Amendment ASA1-AB232

AB232-ASA1,4,6 20.435 (4) (bm) Medical Assistance, food stamps, and Badger Care administration; contract costs, insurer reports, and resource centers. Biennially, the amounts in the schedule to provide a portion of the state share of administrative contract costs for the Medical Assistance program under subch. IV of ch. 49 and the Badger Care health care program under s. 49.665 and to provide the state share of administrative costs for the food stamp program under s. 49.79, other than payments under s. 49.78 (8), for reward payments under s. 49.846 (2) and (3), to develop and implement a registry of recipient immunizations, to reimburse 3rd parties for their costs under s. 49.475, for costs associated with outreach activities, for state administration of state supplemental grants to supplemental security income recipients under s. 49.77, to administer the pharmacy benefits purchasing pool under s. 146.45, and for services of resource centers under s. 46.283. No state positions may be funded in the department of health services from this appropriation, except positions for the performance of duties under a contract in effect before January 1, 1987, related to the administration of the Medical Assistance program between the subunit of the department primarily responsible for administering the Medical Assistance program and another subunit of the department. Total administrative funding authorized for the program under s. 49.665 may not exceed 10% of the amounts budgeted under pars. (p) and (x).

AB232-ASA1,3 Section 3. 20.435 (4) (L) of the statutes is amended to read:

AB232-ASA1,4,17 20.435 (4) (L) Fraud and error reduction. All moneys received as the state's share of the recovery of overpayments and incorrect payments under ss. 49.497 (1) and (1m), 49.793 (2) (a), and 49.847, all moneys received from counties and tribal governing bodies as a result of any error reduction activities under ss. 49.197 and 49.845, and all moneys credited to this appropriation account under ss. 49.497 (2) (b), 49.793 (2) (b), and 49.847 (3) (b), for any contracts under s. 49.197 (5), for any activities to reduce error and fraud under s. 49.845, to pay federal sanctions under the food stamp program, for reward payments under 49.846 (2) and (3), and for food stamp reinvestment activities under reinvestment agreements with the federal department of agriculture that are designed to improve the food stamp program.

AB232-ASA1,4 Section 4. 20.435 (4) (nn) of the statutes is amended to read:

AB232-ASA1,4,24 20.435 (4) (nn) Federal aid; income maintenance. All moneys received from the federal government for the costs of contracting for the administration of the Medical Assistance program under subch. IV of ch. 49 and the Badger Care health care program under s. 49.665 and the food stamp program, other than moneys received under par. (pa), for costs to administer income maintenance programs, as defined in s. 49.78 (1) (b), and for reward payments under 49.846 (2) and (3).

AB232-ASA1,5 Section 5. 20.435 (4) (pa) of the statutes, as affected by 2013 Wisconsin Act 20, is amended to read:

AB232-ASA1,5,9 20.435 (4) (pa) Federal aid; Medical Assistance and food stamp contracts administration. All federal moneys received for the federal share of the cost of contracting for payment and services administration and reporting, other than moneys received under pars. (nn) and (np), to reimburse 3rd parties for their costs under s. 49.475, for administrative contract costs for the food stamp program under s. 49.79, for reward payments under s. 49.846 (2) and (3), and for services of resource centers under s. 46.283.

AB232-ASA1,6 Section 6. 49.793 (2) (a) of the statutes is amended to read:

AB232-ASA1,5,19 49.793 (2) (a) Except as provided in par. (b), a county, multicounty consortium, as defined in s. 49.78 (1) (br), or governing body of a federally recognized American Indian tribe may retain a portion of the full amount of an overpayment the state is authorized to retain under 7 USC 2025 that is recovered under sub. (1) due to the efforts of an employee or officer of the county, multicounty consortium, or tribe. The department shall promulgate a rule establishing the portion of the amount of the overpayment that the county, multicounty consortium, or governing body may retain. This paragraph does not apply to recovery of an overpayment that was made as a result of state, county, multicounty consortium, or tribal governing body error.

AB232-ASA1,7 Section 7. 49.846 of the statutes is created to read:

AB232-ASA1,5,23 49.846 Optional incentive program for counties and tribes that identify fraud in certain public assistance programs. (1) Definitions. In this section:

AB232-ASA1,5,25 (a) "County or tribe" means a county having a population of less than 750,000 or a federally recognized American Indian tribe or band in this state.

AB232-ASA1,6,1 (b) "Department" means the department of health services.

AB232-ASA1,6,3 (c) "Food stamp program" means the federal food stamp program under 7 USC 2011 to 2036a.

AB232-ASA1,6,4 (d) "Medical Assistance program" means the program under subch. IV.

AB232-ASA1,6,9 (2) Medical Assistance program. (a) The department shall establish an optional incentive program, by rule, under which the department will provide a reward payment to a county or tribe if an employee or officer of the county or tribe identifies fraudulent activity in the Medical Assistance program and the county or tribe does all of the following:

AB232-ASA1,6,11 1. Investigates the identified fraudulent activity and determines that fraud occurred.

AB232-ASA1,6,13 2. Establishes a claim for any overpaid benefits related to the identified fraudulent activity.

AB232-ASA1,6,15 3. Pursues criminal prosecution for the identified fraudulent activity if directed to do so by the department.

AB232-ASA1,6,17 (b) The department shall establish the optional incentive program to include all of the following:

AB232-ASA1,6,20 1. That, for identifying fraudulent activity, a county or tribe shall choose to receive a reward payment in the amount determined under subd. 2. or to retain funds under s. 49.49 (5) or 49.497 (2) (a).

AB232-ASA1,7,3 2. That the amount of a reward payment to a county or tribe under the program is equal to 20 percent of the amount that the department determines will be saved in the Medical Assistance program as the result of eliminating the identified fraudulent activity during the 12-month period after the fraudulent activity is eliminated. Notwithstanding ss. 49.49 (5) and 49.497 (2) (a), a county or tribe that receives a reward payment may not retain any funds that are incorrectly paid as the result of the identified fraudulent activity and recovered due to the efforts of an employee or officer of the county or tribe.

AB232-ASA1,7,6 (c) Nothing in par. (b) prohibits a county or tribe from retaining funds under s. 49.793 (2) (a) that are incorrectly paid as the result of a recipient's error rather than fraud.

AB232-ASA1,7,9 (d) The department may make reward payments under the optional incentive program established under this subsection from the appropriations under s. 20.435 (4) (b), (bm), (L), (nn), and (pa).

AB232-ASA1,7,14 (3) Food stamp program. (a) The department shall establish an optional incentive program, by rule, under which the department will provide a reward payment to a county or tribe if an employee or officer of the county or tribe identifies fraudulent activity in the food stamp program and the county or tribe does all of the following:

AB232-ASA1,7,16 1. Investigates the identified fraudulent activity and determines that fraud occurred.

AB232-ASA1,7,18 2. Establishes a claim for any overpaid benefits related to the identified fraudulent activity.

AB232-ASA1,7,20 3. Pursues criminal prosecution for the identified fraudulent activity if directed to do so by the department.

AB232-ASA1,7,22 (b) The department shall establish the optional incentive program to include all of the following:

AB232-ASA1,7,25 1. That, for identifying fraudulent activity, a county or tribe shall choose to receive a reward payment in the amount determined under subd. 2. or to retain funds under s. 49.793 (2) (a).

AB232-ASA1,8,7 2. That the amount of a reward payment to a county or tribe is equal to 20 percent of the amount that the department determines will be saved in the food stamp program as the result of eliminating the identified fraudulent activity during the 12-month period after the fraudulent activity is eliminated. Notwithstanding s. 49.793 (2) (a), a county or tribe that receives a reward payment may not retain any funds that are incorrectly paid as the result of the identified fraudulent activity and recovered due to the efforts of an employee or officer of the county or tribe.

AB232-ASA1,8,10 (c) Nothing in par. (b) prohibits a county or tribe from retaining funds under s. 49.793 (2) (a) that are incorrectly paid as the result of a recipient's error rather than fraud.

AB232-ASA1,8,13 (d) The department may make reward payments under the optional incentive program established under this subsection from the appropriations under s. 20.435 (4) (bm), (L), (nn), and (pa).

AB232-ASA1,8,15 (4) Use of reward payment. A county or tribe may use a reward payment received under this section for any purpose.

AB232-ASA1,8,21 (5) Waivers. (a) If the department determines that it needs a waiver to allow reward payments under sub. (2) to qualify as administrative costs for the Medical Assistance program or to allow a county and tribe to use any federal funds received under sub. (2) for any purpose, the department shall request the necessary waiver from the secretary of the federal department of health and human services and may not implement the incentive program under sub. (2) unless the waiver is granted.

AB232-ASA1,9,2 (b) If the department determines that it needs a waiver to allow reward payments under sub. (3) to qualify as administrative costs involved in the operation of the food stamp program or to allow a county and tribe to use any federal funds received under sub. (3) for any purpose, the department shall request the necessary waiver from the secretary of the federal department of agriculture and may not implement the incentive program under sub. (3) unless the waiver is granted.

AB232-ASA1,9,3 (End)