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2013 - 2014 LEGISLATURE
March 1, 2013 - Introduced by Representatives Richards, Pasch, C. Taylor, Barca,
Barnes, Berceau, Bernard Schaber, Bewley, Billings, Clark, Danou,
Doyle, Genrich, Goyke, Hebl, Hesselbein, Hintz, Hulsey, Johnson,
Jorgensen, Kahl, Kessler, Kolste, Mason, Milroy, Ohnstad, Pope, Riemer,
Ringhand, Sargent, Shankland, Sinicki, Smith, Vruwink, Wachs, Wright,
Young, Zamarripa and Zepnick, cosponsored by Senators Erpenbach, Risser,
Carpenter, T. Cullen, Hansen, Harris, Jauch, C. Larson, Lassa, Lehman,
Miller, Shilling, Taylor, Vinehout and Wirch. Referred to Committee on
Health.
AB53,1,6 1An Act to repeal 20.435 (4) (h), 49.45 (23), 49.471 (11g) (c), 49.67, 149.12 (2) (f)
22. g., 227.01 (13) (ur) and 227.42 (7); to amend 20.435 (4) (hm), 20.435 (4) (jw),
325.77 (2), 49.45 (59) (b), 49.471 (11) (intro.) and 49.686 (3) (d); and to create
449.471 (1) (cr), 49.471 (4) (b) 5., 49.471 (4m) and 49.471 (11g) of the statutes;
5relating to: Medical Assistance for certain adults who are not currently
6eligible for traditional Medicaid or BadgerCare Plus.
Analysis by the Legislative Reference Bureau
Currently, the Department of Health Services (DHS) administers the Medical
Assistance (MA) program, which is a joint federal and state program that provides
health services to individuals who have limited resources. Some services are
provided through programs that operate under a waiver of federal Medicaid laws,
including services provided through the BadgerCare Plus (BC+) and BadgerCare
Plus Core (BC+ Core) programs. Under current law, BC+ provides health and
medical services to eligible recipients and has a standard plan with a larger set of
benefits and a Benchmark plan with fewer benefits. Recipients of standard BC+
benefits may be required to pay certain copayments for services and, with some
exceptions, to pay premiums. Recipients of BC+ under the Benchmark plan have
increased copayments and coinsurance for certain services, and certain recipients
under the Benchmark plan may be charged higher premiums compared to certain
recipients under the standard plan.

Under current law, unless DHS has a policy that conflicts with current state law
eligibility requirements, the following individuals, among others, are eligible for
benefits under the BC+ standard plan: a pregnant women whose family income does
not exceed 200 percent of the federal poverty line (FPL); a child meeting certain
criteria whose family income does not exceed 200 percent of the FPL; a child meeting
certain criteria whose family income exceeds 150 percent of the FPL but the
difference between the actual family income and 150 percent of the FPL is expended
on behalf of a member of the child's family or the child for certain medical or health
reasons; a parent or caretaker relative of a child whose family income does not exceed
200 percent of the FPL; and an individual who qualifies for a transitional extension
of MA benefits even though his or her income increases above the poverty line. The
following individuals, among others, are eligible for benefits under the BC+
Benchmark plan, under current law: a pregnant woman whose family income
exceeds 200 percent, but does not exceed 300 percent, of the FPL; a pregnant woman
and everyone in her family if her family income exceeds 300 percent of the FPL but
the difference between her actual family income and 300 percent of the FPL is
expended for any family member's or her medical or health care; a child whose family
income exceeds 200 percent, but does not exceed 300 percent, of the FPL; and a
parent or caretaker of a child whose income includes self-employment income but
does not exceed 200 percent of the FPL after depreciation is deducted.
Under current law, DHS also administers BC+ Core, which provides basic
primary and preventive care to eligible individuals. Adults who are under age 65,
who have family incomes that do not exceed 200 percent of the FPL, and who are not
otherwise eligible for MA, including BC+, are eligible for benefits under BC+ Core,
unless DHS has a policy that conflicts with current state law eligibility
requirements.
DHS also currently administers the BadgerCare Plus Basic (BC+ Basic) plan,
which is not an MA program but is funded by premiums paid by plan participants.
To be eligible for the BC+ Basic plan, an individual must be on the waiting list for
BC+ Core. BC+ Basic provides health care benefits that do not exceed those benefits
provided by BC+ Core. Under current law, BC+ Basic terminates on January 1, 2014.
Currently, beginning on January 1, 2014, the federal Patient Protection and
Affordable Care Act (PPACA) requires states that participate in the Medicaid
program to offer medical assistance benefits to adults who are under 65 years of age,
are not pregnant, are not entitled to Medicare benefits, are not otherwise eligible for
Medicaid, and have an income, as calculated under a specified method, that does not
exceed 133 percent of the FPL (expansion population). PPACA requires the state to
provide benefits to the expansion population that meet the standards of benchmark
coverage as defined in PPACA. The federal Department of Health and Human
Services (federal DHHS) pays a matching rate, known as the federal medical
assistance percentage or FMAP, to states that participate in the Medicaid program.
PPACA creates enhanced FMAPs, which are rates that are higher than the typical
matching rate, for states to cover newly eligible individuals in the expansion
population and for states that already covered certain individuals in the expansion
population to cover the entire expansion population. The United States Supreme

Court decision, in National Federation of Independent Business v. Sebelius, 567 U.S.
___, 132 S. Ct. 2566 (2012), makes coverage of the expansion population by states
optional instead of mandatory.
This bill makes adults who are under 65 years of age, who are not pregnant, who
are not otherwise eligible for MA under the state's traditional MA program or BC+,
and whose income, as determined under federal law, do not exceed 133 percent of the
FPL (Wisconsin expansion population) eligible for the BC+ Benchmark plan
beginning January 1, 2014. The bill also eliminates BC+ Core and the language
regarding BC+ Basic.
The bill requires that, if the benefits under the BC+ Benchmark plan are not
sufficient to qualify DHS to obtain an enhanced FMAP, DHS must provide coverage
that complies with PPACA in order to qualify for an enhanced FMAP. Additionally,
if the federal DHHS prohibits charging a copayment or premium to the Wisconsin
expansion population in order to qualify for an enhanced FMAP, DHS may not charge
copayments or premiums that disqualify DHS from obtaining an enhanced FMAP.
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:
AB53, s. 1 1Section 1. 20.435 (4) (h) of the statutes is repealed.
AB53, s. 2 2Section 2. 20.435 (4) (hm) of the statutes is amended to read:
AB53,3,63 20.435 (4) (hm) BadgerCare Plus Basic Plan; benefits and administration. All
4moneys received from premiums under s. 49.67 (4), 2011 stats., to pay for the
5provision of services under the BadgerCare Plus Basic Plan under s. 49.67, 2011
6stats.,
and for administration of the plan.
AB53, s. 3 7Section 3. 20.435 (4) (jw) of the statutes is amended to read:
AB53,4,48 20.435 (4) (jw) BadgerCare Plus, hospital assessment, and pharmacy benefits
9purchasing pool administrative costs.
All moneys received from payment of
10enrollment fees under the program under s. 49.45 (23), 2011 stats., all moneys
11transferred under s. 50.38 (9), all moneys transferred from the appropriation account
12under par. (jz), and 10 percent of all moneys received from penalty assessments
13under s. 49.471 (9) (c), for administration of the program under s. 49.45 (23), 2011

1stats.
, to provide a portion of the state share of administrative costs for the
2BadgerCare Plus Medical Assistance program under s. 49.471, for administration of
3the hospital assessment under s. 50.38, and to administer a contract with an entity
4to operate the pharmacy benefits purchasing pool under s. 146.45.
AB53, s. 4 5Section 4. 25.77 (2) of the statutes is amended to read:
AB53,4,96 25.77 (2) All public funds that are related to payments under s. 49.45 and that
7are transferred or certified under 42 CFR 433.51 (b) and used as the nonfederal and
8federal share of Medical Assistance funding, except funds that are deposited into the
9appropriation accounts under s. 20.435 (4) (h), (kx) , or (ky).
AB53, s. 5 10Section 5. 49.45 (23) of the statutes is repealed.
AB53, s. 6 11Section 6. 49.45 (59) (b) of the statutes is amended to read:
AB53,4,2412 49.45 (59) (b) Health maintenance organizations shall pay all of the moneys
13they receive under par. (a) to eligible hospitals, as defined in s. 50.38 (1), within 15
14days after receiving the moneys. The department shall specify in contracts with
15health maintenance organizations to provide medical assistance a method that
16health maintenance organizations shall use to allocate the amounts received under
17par. (a) among eligible hospitals based on the number of discharges from inpatient
18stays and the number of outpatient visits for which the health maintenance
19organization paid such a hospital in the previous month for enrollees who are
20recipients of medical assistance, except enrollees who receive medical assistance
21under s. 49.45 (23)
. Payments under this paragraph shall be in addition to any
22amount that a health maintenance organization is required by agreement between
23the health maintenance organization and a hospital to pay the hospital for providing
24services to the health maintenance organization's enrollees.
AB53, s. 7 25Section 7. 49.471 (1) (cr) of the statutes is created to read:
AB53,5,2
149.471 (1) (cr) "Enhanced federal medical assistance percentage" means a
2federal medical assistance percentage described under 42 USC 1396d (y) or (z).
AB53, s. 8 3Section 8. 49.471 (4) (b) 5. of the statutes is created to read:
AB53,5,84 49.471 (4) (b) 5. Subject to sub. (4m), an adult who is under 65 years of age; who
5is not pregnant; who is not otherwise eligible for Medical Assistance under par. (a)
6or (b) 1. to 4. or s. 49.46 (1); and whose income, as determined under the method
7described in 42 USC 1396a (e) (14), does not exceed 133 percent of the poverty line
8for a family the size of the individual's family.
AB53, s. 9 9Section 9. 49.471 (4m) of the statutes is created to read:
AB53,5,1710 49.471 (4m) Medicaid expansion. For services provided to individuals
11described under sub. (4) (b) 5., the department shall comply with all federal
12requirements to qualify for the highest available enhanced federal medical
13assistance percentage. The department shall submit any amendment to the state
14medical assistance plan, request for a waiver of federal Medicaid law, or other
15approval required by the federal government to provide services to the individuals
16described under sub. (4) (b) 5. and qualify for the highest available enhanced federal
17medical assistance percentage.
AB53, s. 10 18Section 10. 49.471 (11) (intro.) of the statutes is amended to read:
AB53,5,2219 49.471 (11) Benchmark plan benefits and copayments. (intro.) Recipients
20Subject to sub. (11g), recipients who are not eligible for the benefits described in s.
2149.46 (2) (a) and (b) shall have coverage of the following benefits and pay the
22following copayments:
AB53, s. 11 23Section 11 . 49.471 (11g) of the statutes is created to read:
AB53,6,424 49.471 (11g) Medicaid expansion benchmark coverage. (a) If, to obtain an
25enhanced federal medical assistance percentage, the federal department of health

1and human services prohibits charging of a copayment or premium to an individual
2described under sub (4) (b) 5., the department may not charge the copayments
3described under sub. (11) or a premium that would disqualify the department from
4obtaining an enhanced federal medical assistance percentage.
AB53,6,115 (b) If the federal department of health and human services determines that the
6benefits provided under sub. (11) are not sufficient to qualify the department to
7obtain an enhanced federal medical assistance percentage for benefits provided to
8individuals described under sub. (4) (b) 5., the department shall provide any
9benchmark coverage or benchmark equivalent coverage that complies with 42 USC
101396u-7
to qualify to obtain the highest available enhanced federal medical
11assistance percentage.
AB53,6,1512 (c) Notwithstanding sub. (13), the department may not create a policy under
13s. 49.45 (2m) (c) that affects the eligibility or benefits of the individuals described
14under sub. (4) (b) 5. such that the department fails to obtain an enhanced federal
15medical assistance percentage.
AB53, s. 12 16Section 12 . 49.471 (11g) (c) of the statutes, as created by 2013 Wisconsin Act
17.... (this act), is repealed.
AB53, s. 13 18Section 13. 49.67 of the statutes is repealed.
AB53, s. 14 19Section 14. 49.686 (3) (d) of the statutes is amended to read:
AB53,6,2520 49.686 (3) (d) Has applied for coverage under and has been denied eligibility
21for medical assistance within 12 months prior to application for reimbursement
22under sub. (2). This paragraph does not apply to an individual who is eligible for
23benefits under the demonstration project for childless adults under s. 49.45 (23) or
24to an individual who is eligible for benefits under
BadgerCare Plus under s. 49.471
25(11).
AB53, s. 15
1Section 15. 149.12 (2) (f) 2. g. of the statutes is repealed.
AB53, s. 16 2Section 16. 227.01 (13) (ur) of the statutes is repealed.
AB53, s. 17 3Section 17. 227.42 (7) of the statutes is repealed.
AB53, s. 18 4Section 18. Effective dates. This act takes effect on January 1, 2014, except
5as follows:
AB53,7,76 (1) The repeal of section 49.471 (11g) (c) of the statutes takes effect on January
71, 2015.
AB53,7,88 (End)
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