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:
SB45,728,2319 49.45 (6u) (d) If the federal department of health and human services approves
20for state expenditure in a fiscal year amounts under s. 20.435 (5) (4) (o) that result
21in a lesser allocation amount than that allocated under this subsection, allocate not
22more than the lesser amount so approved by the federal department of health and
23human services.
SB45, s. 1408 24Section 1408. 49.45 (6u) (e) of the statutes is amended to read:
SB45,729,5
149.45 (6u) (e) If the federal department of health and human services approves
2for state expenditure in a fiscal year amounts under s. 20.435 (5) (4) (o) that result
3in a lesser allocation amount than that allocated under this subsection, submit a
4revision of the method developed under par. (b) for approval by the joint committee
5on finance in that state fiscal year.
SB45, s. 1409 6Section 1409. 49.45 (6v) (b) of the statutes is amended to read:
SB45,729,127 49.45 (6v) (b) The department shall, each year, submit to the joint committee
8on finance a report for the previous fiscal year, except for the 1997-98 fiscal year, that
9provides information on the utilization of beds by recipients of medical assistance in
10facilities and a discussion and detailed projection of the likely balances,
11expenditures, encumbrances and carry over of currently appropriated amounts in
12the appropriation accounts under s. 20.435 (4) (b) and (o)
.
SB45, s. 1410 13Section 1410. 49.45 (6v) (c) of the statutes is amended to read:
SB45,729,2514 49.45 (6v) (c) If the report specified in par. (b) indicates that utilization of beds
15by recipients of medical assistance in facilities decreased is less than estimates for
16that utilization reflected in the intentions of the joint committee on finance,
17legislature and governor, as expressed by them in the budget determinations
, the
18department shall include a proposal to transfer moneys from the appropriation
19under s. 20.435 (5) (4) (b) to the appropriation under s. 20.435 (7) (bd) for the purpose
20of increasing funding for the community options program under s. 46.27. The
21amount proposed for transfer may not reduce the balance in the appropriation
22account under s. 20.435 (4) (b) below an amount necessary to ensure that that
23appropriation account will end the current fiscal year or the current fiscal biennium
24with a positive balance.
The secretary shall transfer the amount identified under the
25proposal.
SB45, s. 1411
1Section 1411. 49.45 (6w) (intro.) of the statutes is amended to read:
SB45,730,82 49.45 (6w) Hospital operating deficit reduction. (intro.) From the
3appropriation under s. 20.435 (5) (4) (o), for reduction of operating deficits, as defined
4under criteria developed by the department, incurred by a hospital, as defined under
5s. 50.33 (2) (a) and (b), that is operated by the state, established under s. 49.71 or
6owned and operated by a city or village, the department shall allocate up to
7$3,300,000 in each fiscal year to these hospitals, as determined by the department,
8and shall perform all of the following:
SB45, s. 1412 9Section 1412. 49.45 (6w) (d) of the statutes is amended to read:
SB45,730,1410 49.45 (6w) (d) If the federal department of health and human services approves
11for state expenditure in a fiscal year amounts under s. 20.435 (5) (4) (o) that result
12in a lesser allocation amount than that allocated under this subsection or disallows
13use of the allocation of federal medicaid funds under par. (c), reduce allocations under
14this subsection and distribute on a prorated basis, as determined by the department.
SB45, s. 1413 15Section 1413. 49.45 (6x) (a) of the statutes is amended to read:
SB45,730,2016 49.45 (6x) (a) Notwithstanding sub. (3) (e), from the appropriations under s.
1720.435 (5) (4) (b) and (o) the department shall distribute not more than $4,748,000
18in each fiscal year, to provide funds to an essential access city hospital, except that
19the department may not allocate funds to an essential access city hospital to the
20extent that the allocation would exceed any limitation under 42 USC 1396b (i) (3).
SB45, s. 1414 21Section 1414. 49.45 (6x) (d) of the statutes is amended to read:
SB45,731,222 49.45 (6x) (d) If the federal department of health and human services approves
23for state expenditure in any state fiscal year amounts under s. 20.435 (5) (4) (o) that
24result in a lesser distribution amount than that distributed under this subsection or

1disallows use of federal medicaid funds under par. (a), the department of health and
2family services shall reduce the distributions under this subsection.
SB45, s. 1415 3Section 1415. 49.45 (6y) (a) of the statutes is amended to read:
SB45,731,134 49.45 (6y) (a) Notwithstanding sub. (3) (e), from the appropriations under s.
520.435 (5) (4) (b) and (o) the department shall distribute funding in each fiscal year
6to provide supplemental payment to hospitals that enter into a contract under s.
749.02 (2) to provide health care services funded by a relief block grant, as determined
8by the department, for hospital services that are not in excess of the hospitals'
9customary charges for the services, as limited under 42 USC 1396b (i) (3). If no relief
10block grant is awarded under this chapter or if the allocation of funds to such
11hospitals would exceed any limitation under 42 USC 1396b (i) (3), the department
12may distribute funds to hospitals that have not entered into a contract under s. 49.02
13(2).
SB45, s. 1416 14Section 1416. 49.45 (6y) (am) of the statutes is created to read:
SB45,731,2115 49.45 (6y) (am) Notwithstanding sub. (3) (e), from the appropriations under s.
1620.435 (4) (b), (h) and (o) the department shall distribute funding in each fiscal year
17to provide supplemental payments to hospitals that enter into contracts under s.
1849.02 (2) with a county having a population of 500,000 or more to provide health care
19services funded by a relief block grant, as determined by the department, for hospital
20services that are not in excess of the hospitals' customary charges for the services,
21as limited under 42 USC 1396b (i) (3).
SB45, s. 1417 22Section 1417. 49.45 (6y) (b) of the statutes is amended to read:
SB45,731,2523 49.45 (6y) (b) The department need not promulgate as rules under ch. 227 the
24procedures, methods of distribution and criteria required for distribution under par.
25pars. (a) and (am).
SB45, s. 1418
1Section 1418. 49.45 (6z) (a) (intro.) of the statutes is amended to read:
SB45,732,122 49.45 (6z) (a) (intro.) Notwithstanding sub. (3) (e), from the appropriations
3under s. 20.435 (5) (4) (b) and (o) the department shall distribute funding in each
4fiscal year to supplement payment for services to hospitals that enter into a contract
5under s. 49.02 (2) to provide health care services funded by a relief block grant under
6this chapter, if the department determines that the hospitals serve a
7disproportionate number of low-income patients with special needs. If no medical
8relief block grant under this chapter is awarded or if the allocation of funds to such
9hospitals would exceed any limitation under 42 USC 1396b (i) (3), the department
10may distribute funds to hospitals that have not entered into a contract under s. 49.02
11(2). The department may not distribute funds under this subsection to the extent
12that the distribution would do any of the following:
SB45, s. 1419 13Section 1419. 49.45 (8) (b) of the statutes is amended to read:
SB45,732,1814 49.45 (8) (b) Reimbursement under s. 20.435 (5) (4) (b) and (o) for home health
15services provided by a certified home health agency or independent nurse shall be
16made at the home health agency's or nurse's usual and customary fee per patient care
17visit, subject to a maximum allowable fee per patient care visit that is established
18under par. (c).
SB45, s. 1420 19Section 1420. 49.45 (13) (a) of the statutes is amended to read:
SB45,733,520 49.45 (13) (a) The department may require service providers to prepare and
21submit cost reports or financial reports for purposes of rate certification under Title
22XIX of the federal Social Security Act, cost verification, fee schedule determination
23or research and study purposes. These financial reports may include independently
24audited financial statements which shall include, including balance sheets and
25statements of revenues and expenses. The department may withhold

1reimbursement or may decrease or not increase reimbursement rates if a provider
2does not submit the reports required under this paragraph within the period
3specified by the department
or if the costs on which the reimbursement rates are
4based cannot be verified from the provider's cost or financial reports or records from
5which the reports are derived
.
SB45, s. 1421 6Section 1421. 49.45 (13) (b) of the statutes is amended to read:
SB45,733,137 49.45 (13) (b) The In addition to the remedies specified under par. (a), the
8department may require any provider who fails to submit a cost report or financial
9report under par. (a) within the period specified by the department to forfeit not less
10than $10 nor more than $100 for each day the provider fails to submit the report. A
11provider may contest the imposition of a forfeiture under this paragraph by
12submitting a written request for a hearing under s. 227.44 to the department within
1310 days following the date on which the provider received notice of the forfeiture.
SB45, s. 1422 14Section 1422. 49.45 (21) (a) of the statutes is renumbered 49.45 (21) (a) (intro.)
15and amended to read:
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