2. Under current law, DHSS is permitted to distribute supplemental payments
to nursing homes to cover the costs of caring for emotionally disturbed residents.
This bill eliminates supplemental payments for emotionally disturbed residents
effective July 1, 1997.
3. This bill requires DHSS to use interest and investment income of a nursing
home and affiliated entities, to the extent required under the state's approved
medical assistance plan, to offset allowable interest expenses in determining the
nursing home's reimbursement rate. It also requires, as a condition of receiving
reimbursement under the medical assistance program, that nursing homes provide
information to DHSS, upon request, that DHSS considers necessary to determine
allowable interest expenses of the nursing home and of affiliated entities.
4. Under current law, the "capital" component of a nursing home's
reimbursement rate is based on the replacement value of a nursing home facility, as
determined by a commercial estimator who is paid and contracted for by DHSS. This
provision is changed to require the nursing home to pay for a commercial estimator
contracted for by DHSS.
5. This bill permits an increase in total payments to nursing home facilities for
state fiscal year 1995-96 of no more than 4.25% over that paid for services in state
fiscal year 1994-95 and for state fiscal year 1996-97 of no more than 5% over that
paid for services in state fiscal year 1995-96.
Under current law, DHSS may reimburse the 3 state centers for the
developmentally disabled for the cost of services provided by the centers. This
reimbursement is made from state revenues under the medical assistance program
and from federal matching funds. The reimbursement is reduced by a specified
amount following each placement made under the community reintegration
program that involves a relocation from one of the state centers. Under current law,
the specified reduction amount for the central Wisconsin center for the
developmentally disabled is $55.77 per day; the amount for the northern Wisconsin
center for the developmentally disabled is $49.06 per day; and the amount from the

southern Wisconsin center for the developmentally disabled is $48.37 per day. This
bill changes these amounts, beginning in fiscal year 1995-96, to $232, $225 and
$173, respectively.
This bill permits DHSS to impose certain requirements on certain providers of
medical assistance services relating to the amount that the provider may claim from
DHSS as reimbursement for medical assistance services. DHSS may impose these
requirements with respect to all medical assistance services except certain hospital
services, skilled nursing facility and intermediate care facility services, and home
and community-based services. The bill allows DHSS to require that the providers
of these services charge DHSS the lesser of the provider's "best price" for the service
or the provider's actual cost for the service, unless a different price is determined by
a contract. The bill defines "best price" for a service to mean the lowest price that a
provider has accepted or agreed to accept as payment, from any 3rd-party payer,
including self-insured plans, the medicare program and insurers, for a like service
provided to a customer during the same month that the service is provided. If DHSS
requires that a provider charge a particular price for a service, DHSS may not
reimburse the provider for more than that amount.
This bill provides that medical assistance reimbursement for home health and
private-duty nursing services provided to a medical assistance recipient in a month
may not exceed the average monthly cost of nursing home care, as determined by
DHSS. The monthly limit does not apply to a medical assistance recipient under the
age of 22, to a ventilator-dependent individual or to any other individual if DHSS
determines that the cost of providing that individual with nursing home care would
exceed the cost of providing the individual with the home health and private-duty
nursing services.
This bill provides up to $4,500,000 in federal medical assistance moneys in each
fiscal year as a match to costs of a county department of social services or human
services that exceed medical assistance reimbursement for home health services,
medical day treatment services, mental health services and alcohol and other drug
abuse services. Under the bill, county departments that have operating deficits
resulting from these costs may apply to DHSS for federal matching funds. DHSS
must develop a method, using criteria specified in the bill, to distribute the federal
moneys to individual county departments of social services or human services.
Under current law, DHSS must annually submit to the joint committee on
finance (JCF) a report on nursing home bed use by medical assistance recipients for
the immediate prior 2 fiscal years. If the report indicates a decrease in the number
of beds used in the most recent fiscal year from the previous fiscal year, DHSS must
calculate the difference in costs between the 2 fiscal years for the provision of the
care. The DHSS report to JCF must include a proposal to transfer an amount equal
to the difference from the appropriation for medical assistance to the appropriation
for the community options program. If within 14 working days after submission of
the report JFC does not schedule a meeting to review the action, the secretary of
health and social services must transfer the funds.

This bill eliminates the requirements that DHSS annually submit a report to
JCF concerning medical assistance-funded bed utilization in nursing homes; that,
if the bed utilization has decreased, DHSS calculate a figure that is the difference
in costs for the provision of this care; and that, if JCF fails to schedule a meeting to
review the issue, funds be transferred from the medical assistance program to the
community options program.
This bill requires DHSS to conduct a study of the feasibility of contracting out
the operation of the medical assistance program. DHSS is required to report its
findings to the governor and to the appropriate standing committees of the
legislature before July 1, 1996.
Under current law, DHSS distributes certain supplemental funding under the
medical assistance program to county hospitals and county mental health
complexes, as determined by DHSS, for inpatient hospital services that are not in
excess of the hospitals' customary charges for the services, subject to certain
limitations under federal law. This bill allows DHSS to distribute this supplemental
funding to county hospitals and county mental health complexes for all hospital
services, not just inpatient services.
Other public assistance
Under current law, the state makes payments to certain individuals who meet
the resource limitations and the nonfinancial eligibility requirements of the federal
SSI program, including needy persons or couples residing in this state who receive
benefits under the federal SSI program or whose income, after deducting income
excludable under the federal SSI program, is less than the combined benefit level
available under the federal SSI program and the state supplement. This bill changes
these eligibility criteria. First, the bill eliminates eligibility for the state supplement
for those needy persons and couples whose income, after deducting income
excludable under the federal SSI program, is less than the combined benefit level
available under the federal SSI program and the state supplement. Second, the bill
allows DHSS to make certain needy persons or couples residing in this state who
receive benefits under the federal SSI program ineligible for the state supplement
if DHSS and the secretary of administration approve the change in eligibility and the
change is not disapproved by the JCF or the governor. This procedure for changing
eligibility criteria is virtually identical to the procedure under current law that
allows DHSS to adjust state supplement benefit levels.
Current law allows DHSS the option of administering the state supplement
directly or under a contract with the federal government. However, the
appropriation from which state supplement administrative expenses are paid
authorizes expenditures only for the payment of fees charged by the federal
government for administration of the state supplement. This bill allows moneys to
be expended from the appropriation to administer the state supplement, either
directly or under a contract with the federal government.
Under current law, DHSS supplements the provision of supplemental foods,
nutrition education and other services to individuals who meet the eligibility criteria

under the federal special supplemental food program for women, infants and
children (WIC). This bill eliminates the state supplement to the WIC program.
Under current law, DHSS may distribute funds to nonprofit organizations for
certain food stamp outreach projects. The projects must inform individuals with low
incomes about the availability, eligibility requirements, application procedures and
benefits of the food stamp program and must meet federal requirements to allow
federal reimbursement of 50% of the project costs. This bill repeals the provisions
that allow DHSS to distribute funds for these outreach projects.
Under current law, if a recipient of certain types of public assistance dies and
the recipient's estate is insufficient to pay the cemetery, funeral and burial expenses,
the county or the applicable tribal governing body, or other organization responsible
for the burial of the recipient, is required to pay certain cemetery, funeral and burial
expenses. In particular, the county or tribal governing body or organization is
required to pay all of the deceased recipient's cemetery expenses and the lesser of
$1,000 or the amount of funeral and burial expenses that are not paid by the deceased
recipient's estate or by other persons. Current law also requires DHSS to reimburse
the county or tribal governing body or organization for all cemetery expenses that it
pays and for those funeral and burial expenses that it is required to pay under the
provision. If DHSS approves the reimbursement due to unusual circumstances,
DHSS may reimburse a county or applicable tribal governing body or organization
for funeral and burial expenses that it pays for the deceased, even if these expenses
exceed the amount that the county or tribal governing body or organization is
required to pay under the provision.
Under this bill, the county or tribal governing body or organization is required
to pay the lesser of $1,000 or the amount of cemetery expenses that are not paid by
the estate of the deceased and other persons. For funeral and burial expenses, the
county or tribal governing body or organization is required to pay the lesser of the
amount of funeral and burial expenses that are not paid by the deceased recipient's
estate and other persons or the following: 1) if the total funeral and burial expenses
are $1,000 or less, the amount of these expenses; 2) if the total funeral and burial
expenses are more than $1,000 but not more than $2,000, 50% of the total funeral
and burial expenses; and 3) if the total funeral and burial expenses are more than
$2,000, $0. DHSS is required to reimburse a county or applicable tribal governing
body for any cemetery, funeral or burial expenses that it is required to pay under
these provisions and, if DHSS approves the reimbursement due to unusual
circumstances, for any additional expenses.
Under current law, counties and tribal governing bodies are authorized to
recover overpayments under the food stamp, AFDC and medical assistance
programs; they are also authorized to retain a percentage of the amount recovered.
Current law also authorizes DHSS to certify certain overpayments under these
programs to the department of revenue (DOR) for offset against any tax refunds due
the recipient of the overpayment. This bill allows DHSS to charge counties and tribal
governing bodies for the administrative costs that are incurred by DOR and that are
related to certification of these amounts. Recovered administrative costs may be

used by DHSS for reducing error and fraud in the food stamp, AFDC and medical
assistance programs.
Under current law, overpayments under the food stamp, AFDC and medical
assistance programs are often recovered under a recovery plan. This bill authorizes
a county or tribal governing body to assess persons who fail to comply with the terms
of a recovery plan a fee in an amount not to exceed 10% of the amount remaining to
be recovered at the time of the noncompliance. The fee may not be assessed more
than once with respect to the same overpayment and may be assessed only if a person
is no longer eligible for the type of benefits, such as food stamps, AFDC or medical
assistance, that were overpaid. The fee may be retained by the county or the tribal
governing body.
Under current law, DHSS may contract with a county to administer a work
experience and job training program for noncustodial parents who fail to pay child
support or to meet their children's needs for support as a result of unemployment or
underemployment. This program is commonly referred to as the "children-first
program". A judge may order, in certain child support actions, a noncustodial parent
to participate in the children-first program if the noncustodial parent lives in the
county in which the court action occurs and that county has a children-first program.
This bill permits a judge to order a noncustodial parent to participate in a
children-first program regardless of whether the noncustodial parent resides in the
county in which the court action occurs. However, if the parent resides in a county
other than the county in which the court action occurs, the judge may order the
parent to participate in a children-first program only if the parent's county of
residence has a children-first program and that county agrees to enroll the parent
in that program.
Under current law, DHSS, a county or an elected tribal governing body that
provides certain types of public assistance as the result of an injury, sickness or death
that results in a possible recovery of an indemnity from a 3rd party, including an
insurer, may require an assignment of the right to the indemnity from the public
assistance recipient. Under this bill, this assignment is automatic upon the
application for public assistance.
Current law provides for subrogation of certain claims against a 3rd party by
a public assistance recipient, if the public assistance is provided as a result of the
occurrence of an injury, sickness or death that creates a claim or cause of action
against the 3rd party. This bill establishes certain notice requirements for claims
assigned or subrogated under these provisions. The notice requirements generally
apply to the attorney retained to represent the public assistance recipient, or his or
her estate, in asserting the claim. If no attorney is retained, the notice requirements
apply to the public assistance recipient or his or her guardian or, if the recipient is
deceased, to the personal representative of the recipient's estate. A person who is
subject to the notice requirements is required to provide notice by certified mail to
DHSS as soon as practicable after the filing of the action asserting the claim; the
intervention in, or consolidation of, the action; or the settlement of all or part of the
claim.

Current law provides that the provision of medical benefits under the general
relief program or the RNIP program or under medical assistance constitutes an
assignment to DHSS, or to a county providing medical assistance or benefits, to the
extent of the medical benefits or assistance provided and for benefits to which the
recipient would be entitled under any policy of health and disability insurance. A
similar provision assigns rights under uninsured health plans, for example,
self-insured employer health plans, although this provision covers only medical
assistance. Separate provisions also prohibit the imposition of requirements on
DHSS, as an assignee, that are different from those imposed on any other agent or
assignee of a person covered under the health and disability insurance policy or
under the uninsured health plan.
This bill makes several changes to these provisions. The bill amends the
provision covering assignments by uninsured health plans to cover medical benefits
under the general relief and RNIP programs, or, after January 1, 1996, the
emergency medical relief program, as well as medical assistance. Under current law,
only the provision regarding assignment of rights under health and disability
policies applies to counties providing medical assistance or benefits, as well as to
DHSS. Under this bill, all of the provisions require assignment not only to DHSS,
but also to counties providing medical assistance or benefits and to health
maintenance organizations with which DHSS has contracted to provide medical
assistance or benefits.
This bill requires DHSS to seek a waiver from the secretary of the federal
department of agriculture to apply certain special eligibility criteria to migrant
workers and their dependents in determining eligibility for benefits under the food
stamp program. The bill uses the definition of migrant worker that is used for the
waiver that the bill requires DHSS to request for migrant workers under the medical
assistance program. If the waiver is granted and in effect, DHSS must determine
food stamp eligibility for a migrant worker and his or her dependents using an
income-averaging method, if the migrant worker and his or her dependents are not
eligible for food stamps using prospective budgeting.
Under current law, DHSS has an appropriation for employment and training
programs, which include the JOBS program and the food stamp employment and
training project. Under this appropriation, funds that are not encumbered by
December 31 of each year lapse to the general fund on the next January 1 unless
transferred to the next calendar year by JCF.
This bill allows DHSS to carry forward for a county funds that are committed
to the county under a performance-based contract for a specific calendar year and
that are earned by the county in that year to the following calendar year, if the
carry-forward is approved by the secretary of administration, without approval of
JCF. The funds carried forward do not affect a county's base allocation.
The low-income energy assistance program (LIEAP) is a federal block grant
program designed to support energy costs incurred by low-income households.
Current law requires that $2,400,000 of LIEAP block grant funds be allocated to the

payment of crisis assistance benefits to meet weather-related or fuel supply
shortage emergencies. This bill eliminates this requirement and allows DHSS or,
after July 1, 1996, DOA to determine the amount of the allocation.
Health
Under current law, with certain exceptions, the 3-member cost containment
commission is responsible for reviewing and approving the following proposed
projects:
1. A capital expenditure in excess of $1,000,000 made by or on behalf of a
hospital.
2. The implementation of new services to a hospital that exceed $500,000 in a
12-month period.
3. An expenditure in excess of $500,000 made by or on behalf of a hospital,
independent practitioner, limited liability company, partnership, unincorporated
medical group or service corporation for clinical medical equipment.
4. The purchase or acquisition of a hospital.
5. The construction or operation of an ambulatory surgery center or a home
health agency.
Current law sets forth criteria that the commission must use in its review of an
application for project approval. These criteria focus on the economic efficiency of
and need for the proposed projects. The first priority of the commission in applying
the criteria must be cost containment.
The cost containment council represents economic, provider, scientific and
consumer viewpoints. It advises the commission, reviews proposed commission
rules and periodically reports on the performance of the commission and its
operations.
This bill eliminates the cost containment commission, the cost containment
council and the capital expenditure review program.
Under current law, DHSS must investigate the concept of regulating a new
category of health care providers known as rural medical centers.
This bill eliminates that requirement and establishes rural medical centers as
a category of health care providers that, beginning on January 1, 1997, must be
licensed, inspected and otherwise regulated by DHSS. Under the bill, a facility may
be regulated as a rural medical center if it is located in a county, city, town or village
that has a population of less than 15,000 and in an area that the federal bureau of
the census has not defined as an urbanized area, and if it provides 2 or more health
care services. "Health care services" means those provided by a hospital, nursing
home, hospice, rural health clinic or ambulatory surgery center; or home health
services, outpatient physical therapy services, end-stage renal disease services or
other services that are specified by DHSS by rule.
The bill establishes licensing procedures and requires that DHSS promulgate
rules that establish standards for operation of rural medical centers, minimum
requirements for license issuance, licensure fee amounts, and procedures and
criteria for waiver of or variance from standards and requirements. The bill

authorizes DHSS to conduct unannounced inspections of rural medical centers and
requires a rural medical center to provide access to any patient health care records
necessary to fulfill the purpose of any DHSS inspections or investigations. The bill
prohibits an unlicensed entity from using the phrase "rural medical center" to
describe itself, prohibits intentional interference with any investigation by DHSS of
alleged violations, prohibits certain intentional retaliation or discrimination against
employes or patients and prohibits intentional destruction or modification of original
inspection reports.
Under current law, DHSS allocates $50,000 in each fiscal year as a grant for the
provision of direct health care services to migrant workers and their families. A
migrant worker is any person who temporarily leaves a principal place of residence
outside of this state and comes to this state for not more than 10 months in a year
to accept seasonal employment related to unmanufactured agricultural or
horticultural commodities. This bill eliminates the migrant health care program.
Under current law, DHSS is authorized to conduct plan reviews of all capital
construction and remodeling for nursing homes and hospitals, to ensure compliance
with certain federal life safety code requirements for nursing homes and with certain
physical plant requirements. At the same time, DILHR must examine plans of public
buildings (which include hospitals and nursing homes) for compliance with building
code requirements. Both DHSS and DILHR charge fees for these plan reviews.
Beginning on October 1, 1995, this bill exempts hospitals and nursing homes
from DILHR's review for compliance with building code requirements. Instead, the
bill requires DHSS to conduct plan reviews of hospitals and nursing homes for
compliance with both the building code requirements and with the physical plant
and life safety code requirements. The bill requires DHSS to promulgate rules that
establish fees for the reviews that are less than the sum of the amounts collected by
both DHSS and DILHR. However, until DHSS promulgates these rules or until June
30, 1996, whichever is earlier, the bill permits DHSS to collect fees that are equal to
the amounts collected by both DHSS and DILHR.
Under current law, a community-based residential facility (C-BRF) is
annually licensed by DHSS and annually pays a fee, plus a per resident fee, based
on the C-BRF's licensed capacity. Certain adult family homes are annually licensed
by county departments of social services, human services, community programs or
developmental disabilities services or by DHSS.
Beginning on January 1, 1996, this bill changes the licensure period for a
C-BRF and for a licensed adult family home to 2 years, increases biennial license fees
for C-BRFs and establishes license fees for licensed adult family homes.
Under current law, DHSS may order certain sanctions against a C-BRF that
violates specific statutes or rules and, if the C-BRF fails to comply with such an
order, may directly assess forfeitures (civil monetary penalties). Under this bill, if
DHSS provides notice and explanations of sanctions or penalties, DHSS may,
without issuing an order, assess forfeitures against a C-BRF that violates statutes
or rules.

Under current law, DHSS must award grants to local health departments to
fund specified activities related to lead poisoning or lead exposure, including
educational programs, screening, care coordination and follow-up services such as
lead inspection. Certain grants are awarded under criteria that ensure that funding
is provided for areas, including Milwaukee, with significant incidence of lead
poisoning or lead exposure. This bill eliminates these grants under the program.
Under current law, DHSS provides funds to the Marquette University School
of Dentistry to provide dental services at clinics in the city of Milwaukee. This bill
provides that the school of dentistry must also use the funds to provide dental
services at correctional centers in Milwaukee County.
Under current law, DHSS is authorized to award grants to provide
mammography services to women who are 40 years or older. The women must live
in any of 12 rural counties that are specified in rules promulgated by DHSS as having
the highest incidence of late-stage breast cancer in this state.
This bill expands the purpose of grants for mammography services to include
breast cancer screening services and makes these services available statewide to
women who are 40 years of age or older.
Under current law, DHSS must carry out a statewide immunization program
to eliminate mumps, measles, German measles, diptheria, whooping cough,
poliomyelitis and any other diseases that DHSS has specified by rule and to protect
against tetanus. Annually by July 1 until July 1, 1994, DHSS must submit a report
for distribution to the standing committees of the legislature on the success of the
statewide immunization program. This bill extends the reporting requirement until
July 1, 1996.
Under current law, DHSS is required to distribute not more than $375,600 in
fiscal year 1993-94 and not more than $491,500 in fiscal year 1994-95 to reimburse
or supplement the reimbursement of the cost of certain drugs for certain individuals
who are infected with the human immunodeficiency virus (HIV). This bill removes
this statutory allocation. This allows DHSS to determine the amount that will be
used for drug reimbursement for HIV-infected individuals, subject to the
availability of funds in the pertinent appropriation.
Children
Under current law, DHSS investigates and licenses child welfare agencies,
group homes, shelter care facilities (nonsecure places of temporary care and physical
custody for children) and day care centers. Currently, DHSS, a county department
and, if licensed to do so by DHSS, a child welfare agency investigate and license foster
homes and treatment foster homes. This bill requires that, as part of the prelicensing
investigation of a child welfare agency, group home, shelter care facility or day care
center, DHSS, with the assistance of DOJ, conduct a background investigation of the
applicant for the license. If the applicant is applying for a license to operate a day
care center for 4 to 8 children, DHSS must also conduct a background investigation
of the employes and prospective employes of the day care center. The bill also
requires a shelter care facility, child welfare agency, group home or day care center

that cares for 9 or more children to conduct a background investigation of all
employes and prospective employes as a condition of initial licensure or license
renewal. Under the bill, if the person being investigated is a nonresident, or at any
time within the preceding 5 years has been a nonresident, or if the person conducting
the investigation has a reasonable basis for further investigation of the person, the
person conducting the investigation must require the person to be photographed and
fingerprinted and DOJ may submit the fingerprints to the federal bureau of
investigation for the purpose of verifying the identity of the person fingerprinted and
obtaining his or her arrest and conviction record. DHSS may not issue a license to
or renew the license of, and a shelter care facility, child welfare agency, group home
or day care center may not employ, any person who has been convicted of a felony
drug violation, who has had imposed on him or her an increased penalty for habitual
criminality, for certain domestic abuse offenses, for use of a dangerous weapon, for
committing a violent crime in a school zone, for use of a bulletproof garment, for
concealing his or her identity or for a hate crime or, subject to certain exceptions, who
has been convicted of a crime against life and bodily security, a crime against sexual
morality or a crime against children. DHSS may order a child welfare agency, group
home, shelter care facility or day care center that employs a person who has been so
convicted or so punished to terminate the employment of that person immediately
on receipt of the order. The bill also requires DHSS, a county department or a child
welfare agency to conduct the same background investigation of an applicant for a
foster home or a treatment foster home license and any adult resident of the home
and to deny licensure to any applicant who has been so convicted or so punished.
Under current law, no person may establish a shelter care facility without first
obtaining a license from DHSS. Current law does not specify a licensure period or
a license fee for shelter care facilities. This bill establishes a 2-year licensure period
for shelter care facilities and a biennial fee of $180, plus $24 per child, based on
licensed capacity.
Under current law, a child welfare agency that provides care and maintenance
for children must pay a biennial license fee of $75, plus $10 per child, based on
licensed capacity. This bill raises that fee to $180, plus $24 per child, based on
licensed capacity.
Under current law, a child welfare agency that places children in foster homes
or group homes must pay a biennial license fee of $200. This bill raises that fee to
$220.
Under current law, a group home must pay a biennial license fee of $75, plus
$10 per child, based on licensed capacity. This bill raises that fee to $180, plus $24
per child, based on licensed capacity.
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