AB119: Bill Text

LRB-1031/1

PJK:wlj:rs

2005 - 2006 LEGISLATURE

2005 Assembly BILL 119

February 22, 2005 - Introduced by Representatives Hubler, Vruwink, Kreuser, Zepnick, Gronemus, Sherman, Berceau, Van Akkeren, Richards, Pocan, Ainsworth, Musser, Hines, Freese, Hahn, Staskunas, Pope-Roberts, Shilling, Molepske, Gunderson, Black, Albers, Seidel and Ott, cosponsored by Senators Jauch, Miller, A. Lasee, Harsdorf, Lassa and Hansen. Referred to Committee on Health.

AB119,1,9 An Act to repeal 49.46 (1) (L); to renumber and amend 49.47 (4) (h); to amend 49.46 (1) (a) 1., 49.46 (1) (a) 1g., 49.46 (1) (a) 1m., 49.46 (1) (a) 6., 49.46 (1) (a) 9., 49.46 (1) (a) 10., 49.46 (1) (a) 11., 49.46 (1) (a) 12., 49.46 (1) (am) 1. a., 49.46 (1) (am) 1. b., 49.46 (1) (e), 49.47 (4) (am) 1., 49.47 (4) (am) 2., 49.47 (4) (c) 1., 49.47 (4) (c) 3., 49.47 (4) (j) and 49.665 (4) (a) 1.; and to create 49.46 (1) (ar), 49.47 (4) (cg) 3. and 49.665 (4) (d) of the statutes; relating to: exempting amounts claimed for depreciation for purposes of calculating farm and self-employment income under the Medical Assistance and Badger Care health care programs.

Analysis by the Legislative Reference Bureau

Currently, the Department of Health and Family Services (DHFS) administers the Medical Assistance (MA) and Badger Care health care (BadgerCare) programs.

Under part of the MA program, DHFS provides health care services and benefits to individuals who meet the requirements under one of the following MA eligibility categories:

1. AFDC-MA. Under this category, an individual who meets the nonfinancial and financial requirements for the federal Aid to Families with Dependent Children (AFDC) program that were in effect on July 16, 1996, without regard to the individual's assets, is eligible to receive MA. The AFDC program was replaced with the federal Temporary Assistance for Needy Families (TANF) program on July 16, 1996. Generally, individuals who qualify under the AFDC-MA category are certain children under 19 years of age, their caretaker relatives, and pregnant women in the eighth or ninth month of pregnancy.

2. AFDC-related MA. This category includes certain children under the age of 19, their caretaker relatives, and pregnant women throughout the entire pregnancy who meet the income requirements of the AFDC program that were in effect on July, 16, 1996, without regard to assets, but who would not have received an AFDC payment. Also eligible under this category are children under the age of 18 and pregnant women whose incomes do not exceed 133.33 percent of the maximum payment under the AFDC program, and whose assets do not exceed certain asset limits.

3. Healthy Start. This category includes children between the ages of six and 19 whose incomes do not exceed 100 percent of the federal poverty line, children under the age of six and pregnant women whose incomes do not exceed 133.33 percent of the federal poverty line, and children under the age of six and pregnant women whose incomes do not exceed 185 percent of the federal poverty line.

The BadgerCare program provides health care coverage to eligible low-income children who do not reside with a parent and to eligible low-income families. A child or family is generally considered low-income if the child's or family's income does not exceed 185 percent of the poverty line.

Currently, in calculating an individual's income for the MA or BadgerCare program, if the individual has farm or self-employment income, DHFS calculates the amount of that income by adding the amount that the individual claimed for depreciation to the amount of the individual's net taxable income.

This bill prohibits DHFS from adding any amounts claimed for depreciation to an individual's net taxable farm or self-employment income for purposes of determining whether an individual meets the income limits for the MA program under the AFDC-MA, AFDC-related MA, or Healthy Start eligibility categories or for the BadgerCare program.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB119, s. 1 Section 1. 49.46 (1) (a) 1. of the statutes is amended to read:

AB119,2,4 49.46 (1) (a) 1. Notwithstanding s. 49.19 (20), any individual who, without regard to the individual's resources and subject to par. (ar), would qualify for a grant of aid to families with dependent children under s. 49.19.

AB119, s. 2 Section 2. 49.46 (1) (a) 1g. of the statutes is amended to read:

AB119,3,5 49.46 (1) (a) 1g. Notwithstanding s. 49.19 (20), any individual who, without regard to the individual's resources and subject to par. (ar), would qualify for a grant of aid to families with dependent children but who would not receive the aid solely because of the application of s. 49.19 (11) (a) 7.

AB119, s. 3 Section 3. 49.46 (1) (a) 1m. of the statutes is amended to read:

AB119,3,10 49.46 (1) (a) 1m. Any pregnant woman whose income, determined in accordance with par. (ar), does not exceed the standard of need under s. 49.19 (11) and whose pregnancy is medically verified. Eligibility continues to the last day of the month in which the 60th day after the last day of the pregnancy falls.

AB119, s. 4 Section 4. 49.46 (1) (a) 6. of the statutes is amended to read:

AB119,3,15 49.46 (1) (a) 6. Any person not described in pars. (c) to (e) who, without regard to the individual's resources and subject to par. (ar), would be considered, under federal law, to be receiving aid to families with dependent children for the purpose of determining eligibility for medical assistance.

AB119, s. 5 Section 5. 49.46 (1) (a) 9. of the statutes is amended to read:

AB119,3,19 49.46 (1) (a) 9. Any pregnant woman not described under subd. 1., 1g., or 1m. whose family income, determined in accordance with par. (ar), does not exceed 133% 133 percent of the poverty line for a family the size of the woman's family.

AB119, s. 6 Section 6. 49.46 (1) (a) 10. of the statutes is amended to read:

AB119,3,24 49.46 (1) (a) 10. Any child not described under subd. 1. or 1g. who is under 6 years of age and whose family income, determined in accordance with par. (ar), does not exceed 133% 133 percent of the poverty line for a family the size of the child's family.

AB119, s. 7 Section 7. 49.46 (1) (a) 11. of the statutes is amended to read:

AB119,4,9 49.46 (1) (a) 11. If a waiver under s. 49.665 is granted and in effect, any child not described under subd. 1. or 1g. who has attained the age of 6 but has not attained the age of 19 and whose family income, determined in accordance with par. (ar), does not exceed 100% 100 percent of the poverty line for a family the size of the child's family. If a waiver under s. 49.665 is not granted or in effect, any child not described in subd. 1. or 1g. who was born after September 30,1983, who has attained the age of 6 but has not attained the age of 19 and whose family income, determined in accordance with par. (ar), does not exceed 100% 100 percent of the poverty line for a family the size of the child's family.

AB119, s. 8 Section 8. 49.46 (1) (a) 12. of the statutes is amended to read:

AB119,4,13 49.46 (1) (a) 12. Any child not described under subd. 1. or 1g. who is under 19 years of age and whose income, determined in accordance with par. (ar), does not exceed the standard of need under s. 49.19 (11).

AB119, s. 9 Section 9. 49.46 (1) (am) 1. a. of the statutes is amended to read:

AB119,4,20 49.46 (1) (am) 1. a. A pregnant woman whose family income, determined in accordance with par. (ar) and before any income is disregarded under this paragraph, does not exceed, in state fiscal year 1994-95, 155% 155 percent of the poverty line for a family the size of the woman's family; and, in each state fiscal year after the 1994-95 state fiscal year, 185% 185 percent of the poverty line for a family the size of the woman's family.

AB119, s. 10 Section 10. 49.46 (1) (am) 1. b. of the statutes is amended to read:

AB119,5,2 49.46 (1) (am) 1. b. A child who is under 6 years of age and whose family income, determined in accordance with par. (ar) and before any income is disregarded under this paragraph, does not exceed, in state fiscal year 1994-95, 155% 155 percent of the poverty line for a family the size of the child's family; and, in each state fiscal year after the 1994-95 state fiscal year, 185% 185 percent of the poverty line for a family the size of the child's family.

AB119, s. 11 Section 11 . 49.46 (1) (ar) of the statutes is created to read:

AB119,5,13 49.46 (1) (ar) 1. Except as provided in subd. 2. and except to the extent that the determination is inconsistent with 42 USC 1396a (a) (17), for purposes of determining under par. (a) 1., 1g., or 6. whether an individual would qualify for a grant of aid to families with dependent children under s. 49.19 or would be considered, under federal law, to be receiving aid to families with dependent children, or of determining whether an individual meets the income limits under par. (a) 1m., 9., 10., 11., or 12., "income" includes income that would be included in determining eligibility for aid to families with dependent children under s. 49.19 and excludes income that would be excluded in determining eligibility for aid to families with dependent children under s. 49.19.

AB119,5,20 2. Notwithstanding s. 49.19 (5), for purposes of determining under par. (a) 1., 1g., or 6. whether an individual would qualify for a grant of aid to families with dependent children under s. 49.19 or would be considered, under federal law, to be receiving aid to families with dependent children, or of determining whether an individual meets the income limits under par. (a) 1m., 9., 10., 11., or 12., (am), or (e), the department shall exclude from the calculation of farm or self-employment income any amounts claimed for depreciation for income tax purposes.

AB119, s. 12 Section 12. 49.46 (1) (e) of the statutes is amended to read:

AB119,6,3 49.46 (1) (e) If an application under s. 49.47 (3) shows that the individual individual's income, determined in accordance with par. (ar), meets the income limits under s. 49.19, or that the individual meets the income and resource requirements under federal Title XVI or s. 49.77, or that the individual is an essential person, an accommodated person, or a patient in a public medical institution, the individual shall be granted the benefits enumerated under sub. (2) whether or not the individual requests or receives a grant of any of such aids.

AB119, s. 13 Section 13. 49.46 (1) (L) of the statutes is repealed.

AB119, s. 14 Section 14. 49.47 (4) (am) 1. of the statutes is amended to read:

AB119,6,11 49.47 (4) (am) 1. A pregnant woman whose family income , determined in accordance with par. (cg), does not exceed 155% 155 percent of the poverty line for a family the size of the woman's family, except that, if a waiver under par. (j) or a change in the approved state plan under s. 49.46 (1) (am) 2. is in effect, the income limit is 185% 185 percent of the poverty line for a family the size of the woman's family in each state fiscal year after the 1994-95 state fiscal year.

AB119, s. 15 Section 15. 49.47 (4) (am) 2. of the statutes is amended to read:

AB119,6,18 49.47 (4) (am) 2. A child who is under 6 years of age and whose family income, determined in accordance with par. (cg), does not exceed 155% 155 percent of the poverty line for a family the size of the child's family, except that , if a waiver under par. (j) or a change in the approved state plan under s. 49.46 (1) (am) 2. is in effect, the income limit is 185% 185 percent of the poverty line for a family the size of the child's family in each state fiscal year after the 1994-95 state fiscal year.

AB119, s. 16 Section 16. 49.47 (4) (c) 1. of the statutes is amended to read:

AB119,6,25 49.47 (4) (c) 1. Except as provided in par. (am) and as limited by subd. 3., eligibility exists if income, determined in accordance with par. (cg), does not exceed 133 1/3% 133 1/3 percent of the maximum aid to families with dependent children payment under s. 49.19 (11) for the applicant's family size or the combined benefit amount available under supplemental security income under 42 USC 1381 to 1383c and state supplemental aid under s. 49.77, whichever is higher. In this subdivision

AB119,7,8 (cg) 1. Except as provided in subd. 3., for purposes of determining whether an individual's income meets the income requirements under par. (c), "income" includes earned or unearned income that would be included in determining eligibility for the individual or family under s. 49.19 or 49.77, or for the aged, blind , or disabled under 42 USC 1381 to 1385. "Income" does not include and excludes earned or unearned income which that would be excluded in determining eligibility for the individual or family under s. 49.19 or 49.77, or for the aged, blind, or disabled individual under 42 USC 1381 to 1385.

AB119, s. 17 Section 17. 49.47 (4) (c) 3. of the statutes is amended to read:

AB119,7,13 49.47 (4) (c) 3. Except as provided in par. (am), no person is eligible for medical assistance under this section if the person's income, determined in accordance with par. (cg), exceeds the maximum income levels that the U.S. department of health and human services sets for federal financial participation under 42 USC 1396b (f).

AB119, s. 18 Section 18 . 49.47 (4) (cg) 3. of the statutes is created to read:

AB119,7,18 49.47 (4) (cg) 3. Notwithstanding s. 49.19 (5), for purposes of determining whether an individual under par. (ag) or (am) is eligible for medical assistance, the department shall exclude from the calculation of farm or self-employment income any amounts claimed for depreciation for income tax purposes.

AB119, s. 19 Section 19. 49.47 (4) (h) of the statutes is renumbered 49.47 (4) (cg) 2. and amended to read:

AB119,8,2 49.47 (4) (cg) 2. For the Except as provided in subd. 3., for purposes of determining whether an individual meets the income limits under par. (am), "income" includes income that would be used included in determining eligibility for aid to families with dependent children under s. 49.19 and excludes income that would be excluded in determining eligibility for aid to families with dependent children under s. 49.19.

AB119, s. 20 Section 20. 49.47 (4) (j) of the statutes is amended to read: