SB55-SSA1-CA1,304,6 6957. Page 627, line 2: after that line insert:
SB55-SSA1-CA1,304,7 7" Section 1778d. 49.45 (6v) (b) of the statutes is amended to read:
SB55-SSA1-CA1,304,158 49.45 (6v) (b) The Beginning on October 1, 2003, and annually thereafter, the
9department shall, each year, submit to the joint committee on finance a report for the
10previous fiscal year, except for the 1997-98 fiscal year,
that provides information on
11the utilization of beds by recipients of medical assistance in facilities and a
12discussion and detailed projection of the likely balances, expenditures,
13encumbrances and carry over of currently appropriated amounts in the
14appropriation accounts under s. 20.435 (4) (b) and (o)
for the immediately prior 2
15consecutive fiscal years
.
SB55-SSA1-CA1, s. 1778h 16Section 1778h. 49.45 (6v) (c) of the statutes is amended to read:
SB55-SSA1-CA1,305,1217 49.45 (6v) (c) If the report specified in par. (b) indicates that utilization of beds
18by recipients of medical assistance in facilities is less than estimates for that
19utilization reflected in the intentions of the joint committee on finance, legislature
20and governor, as expressed by them in the budget determinations, the department
21shall include a proposal to transfer moneys from the appropriation under s. 20.435
22(4) (b) to the appropriation under s. 20.435 (7) (bd) for the purpose of increasing
23funding for the community options program under s. 46.27. The amount proposed
24for transfer may not reduce the balance in the appropriation account under s. 20.435

1(4) (b) below an amount necessary to ensure that that appropriation account will end
2the current fiscal year or the current fiscal biennium with a positive balance. The
3secretary shall transfer the amount identified under the proposal
decreased during
4the most recently completed fiscal year from the utilization of beds by recipients of
5medical assistance in facilities in the next most recently completed fiscal year, the
6department shall multiply the difference between the number of days of care
7provided to the recipients in the facilities in each of those prior 2 consecutive fiscal
8years by the average daily costs of care in the facilities for the most recently
9completed fiscal year. The average daily costs of care shall be calculated by dividing
10the total of medical assistance expenditures for care in facilities for the most recently
11completed fiscal year by the total number of days of care provided in facilities in that
12fiscal year
.
SB55-SSA1-CA1, s. 1778p 13Section 1778p. 49.45 (6v) (d) of the statutes is created to read:
SB55-SSA1-CA1,306,414 49.45 (6v) (d) If par. (c) applies and if the amount calculated under par. (c) is
15positive, the department's report under par. (b) shall include a proposal to transfer
16an amount equal to the portion of the amount calculated under par. (c) that is the
17state share of medical assistance expenditures from the appropriation account under
18s. 20.435 (4) (b) to the appropriation account under s. 20.435 (7) (bd) for the purpose
19of increasing funding for the long-term support community options program under
20s. 46.27. If the cochairpersons of the joint committee on finance do not notify the
21secretary within 14 working days after the date on which the department submits
22the proposal that the committee has scheduled a meeting for the purpose of
23reviewing the proposal, the secretary shall transfer the amount identified under the
24proposal. If, within 14 working days after the date on which the department submits
25the proposal, the cochairpersons of the joint committee on finance notify the

1secretary that the committee has scheduled a meeting for the purpose of reviewing
2the proposal, the secretary may transfer moneys from the appropriation account
3under s. 20.435 (4) (b) to the appropriation account under s. 20.435 (7) (bd) only as
4approved by the committee.
SB55-SSA1-CA1, s. 1778r 5Section 1778r. 49.45 (6v) (e) of the statutes is created to read:
SB55-SSA1-CA1,306,86 49.45 (6v) (e) Of the amount required to be transferred by the secretary under
7par. (d), 40% shall be expended for services as specified under s. 46.27 (7) and 60%
8shall be expended for services as specified under s. 46.27 (11).".
SB55-SSA1-CA1,306,9 9958. Page 628, line 21: after that line insert:
SB55-SSA1-CA1,306,10 10" Section 1786g. 49.45 (21) (title) of the statutes is amended to read:
SB55-SSA1-CA1,306,1211 49.45 (21) (title) Transfer of business, liability for Taking over provider's
12operation;
repayments required.
SB55-SSA1-CA1, s. 1786h 13Section 1786h. 49.45 (21) (a) of the statutes is renumbered 49.45 (21) (ar) and
14amended to read:
SB55-SSA1-CA1,306,2315 49.45 (21) (ar) If any provider Before a person may take over the operation of
16a provider that is
liable for repayment of improper or erroneous payments or
17overpayments under ss. 49.43 to 49.497 sells or otherwise transfers ownership of his
18or her business or all or substantially all of the assets of the business, the transferor
19and transferee are each liable for the repayment. Prior to final transfer, the
20transferee is responsible for contacting the department and ascertaining if the
21transferor
, full repayment shall be made. Upon request, the department shall notify
22the provider or the person that intends to take over the operation of the provider as
23to whether the provider
is liable under this paragraph.
SB55-SSA1-CA1, s. 1786i 24Section 1786i. 49.45 (21) (ag) of the statutes is created to read:
SB55-SSA1-CA1,307,3
149.45 (21) (ag) In this subsection, "take over the operation" means obtain, with
2respect to an aspect of a provider's business for which the provider has filed claims
3for medical assistance reimbursement, any of the following:
SB55-SSA1-CA1,307,54 1. Ownership of the provider's business or all or substantially all of the assets
5of the business.
SB55-SSA1-CA1,307,66 2. Majority control over decisions.
SB55-SSA1-CA1,307,77 3. The right to any profits or income.
SB55-SSA1-CA1,307,98 4. The right to contact and offer services to patients, clients, or residents served
9by the provider.
SB55-SSA1-CA1,307,1210 5. An agreement that the provider will not compete with the person at all or
11with respect to a patient, client, resident, service, geographical area, or other part
12of the provider's business.
SB55-SSA1-CA1,307,1413 6. The right to perform services that are substantially similar to services
14performed by the provider at the same location as those performed by the provider.
SB55-SSA1-CA1,307,1615 7. The right to use any distinctive name or symbol by which the provider is
16known in connection with services to be provided by the person.
SB55-SSA1-CA1, s. 1786j 17Section 1786j. 49.45 (21) (b) of the statutes is amended to read:
SB55-SSA1-CA1,308,218 49.45 (21) (b) If a transfer occurs If, notwithstanding the prohibition under par.
19(ar), a person takes over the operation of a provider
and the applicable amount under
20par. (a) (ar) has not been repaid, the department may, in addition to withholding
21certification as authorized under sub. (2) (b) 8.,
proceed against either the transferor
22or the transferee
the provider or the person. Within 30 days after receiving the
23certified provider receives
notice from the department, the transferor or the
24transferee shall pay the
amount shall be repaid in full. Upon failure to comply If the
25amount is not repaid in full
, the department may bring an action to compel payment.

1If a transferor fails to pay within 90 days after receiving notice from the department,
2the department
, may proceed under sub. (2) (a) 12. , or may do both.
SB55-SSA1-CA1, s. 1786k 3Section 1786k. 49.45 (21) (e) of the statutes is created to read:
SB55-SSA1-CA1,308,54 49.45 (21) (e) The department shall promulgate rules to implement this
5subsection.".
SB55-SSA1-CA1,308,6 6959. Page 630, line 7: after that line insert:
SB55-SSA1-CA1,308,7 7" Section 1789b. 49.45 (39) (a) 1. of the statutes is amended to read:
SB55-SSA1-CA1,308,128 49.45 (39) (a) 1. "School" means a public school described under s. 115.01 (1),
9a charter school, as defined in s. 115.001 (1), the Wisconsin Center for the Blind and
10Visually Impaired, or the Wisconsin School Educational Services Program for the
11Deaf and Hard of Hearing. It includes school-operated early childhood programs for
12developmentally delayed and disabled 4-year-old and 5-year-old children.
SB55-SSA1-CA1, s. 1789c 13Section 1789c. 49.45 (39) (am) of the statutes is amended to read:
SB55-SSA1-CA1,309,214 49.45 (39) (am) Plan amendment. No later than September 30, 1995, the
15department shall submit to the federal department of health and human services an
16amendment to the state medical assistance plan to permit the application of pars. (b)
17and (c). If the amendment to the state plan is approved, school districts, cooperative
18educational service agencies, and the department of public instruction on behalf of
19the Wisconsin Center for the Blind and Visually Impaired and the Wisconsin School
20Educational Services Program for the Deaf and Hard of Hearing claim
21reimbursement under pars. (b) and (c). Paragraphs (b) and (c) do not apply unless
22the amendment to the state plan is approved and in effect. The department shall
23submit to the federal department of health and human services an amendment to the
24state plan if necessary to permit the application of pars. (b) and (c) to the Wisconsin

1Center for the Blind and Visually Impaired and the Wisconsin School Educational
2Services Program
for the Deaf and Hard of Hearing.
SB55-SSA1-CA1, s. 1789d 3Section 1789d. 49.45 (39) (b) of the statutes is amended to read:
SB55-SSA1-CA1,310,124 49.45 (39) (b) School medical services. 1. `Payment for school medical services.'
5If a school district or a cooperative educational service agency elects to provide school
6medical services and meets all requirements under par. (c), the department shall
7reimburse the school district or the cooperative educational service agency for 60%
8of the federal share of allowable charges for the school medical services that it
9provides and, as specified in subd. 2., for allowable administrative costs. If the
10Wisconsin Center for the Blind and Visually Impaired or the Wisconsin School
11Educational Services Program for the Deaf and Hard of Hearing elects to provide
12school medical services and meets all requirements under par. (c), the department
13shall reimburse the department of public instruction for 60% of the federal share of
14allowable charges for the school medical services that the Wisconsin Center for the
15Blind and Visually Impaired or the Wisconsin School Educational Services Program
16for the Deaf and Hard of Hearing provides and, as specified in subd. 2., for allowable
17administrative costs. A school district, cooperative educational service agency, the
18Wisconsin Center for the Blind and Visually Impaired or the Wisconsin School
19Educational Services Program for the Deaf and Hard of Hearing may submit, and
20the department shall allow, claims for common carrier transportation costs as a
21school medical service unless the department receives notice from the federal health
22care financing administration that, under a change in federal policy, the claims are
23not allowed. If the department receives the notice, a school district, cooperative
24educational service agency, the Wisconsin Center for the Blind and Visually
25Impaired, or the Wisconsin School Educational Services Program for the Deaf and

1Hard of Hearing
may submit, and the department shall allow, unreimbursed claims
2for common carrier transportation costs incurred before the date of the change in
3federal policy. The department shall promulgate rules establishing a methodology
4for making reimbursements under this paragraph. All other expenses for the school
5medical services provided by a school district or a cooperative educational service
6agency shall be paid for by the school district or the cooperative educational service
7agency with funds received from state or local taxes. The school district, the
8Wisconsin Center for the Blind and Visually Impaired, the Wisconsin School
9Educational Services Program for the Deaf and Hard of Hearing, or the cooperative
10educational service agency shall comply with all requirements of the federal
11department of health and human services for receiving federal financial
12participation.
SB55-SSA1-CA1,310,2213 2. `Payment for school medical services administrative costs.' The department
14shall reimburse a school district or a cooperative educational service agency specified
15under subd. 1. and shall reimburse the department of public instruction on behalf
16of the Wisconsin Center for the Blind and Visually Impaired or the Wisconsin School
17Educational Services Program for the Deaf and Hard of Hearing for 90% of the
18federal share of allowable administrative costs, using time studies, beginning in
19fiscal year 1999-2000. A school district or a cooperative education educational
20service agency may submit, and the department of health and family services shall
21allow, claims for administrative costs incurred during the period that is up to 24
22months before the date of the claim, if allowable under federal law.".
SB55-SSA1-CA1,310,23 23960. Page 630, line 14: after that line insert:
SB55-SSA1-CA1,310,24 24" Section 1791h. 49.45 (47) (c) of the statutes is amended to read:
SB55-SSA1-CA1,311,5
149.45 (47) (c) The biennial fee for the certification required under par. (b) of an
2adult day care center is $89, plus a biennial fee of $17.80 per client, based on the
3number of clients that the adult day care center is certified to serve
$100. Fees
4collected under this paragraph shall be credited to the appropriation account under
5s. 20.435 (6) (jm).
SB55-SSA1-CA1, s. 1791i 6Section 1791i. 49.45 (47) (d) of the statutes is repealed.".
SB55-SSA1-CA1,311,7 7961. Page 632, line 4: after that line insert:
SB55-SSA1-CA1,311,8 8" Section 1799f. 49.46 (1) (a) 5m. of the statutes is created to read:
SB55-SSA1-CA1,311,119 49.46 (1) (a) 5m. Any individual who is at least 19 years of age but under 20
10years of age and who, on his or her 18th birthday, was in foster care, or treatment
11foster care placement under ch. 48 or 938, as determined by the department.".
SB55-SSA1-CA1,311,12 12962. Page 646, line 22: after that line insert:
SB55-SSA1-CA1,311,13 13" Section 1838gb. 49.688 of the statutes is created to read:
SB55-SSA1-CA1,311,15 1449.688 Prescription drug assistance for elderly persons. (1) In this
15section:
SB55-SSA1-CA1,311,1616 (a) "Generic name" has the meaning given in s. 450.12 (1) (b).
SB55-SSA1-CA1,311,1817 (b) "Poverty line" means the nonfarm federal poverty line for the continental
18United States, as defined by the federal department of labor under 42 USC 9902 (2).
SB55-SSA1-CA1,311,2219 (c) "Prescription drug" means a prescription drug, as defined in s. 450.01 (20),
20that is included in the drugs specified under s. 49.46 (2) (b) 6. h. and that is
21manufactured by a drug manufacturer that enters into a rebate agreement in force
22under sub. (6).
SB55-SSA1-CA1,311,2323 (d) "Prescription order" has the meaning given in s. 450.01 (21).
SB55-SSA1-CA1,312,4
1(e) "Program payment rate" means the rate of payment made for the identical
2drug specified under s. 49.46 (2) (b) 6. h., plus 5%, plus a dispensing fee that is equal
3to the dispensing fee permitted to be charged for prescription drugs for which
4coverage is provided under s. 49.46 (2) (b) 6. h.
SB55-SSA1-CA1,312,6 5(2) (a) A person to whom all of the following applies is eligible to purchase a
6prescription drug for the amounts specified in sub. (5) (a) 1. and 2.:
SB55-SSA1-CA1,312,77 1. The person is a resident, as defined in s. 27.01 (10) (a), of this state.
SB55-SSA1-CA1,312,88 2. The person is at least 65 years of age.
SB55-SSA1-CA1,312,99 3. The person is not a recipient of medical assistance.
SB55-SSA1-CA1,312,1210 4. The person's annual household income, as determined by the department,
11does not exceed 240% of the federal poverty line for a family the size of the person's
12eligible family.
SB55-SSA1-CA1,312,1313 5. The person pays the program enrollment fee specified in sub. (3) (a).
SB55-SSA1-CA1,312,2014 (b) A person to whom par. (a) 1. to 3. and 5. applies, but whose annual household
15income, as determined by the department, exceeds 240% of the federal poverty line
16for a family the size of the persons' eligible family, is eligible to purchase a
17prescription drug at the amounts specified in sub. (5) (a) 4. only during the remaining
18amount of any 12-month period in which the person has first paid the annual
19deductible specified in sub. (3) (b) 2. a. in purchasing prescription drugs at the retail
20price and has then paid the annual deductible specified in sub. (3) (b) 2. b.
SB55-SSA1-CA1,312,21 21(3) Program participants shall pay all of the following:
SB55-SSA1-CA1,312,2222 (a) For each 12-month benefit period, a program enrollment fee of $20.
SB55-SSA1-CA1,313,223 (b) 1. For each 12-month benefit period, for a person specified in sub. (2) (a),
24a deductible for prescription drugs of $500, except that a person whose annual

1household income, as determined by the department, is 160% or less of the federal
2poverty line for a family the size of the person's eligible family pays no deductible.
SB55-SSA1-CA1,313,43 2. For each 12-month benefit period, for a person specified in sub. (2) (b), a
4deductible for prescription drugs that equals all of the following:
SB55-SSA1-CA1,313,65 a. The difference between the person's annual household income and 240% of
6the federal poverty line for a family the size of the person's eligible family.
SB55-SSA1-CA1,313,77 b. Five hundred dollars.
SB55-SSA1-CA1,313,98 (c) After payment of any applicable deductible under par. (b), all of the
9following:
SB55-SSA1-CA1,313,1010 1. A copayment of $5 for each prescription drug that bears only a generic name.
SB55-SSA1-CA1,313,1211 2. A copayment of $15 for each prescription drug that does not bear only a
12generic name.
SB55-SSA1-CA1,313,1613 (d) Notwithstanding s. 49.002, if a person who is eligible under this section has
14other available coverage for payment of a prescription drug, this section applies only
15to costs for prescription drugs for the persons that are not covered under the person's
16other available coverage.
SB55-SSA1-CA1,313,22 17(4) The department shall devise and distribute a form for application for the
18program under sub. (2), shall determine eligibility for each 12-month benefit period
19of applicants and shall issue to eligible persons a prescription drug card for use in
20purchasing prescription drugs, as specified in sub. (5). The department shall
21promulgate rules that specify the criteria to be used to determine household income
22under sub. (2) (a) 4. and (b) and (3) (b) 1.
SB55-SSA1-CA1,314,3 23(5) (a) Beginning on September 1, 2002, except as provided in sub. (7) (b), as
24a condition of participation by a pharmacy or pharmacist in the program under s.
2549.45, 49.46, or 49.47, the pharmacy or pharmacist may not charge a person who

1presents a valid prescription order and a card indicating that he or she meets
2eligibility requirements under sub. (2) an amount for a prescription drug under the
3order that exceeds the following:
SB55-SSA1-CA1,314,54 1. For a deductible, as specified in sub. (3) (b) 1. and 2. b., the program payment
5rate.
SB55-SSA1-CA1,314,86 2. After any applicable deductible under subd. 1. is charged, the copayment, as
7applicable, that is specified in sub. (3) (c) 1. or 2. No dispensing fee may be charged
8to a person under this subdivision.
SB55-SSA1-CA1,314,99 3. For a deductible, as specified in sub. (3) (b) 2. a., the retail price.
SB55-SSA1-CA1,314,1210 4. After the deductible under subd. 3. is charged, the copayment, as applicable,
11that is specified in sub. (3) (c) 1. or 2. No dispensing fee may be charged to a person
12under this subdivision.
SB55-SSA1-CA1,314,1613 (b) The department shall calculate and transmit to pharmacies and
14pharmacists that are certified providers of medical assistance amounts that may be
15used in calculating charges under par. (a). The department shall periodically update
16this information and transmit the updated amounts to pharmacies and pharmacists.
SB55-SSA1-CA1,314,22 17(6) The department, or an entity with which the department contracts, shall
18provide to a drug manufacturer that sells drugs for prescribed use in this state
19documents designed for use by the manufacturer in entering into a rebate agreement
20with the department or entity that is modeled on the rebate agreement specified
21under 42 USC 1396r-8. A rebate agreement under this subsection shall include all
22of the following as requirements:
SB55-SSA1-CA1,315,323 (a) That, except as provided in sub. (7) (b), the manufacturer shall make rebate
24payments for each prescription drug of the manufacturer that is prescribed for and
25purchased by persons who meet criteria under sub. (2) (a) and persons who meet

1criteria under sub. (2) (b) and have paid the deductible under sub. (3) (b) 2. a., to the
2state treasurer to be credited to the appropriation account under s. 20.435 (4) (j), each
3calendar quarter or according to a schedule established by the department.
SB55-SSA1-CA1,315,54 (b) That, except as provided in sub. (7) (b), the amount of the rebate payment
5shall be determined by a method specified in 42 USC 1396r-8 (c).
SB55-SSA1-CA1,315,22 6(7) (a) Except as provided in par. (b), from the appropriation accounts under
7s. 20.435 (4) (bv) and (j), beginning on September 1, 2002, the department shall,
8under a schedule that is identical to that used by the department for payment of
9pharmacy provider claims under medical assistance, provide to pharmacies and
10pharmacists payments for prescription drugs sold by the pharmacies or pharmacists
11to persons eligible under sub. (2) who have paid the deductible specified under sub.
12(3) (b) 1. or 2. or who, under sub. (3) (b) 1., are not required to pay a deductible. The
13payment for each prescription drug under this paragraph shall be at the program
14payment rate, minus any copayment paid by the person under sub. (5) (a) 2. or 4., and
15plus, if applicable, incentive payments that are similar to those provided under s.
1649.45 (8v). The department shall devise and distribute a claim form for use by
17pharmacies and pharmacists under this paragraph and may limit payment under
18this paragraph to those prescription drugs for which payment claims are submitted
19by pharmacists or pharmacies directly to the department. The department may
20apply to the program under this section the same utilization and cost control
21procedures that apply under rules promulgated by the department to medical
22assistance under subch. IV of ch. 49.
SB55-SSA1-CA1,316,423 (b) During any period in which funding under s. 20.435 (4) (bv) is completely
24expended for the payments specified in par. (a), the requirements of par. (a) and subs.
25(3) (c), (5), and (6) (a) and (b) do not apply to drugs purchased during that period, but

1the department shall continue to accept applications and determine eligibility under
2sub. (4) and shall indicate to applicants that the eligibility of program participants
3to purchase prescription drugs as specified in sub. (3), under the requirements of sub.
4(5), is conditioned on the availability of funding under s. 20.435 (4) (bv).
SB55-SSA1-CA1,316,11 5(8) The department shall, under methods promulgated by the department by
6rule, monitor compliance by pharmacies and pharmacists that are certified providers
7of medical assistance with the requirements of sub. (5) and shall annually report to
8the legislature under s. 13.172 (2) concerning the compliance. The report shall
9include information on any pharmacies or pharmacists that discontinue
10participation as certified providers of medical assistance and the reasons given for
11the discontinuance.
SB55-SSA1-CA1,316,13 12(9) (a) The department shall promulgate rules relating to prohibitions on fraud
13that are substantially similar to applicable provisions under s. 49.49 (1) (a).
SB55-SSA1-CA1,316,1714 (b) A person who is convicted of violating a rule promulgated by the department
15under par. (a) in connection with that person's furnishing of prescription drugs under
16this section may be fined not more than $25,000, or imprisoned for not more than 7
17years and 6 months, or both.
SB55-SSA1-CA1,316,2018 (c) A person other than a person specified in par. (b) who is convicted of violating
19a rule promulgated by the department under par. (a) may be fined not more than
20$10,000, or imprisoned for not more than one year, or both.
SB55-SSA1-CA1,317,2 21(10) If federal law is amended to provide coverage for prescription drugs for
22outpatient care as a benefit under medicare or to provide similar coverage under
23another program, the department shall submit to appropriate standing committees
24of the legislature under s. 13.172 (3) a report that contains an analysis of the

1differences between such a federal program and the program under this section and
2that provides recommendations concerning alignment, if any, of the differences.
SB55-SSA1-CA1,317,12 3(11) The department shall request from the federal secretary of health and
4human services a waiver, under 42 USC 1315 (a), of federal medicaid laws necessary
5to permit the department of health and family services to conduct a project, under
6all of the requirements of this section, to expand eligibility for medical assistance,
7for purposes of receipt of prescription drugs as a benefit, to include individuals who
8are eligible under sub. (2). The department may implement a waiver requested
9under this subsection only if the conditions of the waiver are consistent with the
10requirements of this section. The department shall implement the program under
11this section regardless of whether a waiver, as specified in this subsection, is
12received.
SB55-SSA1-CA1,317,16 13(12) Except as provided in subs. (8) to (11) and except for the department's
14rule-making requirements and authority, the department may enter into a contract
15with an entity to perform the duties and exercise the powers of the department under
16this section.".
SB55-SSA1-CA1,317,17 17963. Page 648, line 12: after that line insert:
SB55-SSA1-CA1,317,18 18" Section 1838w. 49.85 (2) (a) of the statutes is amended to read:
SB55-SSA1-CA1,318,219 49.85 (2) (a) At least annually, the department of health and family services
20shall certify to the department of revenue the amounts that, based on the
21notifications received under sub. (1) and on other information received by the
22department of health and family services, the department of health and family
23services has determined that it may recover under s. 49.45 (2) (a) 10. or 49.497, except
24that the department of health and family services may not certify an amount under

1this subsection unless it has met the notice requirements under sub. (3) and unless
2its determination has either not been appealed or is no longer under appeal.".
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