reenrolled in the system and would have to renew their status with the state every six months under a Republican-authored bill in the Legislature.
The proposal, Assembly Bill 148, largely mirrors legislation passed last session by the Republican-controlled state Assembly and Senate. The bill was ultimately vetoed last April by Democratic Gov. Tony Evers.
Proponents of the bill say the changes aim to reduce the number of ineligible individuals receiving public benefits and reduce state spending. More than 1.6 million Wisconsinites are enrolled in BadgerCare or Medicaid programs, which are provided to low-income, pregnant, disabled and elderly individuals, according to state data.
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“I’m all for helping people that need help, but unfortunately our safety net has become a hammock over the years,” Rep. Donna Rozar, vice chair of the Assembly Committee on Health, Aging and Long-term Care, said at a public hearing Wednesday.
The committee could vote on the proposal as early as Wednesday.
The bill would bar the Department of Health Services from automatically renewing eligibility for BadgerCare recipients. DHS would also have to determine an individual’s eligibility every six months and would be prohibited from filling out eligibility forms for recipients in advance.
In addition, any BadgerCare recipient who fails to timely report to DHS any changes that may affect their eligibility would become ineligible for benefits for six months.
Earlier bill
Evers vetoed a similar bill in April 2022, writing in a veto message at the time that “individuals who otherwise meet existing eligibility criteria are entitled to these program benefits under federal law.”
For the 2022 bill, DHS said the proposed BadgerCare eligibility changes could jeopardize up to $7 billion in federal funding for administering Medicaid. DHS officials said in written testimony provided to the committee that a fiscal estimate for the current bill was not available for Wednesday’s meeting.
“The provisions of AB 148 are out of compliance with current federal regulations and would jeopardize Wisconsin’s ability to draw down both regular and enhanced federal funds for the Medicaid program,” DHS Legislative Director HJ Waukau wrote in the testimony.
Waukau also notes that, under the bill, the agency’s workload for determining Medicaid eligibility would double, necessitating the need for additional employees.
“Further, the administrative burden of the renewals would be much more time intensive without the use of pre-printed renewal forms,” Waukau added. “Such efforts would be further complicated by the unwinding of the public health emergency with current members already having their eligibility status redetermined. AB 148 does not provide any funding for DHS for these purposes and DHS would be unable to absorb these costs under its existing budget
Supporters of the bill say the amount of funding recovered from improper BadgerCare payments would more than make up for any expense.
“By requiring periodic eligibility determinations and data-sharing agreements, we can better monitor program usage and make sure that taxpayer dollars are being used efficiently,” Rep. Gae Magnafici, R-Dresser, said in a Thursday statement. “It’s time to put an end to the abuse of our government assistance programs and help those who truly need it.”
The Centers for Medicare and Medicaid Services reports that roughly $85 billion in improper Medicaid payments are made annually nationwide. Nearly 87% of those payments were the result of insufficient documentation, as opposed to fraud or abuse.
‘Missed opportunity’
Mike Browne, deputy director of the liberal group A Better Wisconsin Together, described the bill as “yet another missed opportunity by these right-wing Republican state legislators.”
“When they could be working with Gov. Evers and Democrats to expand health care, family and medical leave and create family-supporting jobs, they’re instead focusing on taking health insurance and unemployment benefits away from people who need it,” Browne said in a statement.
A dozen groups, including the Wisconsin Counties Association, Wisconsin Council of Churches, Disability Rights Wisconsin and American Diabetes Association, have registered in opposition to the bill. Two groups, Wisconsin Independent Businesses, Inc., and Wisconsin Manufacturers and Commerce, support the measure.
The bill was proposed after more than 78% of Wisconsin voters approved a nonbinding question on the April 4 ballot asking voters: “Shall able-bodied childless adults be required to look for work in order to receive taxpayer-funded welfare benefits?”
The proposed bill also comes as COVID-19 federal health emergencies are scheduled to end May 11, meaning people no longer eligible for Medicaid around the country will lose coverage over the coming year.
Wisconsin has seen BadgerCare enrollment increase 49% since March 2020, with 1.2 million residents now in the state’s main Medicaid program. An estimated 309,000 people are expected to lose coverage by June 2024, according to a report in December from the Urban Institute and the Robert Wood Johnson Foundation.
Most of those people now have incomes that exceed 100% of the federal poverty level or 300% for pregnant women and children, the state Medicaid cutoffs that depend on family size. Or they now have access to employer insurance.
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