SB45,717,42 49.43 (8) "Medical assistance" means any services or items under ss. 49.45 to
349.47 49.472, except s. 49.472 (6), and under ss. 49.49 to 49.497, or any payment or
4reimbursement made for such services or items.
SB45, s. 1362 5Section 1362. 49.45 (2) (a) 4. of the statutes is amended to read:
SB45,717,96 49.45 (2) (a) 4. To the extent funds are available under s. 20.435 (1) (4) (bm),
7certify all proper charges and claims for administrative services to the department
8of administration for payment and the department of administration shall draw its
9warrant forthwith.
SB45, s. 1363 10Section 1363. 49.45 (2) (a) 9. of the statutes is amended to read:
SB45,717,1211 49.45 (2) (a) 9. Periodically set forth prescribe conditions of participation and
12terms of reimbursement in a contract with provider of service under this section.
SB45, s. 1364 13Section 1364. 49.45 (2) (a) 10. of the statutes is renumbered 49.45 (2) (a) 10.
14a. and amended to read:
SB45,717,2015 49.45 (2) (a) 10. a. After reasonable notice and opportunity for hearing, recover
16Recover money improperly or erroneously paid, or overpayments to a provider either
17by offsetting or adjusting amounts owed the provider under the program, crediting
18against a provider's future claims for reimbursement for other services or items
19furnished by the provider under the program, or by or requiring the provider to make
20direct payment to the department or its fiscal intermediary.
SB45, s. 1365 21Section 1365. 49.45 (2) (a) 10. b. of the statutes is created to read:
SB45,717,2522 49.45 (2) (a) 10. b. Promptly afford the provider an opportunity to present
23information and argument regarding a recovery imposed under this subdivision, but
24the department need not stay collection of the amount to be recovered pending that
25opportunity.
SB45, s. 1366
1Section 1366. 49.45 (2) (a) 10. c. of the statutes is created to read:
SB45,718,52 49.45 (2) (a) 10. c. Establish a deadline for payment of a recovery imposed under
3this subdivision and, if a provider fails to pay all of the amount to be recovered by the
4deadline, require payment by the provider of interest on any delinquent amount at
5the rate of 1% per month or fraction of a month from the date of the overpayment.
SB45, s. 1367 6Section 1367. 49.45 (2) (a) 11. of the statutes is amended to read:
SB45,718,107 49.45 (2) (a) 11. Establish criteria for the certification of eligible providers of
8services under Title XIX of the social security act medical assistance and, except as
9provided in par. (b) 6. and 7. and s. 49.48, certify such eligible providers who meet
10the criteria
.
SB45, s. 1368 11Section 1368. 49.45 (2) (a) 12. of the statutes is amended to read:
SB45,718,2512 49.45 (2) (a) 12. Decertify or suspend under this subdivision a provider from
13or restrict a provider's participation in the medical assistance program, if after
14giving reasonable notice and opportunity for hearing, the department finds that the
15provider has violated a federal statute or regulation or a state law statute or
16administrative rule and such violations are the violation is by law statute, regulation
17or rule grounds for decertification or suspension restriction. The department shall
18suspend the provider pending the hearing under this subdivision if the department
19includes in its decertification notice findings that the provider's continued
20participation in the medical assistance program pending hearing is likely to lead to
21the irretrievable loss of public funds and is unnecessary to provide adequate access
22to services to medical assistance recipients. As soon as practicable after the hearing,
23the department shall issue a written decision
. No payment may be made under the
24medical assistance program with respect to any service or item furnished by the
25provider subsequent to decertification or during the period of suspension.
SB45, s. 1369
1Section 1369. 49.45 (2) (a) 13. of the statutes is amended to read:
SB45,719,52 49.45 (2) (a) 13. Impose additional sanctions for noncompliance with the
3conditions of participation and terms of provider agreements reimbursement under
4subd. 9. or certification criteria established under subd. 11. and, if prescribed by the
5department, under par. (b) 6. or 7.
SB45, s. 1370 6Section 1370. 49.45 (2) (a) 14. of the statutes is repealed.
SB45, s. 1371 7Section 1371. 49.45 (2) (a) 17. of the statutes is amended to read:
SB45,719,118 49.45 (2) (a) 17. Notify the governor, the joint committee on legislative
9organization, the joint committee on finance and appropriate standing committees,
10as determined by the presiding officer of each house, if the appropriation under s.
1120.435 (5) (4) (b) is insufficient to provide the state share of medical assistance.
SB45, s. 1372 12Section 1372. 49.45 (2) (b) 6. of the statutes is created to read:
SB45,719,1713 49.45 (2) (b) 6. Prescribe criteria for certification of providers of medical
14assistance that limit the number of providers of particular services or that limit the
15amount of resources, including employes and equipment, that a certified provider
16may use to provide particular services to medical assistance recipients, if the
17department finds all of the following:
SB45,719,2018 a. That existing certified providers and resources provide services that are
19adequate in quality and amount to meet the need of medical assistance recipients for
20the particular services.
SB45,719,2221 b. That the potential for medical assistance fraud or abuse exists if additional
22providers are certified or additional resources are used by certified providers.
SB45, s. 1373 23Section 1373. 49.45 (2) (b) 7. of the statutes is created to read:
SB45,720,1124 49.45 (2) (b) 7. Require, as a condition of certification under par. (a) 11., all
25providers of a specific service that is among those enumerated under s. 49.46 (2) (b)

1or 49.47 (6) (a), as specified in this subdivision, to file with the department a surety
2bond issued by a surety company licensed to do business in this state. Providers
3subject to this subdivision provide those services specified under s. 49.46 (2) (b) or
449.47 (6) (a) for which providers have demonstrated significant potential to violate
5s. 49.489 (2) or (3) or 49.49 (1) (a), (2) (a) or (b), (3), (3m) (a), (3p), (4) (a) or (4m) (a),
6to require recovery under par. (a) 10. or to need additional sanctions under par. (a)
713. The surety bond shall be payable to the department and in an amount that would
8reasonably pay the amount of a recovery and the department's costs to pursue
9recovery under par. (a) 10. or to investigate and pursue allegations of violations of
10s. 49.489 or 49.49. The department shall promulgate rules under this subdivision
11that specify all of the following:
SB45,720,1512 a. Services under medical assistance for which providers have demonstrated
13significant potential to violate s. 49.489 (2) or (3) or 49.49 (1) (a), (2) (a) or (b), (3), (3m)
14(a), (3p), (4) (a) or (4m) (a), to require recovery under par. (a) 10. or to need additional
15sanctions under par. (a) 13.
SB45,720,1616 b. The amount or amounts of the surety bonds.
SB45,720,1917 c. Terms of the surety bond, including amounts, if any, without interest to be
18refunded to the provider upon withdrawal or decertification from the medical
19assistance program.
SB45, s. 1374 20Section 1374. 49.45 (3) (ag) of the statutes is amended to read:
SB45,720,2321 49.45 (3) (ag) Reimbursement shall be made to each entity contracted with
22under s. 46.271 (2m) 46.281 (1) (d) for assessments completed functional screens
23performed
under s. 46.271 (2m) (a) 2. 46.281 (1) (d).
SB45, s. 1375 24Section 1375. 49.45 (3) (am) 1. of the statutes is amended to read:
SB45,721,5
149.45 (3) (am) 1. From the appropriation under s. 20.435 (1) (4) (bm), the
2department shall make incentive payments to counties to encourage counties to
3identify medical assistance applicants and recipients who have other health care
4coverage and the providers of the health care coverage and give that information to
5the department.
SB45, s. 1376 6Section 1376. 49.45 (3) (f) 3. of the statutes is amended to read:
SB45,721,107 49.45 (3) (f) 3. Contractors under sub. (2) (b) shall maintain records as required
8by the department for audit purposes. Contractors Upon request of the department,
9contractors
shall immediately provide the department access to the records upon
10request of the department, and
, which the department may audit the records.
SB45, s. 1377 11Section 1377. 49.45 (3) (g) of the statutes is amended to read:
SB45,722,812 49.45 (3) (g) The secretary may appoint authorize personnel to audit or
13investigate and report to the department on any matter involving violations or
14complaints alleging violations of laws statutes, regulations, or rules applicable to
15Title XIX of the federal social security act or the medical assistance program and to
16perform such investigations or audits as are required to verify the actual provision
17of services or items available under the medical assistance program and the
18appropriateness and accuracy of claims for reimbursement submitted by providers
19participating in the program. Department employes appointed authorized by the
20secretary under this paragraph shall be issued, and shall possess at all times during
21which
while they are performing their investigatory or audit functions under this
22section, identification, signed by the secretary which, that specifically designates the
23bearer as possessing the authorization to conduct medical assistance investigations
24or audits. Pursuant to Under the request of a designated person and upon
25presentation of that the person's authorization, providers and medical assistance

1recipients shall immediately accord such the person access to any provider
2personnel,
records, books, recipient medical records, or documents or other
3information needed. Under the written request of a designated person and upon
4presentation of the person's authorization, providers and recipients shall
5immediately accord the person access to any needed patient health care records of
6a recipient.
Authorized employes shall have authority to may hold hearings,
7administer oaths, take testimony and perform all other duties necessary to bring
8such the matter before the department for final adjudication and determination.
SB45, s. 1378 9Section 1378. 49.45 (3) (h) 1. of the statutes is repealed.
SB45, s. 1379 10Section 1379. 49.45 (3) (h) 2. of the statutes is repealed.
SB45, s. 1380 11Section 1380. 49.45 (3) (h) 3. of the statutes is renumbered 49.45 (3) (h) and
12amended to read:
SB45,722,2113 49.45 (3) (h) The failure or refusal of a person to purge himself or herself of
14contempt found under s. 885.12 and perform the act as required by law shall
15constitute
provider immediately to accord department auditors under par. (f) 3. or
16investigators under par. (g) access to any provider personnel, records, books, patient
17health care records of medical assistance recipients or documents or other
18information requested constitutes
grounds for decertification or suspension of that
19person
the provider from participation in the medical assistance program and no
20payment may be made for services rendered by that person subsequent to the
21provider following
decertification or during the period of suspension.
SB45, s. 1381 22Section 1381. 49.45 (3) (j) of the statutes is amended to read:
SB45,722,2423 49.45 (3) (j) Reimbursement for administrative contract costs under this
24section is limited to the funds available under s. 20.435 (1) (4) (bm).
SB45, s. 1382
1Section 1382. 49.45 (5m) (a) of the statutes is renumbered 49.45 (5m) (am) and
2amended to read:
SB45,723,103 49.45 (5m) (am) Notwithstanding sub. (3) (e), from the appropriations under
4s. 20.435 (5) (4) (b) and (o) the department shall distribute not more than $2,256,000
5in each fiscal year, to provide supplemental funds to rural hospitals that, as
6determined by the department, have high utilization of inpatient services by
7patients whose care is provided from governmental sources, and to provide
8supplemental funds to critical access hospitals,
except that the department may not
9distribute funds to a rural hospital or to a critical access hospital to the extent that
10the distribution would exceed any limitation under 42 USC 1396b (i) (3).
SB45, s. 1383 11Section 1383. 49.45 (5m) (ag) of the statutes is created to read:
SB45,723,1312 49.45 (5m) (ag) In this subsection, "critical access hospital" has the meaning
13given in s. 50.33 (1g).
SB45, s. 1384 14Section 1384. 49.45 (5m) (b) of the statutes is amended to read:
SB45,723,1815 49.45 (5m) (b) The supplemental funding for rural hospitals under par. (a) (am)
16shall be based on the utilization, by recipients of medical assistance, of the total
17inpatient days of a rural hospital in relation to that utilization in other rural
18hospitals.
SB45, s. 1385 19Section 1385. 49.45 (6b) (intro.) of the statutes is renumbered 49.45 (6b) and
20amended to read:
SB45,724,221 49.45 (6b) Centers for the developmentally disabled. From the
22appropriation under s. 20.435 (2) (gk), the department may reimburse the cost of
23services provided by the centers for the developmentally disabled. Reimbursement
24to the centers for the developmentally disabled shall be reduced following each
25placement made under s. 46.275 which that involves a relocation from a center for

1the developmentally disabled, as follows: by $184 per day, beginning in fiscal year
21999-2000, and by $190 per day, beginning in fiscal year 2000-01.
SB45, s. 1386 3Section 1386. 49.45 (6b) (a) of the statutes is repealed.
SB45, s. 1387 4Section 1387. 49.45 (6b) (b) of the statutes is repealed.
SB45, s. 1388 5Section 1388. 49.45 (6b) (c) of the statutes is repealed.
SB45, s. 1389 6Section 1389. 49.45 (6m) (ag) (intro.) of the statutes is amended to read:
SB45,724,137 49.45 (6m) (ag) (intro.) Payment for care provided in a facility under this
8subsection made under s. 20.435 (1) (p) or (5) (b) (4) (b), (pa) or (o) shall, except as
9provided in pars. (bg), (bm) and (br), be determined according to a prospective
10payment system updated annually by the department. The payment system shall
11implement standards that are necessary and proper for providing patient care and
12that meet quality and safety standards established under subch. II of ch. 50 and ch.
13150. The payment system shall reflect all of the following:
SB45, s. 1390 14Section 1390. 49.45 (6m) (ag) 3m. of the statutes is repealed.
SB45, s. 1391 15Section 1391. 49.45 (6m) (ag) 8. of the statutes is repealed.
SB45, s. 1392 16Section 1392. 49.45 (6m) (ar) 1. a. of the statutes is amended to read:
SB45,724,2417 49.45 (6m) (ar) 1. a. The department shall establish standards for payment of
18allowable direct care costs, for facilities that do not primarily serve the
19developmentally disabled, that are not less than the median for take into account
20direct care costs for a sample of all of those facilities in this state and separate
21standards for payment of allowable direct care costs, for facilities that primarily
22serve the developmentally disabled, that are not less than the median for take into
23account
direct care costs for a sample of all of those facilities in this state. The
24standards shall be adjusted by the department for regional labor cost variations.
SB45, s. 1393 25Section 1393. 49.45 (6m) (ar) 1. cm. of the statutes is amended to read:
SB45,725,5
149.45 (6m) (ar) 1. cm. Notwithstanding the limitations under par. (ag) 8.,
2funding
Funding distributed to facilities for the provision of active treatment to
3residents with a diagnosis of developmental disability shall be distributed in
4accordance with a method developed by the department which is consistent with a
5prudent buyer approach to payment for services.
SB45, s. 1394 6Section 1394. 49.45 (6m) (ar) 2. a. of the statutes is amended to read:
SB45,725,97 49.45 (6m) (ar) 2. a. The department shall establish one or more standards for
8the payment of support service costs that are not less than the median of take into
9account
support service costs for a sample of all facilities within the state.
SB45, s. 1395 10Section 1395. 49.45 (6m) (ar) 3. a. of the statutes is amended to read:
SB45,725,1411 49.45 (6m) (ar) 3. a. The department shall establish standards, adjusted for
12heating degree day variations in the state, for payment of fuel and utility costs that
13are not less than the median of take into account heating fuel and utility costs for a
14sample of all facilities within the state.
SB45, s. 1396 15Section 1396. 49.45 (6m) (ar) 4. of the statutes is amended to read:
SB45,725,1916 49.45 (6m) (ar) 4. For net property taxes or municipal services, payment shall
17be made for those costs that range from the amount of the previous calendar year's
18tax or the amount of municipal service costs for a period specified by the department,
19subject
to a maximum limit as determined by the department.
SB45, s. 1397 20Section 1397. 49.45 (6m) (ar) 5. a. of the statutes is amended to read:
SB45,725,2421 49.45 (6m) (ar) 5. a. The department shall establish one or more standards for
22the payment of administrative and general costs that are not less than the median
23of
take into account administrative and general costs for a sample of all facilities
24within the state.
SB45, s. 1398 25Section 1398. 49.45 (6m) (ar) 6. of the statutes is amended to read:
SB45,726,6
149.45 (6m) (ar) 6. Capital payment shall be based on a replacement value for
2a facility. The replacement value shall be determined by a commercial estimator
3contracted for by the department and paid for by the facility. The replacement value
4shall be subject to limitations determined by the department, except that the
5department may not reduce final capital payment of a facility by more than $3.50 per
6patient day
.
SB45, s. 1399 7Section 1399. 49.45 (6m) (av) 1. of the statutes is amended to read:
SB45,726,108 49.45 (6m) (av) 1. The department shall calculate a payment rate for a facility
9by applying the criteria set forth under pars. (ag) 1. to 5., and 7. and 8., (am) 1. to 5.
10and (ar) 1. to 5. to information from cost reports submitted by the facility.
SB45, s. 1400 11Section 1400. 49.45 (6m) (av) 5m. of the statutes is amended to read:
SB45,726,1512 49.45 (6m) (av) 5m. Notwithstanding the limitations under par. (ag) 8., the The
13rate under subd. 1., 4. or 5. may be adjusted by the department to reflect payments
14for the provision of active treatment to facility residents with a diagnosis of
15developmental disability.
SB45, s. 1401 16Section 1401. 49.45 (6m) (bp) (intro.) of the statutes is amended to read:
SB45,726,1917 49.45 (6m) (bp) (intro.) Notwithstanding pars. (ag) 3m., (am) 6. and (ar) 6., the
18department may establish payment methods based on actual costs for capital
19payment for a facility to which, after December 31, 1982, any of the following applies:
SB45, s. 1402 20Section 1402. 49.45 (6m) (br) 1. of the statutes is amended to read:
SB45,727,421 49.45 (6m) (br) 1. Notwithstanding s. 20.410 (3) (cd), 20.435 (5) (4) (bt) or (bu)
22or (7) (b) or 20.445 (3) (dz), the department shall reduce allocations of funds to
23counties in the amount of the disallowance from the appropriation account under s.
2420.435 (5) (4) (bt) or (bu) or (7) (b), or the department shall direct the department of
25workforce development to reduce allocations of funds to counties or Wisconsin works

1agencies in the amount of the disallowance from the appropriation account under s.
220.445 (3) (dz) or direct the department of corrections to reduce allocations of funds
3to counties in the amount of the disallowance from the appropriation account under
4s. 20.410 (3) (cd), in accordance with s. 16.544 to the extent applicable.
SB45, s. 1403 5Section 1403. 49.45 (6m) (c) 5. of the statutes is amended to read:
SB45,727,86 49.45 (6m) (c) 5. Admit only patients assessed or who waive or are exempt from
7the requirement of assessment under s. 46.27 (6) (a) or, if required under s. 50.035
8(4n) or 50.04 (2h), who have been referred to a resource center
.
SB45, s. 1404 9Section 1404. 49.45 (6t) (intro.) of the statutes is amended to read:
SB45,727,2010 49.45 (6t) County department and local health department operating
11deficit reduction.
(intro.) From the appropriation under s. 20.435 (5) (4) (o), for
12reduction of operating deficits, as defined under criteria developed by the
13department, incurred by a county department under s. 46.215, 46.22, 46.23 or 51.42
14or by a local health department, as defined in s. 250.01 (4), for services provided
15under s. 49.46 (2) (a) 4. d. and (b) 6. f., j., k. and L., 9. and 15., for case management
16services under s. 49.46 (2) (b) 12. and for mental health day treatment services for
17minors provided under the authorization under 42 USC 1396d (r) (5), the department
18shall allocate up to $4,500,000 in each fiscal year to these county departments, or
19local health departments as determined by the department, and shall perform all of
20the following:
SB45, s. 1405 21Section 1405. 49.45 (6t) (d) of the statutes is amended to read:
SB45,728,222 49.45 (6t) (d) If the federal department of health and human services approves
23for state expenditure in a fiscal year amounts under s. 20.435 (5) (4) (o) that result
24in a lesser allocation amount than that allocated under this subsection or disallows

1use of the allocation of federal medicaid funds under par. (c), reduce allocations under
2this subsection and distribute on a prorated basis, as determined by the department.
SB45, s. 1406 3Section 1406. 49.45 (6u) (intro.) of the statutes is amended to read:
SB45,728,174 49.45 (6u) Supplemental payments to certain facilities. (intro.)
5Notwithstanding sub. (6m), from the appropriation under s. 20.435 (5) (4) (o), for
6reduction of operating deficits, as defined under criteria developed by the
7department, incurred by a facility, as defined under sub. (6m) (a) 3., that is
8established under s. 49.70 (1) or that is owned and operated by a city, village or town,
9the department may not distribute to these facilities more than $38,600,000 in each
10fiscal year, as determined by the department, except that the department shall also
11distribute for this same purpose from the appropriation under s. 20.435 (5) (4) (o) any
12additional federal medical assistance moneys that were not anticipated before
13enactment of the biennial budget act or other legislation affecting s. 20.435 (5) (4) (o)
14and that were not used to fund nursing home rate increases under sub. (6m) (ag) 8.
15The total amount that a county certifies under this subsection may not exceed 100%
16of otherwise-unreimbursed care. In distributing funds under this subsection, the
17department shall perform all of the following:
SB45, s. 1407 18Section 1407. 49.45 (6u) (d) of the statutes is amended to read:
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