AB100-engrossed, s. 1114 10Section 1114. 49.197 (1m) of the statutes is amended to read:
AB100-engrossed,504,311 49.197 (1m) Fraud investigation. From the appropriations under s. 20.445 (3)
12(dz), (kx), (L), (md), (n), and (nL), the department shall establish a program to
13investigate suspected fraudulent activity on the part of recipients of aid to families
14with dependent children under s. 49.19, on the part of participants in the Wisconsin
15works Works program under ss. 49.141 to 49.161, and, if the department of health
16and family services contracts with the department under sub. (5), on the part of
17recipients of medical assistance under subch. IV and, food stamp benefits under the
18food stamp program under 7 USC 2011 to 2036, supplemental security income
19payments under s. 49.77, payments for the support of children of supplemental
20security income recipients under s. 49.775, and health care benefits under the
21Badger Care health care program under s. 49.665
. The department's activities under
22this subsection may include, but are not limited to, comparisons of information
23provided to the department by an applicant and information provided by the
24applicant to other federal, state, and local agencies, development of an advisory
25welfare investigation prosecution standard, and provision of funds to county

1departments under ss. 46.215, 46.22, and 46.23 and to Wisconsin works Works
2agencies to encourage activities to detect fraud. The department shall cooperate
3with district attorneys regarding fraud prosecutions.
AB100-engrossed, s. 1115 4Section 1115. 49.197 (3) of the statutes is amended to read:
AB100-engrossed,504,125 49.197 (3) State error reduction activities. The department shall conduct
6activities to reduce payment errors in Wisconsin works Works under ss. 49.141 to
749.161 and, if the department of health and family services contracts with the
8department under sub. (5), the medical assistance Medical Assistance program
9under subch. IV and, the food stamp program under 7 USC 2011 to 2036, the
10supplemental security income payments program under s. 49.77, the program
11providing payments for the support of children of supplemental security income
12recipients under s. 49.775, and the Badger Care health care program under s. 49.665
.
AB100-engrossed, s. 1116 13Section 1116. 49.197 (4) of the statutes is amended to read:
AB100-engrossed,504,2314 49.197 (4) County and tribal error reduction. If the department of health and
15family services contracts with the department under sub. (5), the department shall
16provide funds from the appropriation under s. 20.445 (3) (kx) to counties and
17governing bodies of federally recognized American Indian tribes administering
18medical assistance Medical Assistance under subch. IV or, the food stamp program
19under 7 USC 2011 to 2036, the supplemental security income payments program
20under s. 49.77, the program providing payments for the support of children of
21supplemental security income recipients under s. 49.775, and the Badger Care
22health care program under s. 49.665
to offset administrative costs of reducing
23payment errors in those programs.
AB100-engrossed, s. 1117 24Section 1117. 49.197 (5) of the statutes is amended to read:
AB100-engrossed,505,14
149.197 (5) Contracts for medical assistance and, food stamps , supplemental
2security income, and caretaker supplement
. The Notwithstanding s. 49.845 (1) and
3(2), the
department of health and family services may contract with the department
4to investigate suspected fraudulent activity on the part of recipients of medical
5assistance under subch. IV or recipients of, food stamp benefits under the food stamp
6program under 7 USC 2011 to 2036, supplemental security income payments under
7s. 49.77, payments for the support of children of supplemental security income
8recipients under s. 49.775, and health care benefits under the Badger Care health
9care program under s. 49.665 and to conduct activities to reduce payment errors in
10the Medical Assistance program under subch. IV, the food stamp program under 7
11USC 2011
to 2036, the supplemental security income payments program under s.
1249.77, the program providing payments for the support of children of supplemental
13security income recipients under s. 49.775, and the Badger Care health care program
14under s. 49.665,
as provided in this section.
AB100-engrossed, s. 1118 15Section 1118. 49.22 (1) of the statutes is amended to read:
AB100-engrossed,506,516 49.22 (1) There is created a child and spousal support and establishment of
17paternity and medical liability support liability program in the department. The
18purpose of this program is to establish paternity when possible, to establish or modify
19support obligations, to enforce support obligations owed by parents to their children
20and maintenance obligations owed to spouses or former spouses with whom the
21children reside in this state or owed in other states if the support order was issued
22in this state or owed in other states if the parent, spouse, or former spouse resides
23in this state, to locate persons who are alleged to have taken their child in violation
24of s. 948.31 or of similar laws in other states, and to locate and value property of any
25person having a support duty. To accomplish the objectives of this program and of

1other assistance programs under this chapter, county and state agencies will
2cooperate with one another to implement a child and spousal support and paternity
3establishment and medical support liability program in accordance with state and
4federal laws, regulations, and rules and to assure proper distribution of benefits of
5all assistance programs authorized under this chapter.
AB100-engrossed, s. 1119 6Section 1119. 49.36 (2) of the statutes is amended to read:
AB100-engrossed,506,157 49.36 (2) The department may contract with any county, tribal governing body,
8or Wisconsin works Works agency to administer a work experience and job training
9program for parents who are not custodial parents and who fail to pay child support
10or to meet their children's needs for support as a result of unemployment or
11underemployment. The program may provide the kinds of work experience and job
12training services available from the program under s. 49.193, 1997 stats., or s. 49.147
13(3) or (4). The program may also include job search and job orientation activities.
14The department shall fund the program from the appropriation appropriations
15under s. 20.445 (3) (dz) and (k).
AB100-engrossed, s. 1120 16Section 1120. 49.45 (2) (a) 3m. of the statutes is repealed.
AB100-engrossed, s. 1124 17Section 1124. 49.45 (3) (i) of the statutes is repealed.
AB100-engrossed, s. 1124g 18Section 1124g. 49.45 (3) (m) of the statutes is created to read:
AB100-engrossed,506,2219 49.45 (3) (m) Reimbursement for services provided by a health maintenance
20organization, as defined in s. 609.01 (2), with a contract under sub. (2) (b) 2. to provide
21health care to recipients of Medical Assistance or Badger Care, shall be made under
22capitation rates that are actuarially sound.
AB100-engrossed, s. 1125s 23Section 1125s. 49.45 (6m) (a) 6. of the statutes is created to read:
AB100-engrossed,507,224 49.45 (6m) (a) 6. "Resource Utilization Groupings III" means a comparative
25resource utilization grouping that classifies each facility resident based on

1information obtained from performing, for the resident, a minimum data set
2assessment developed by the federal Centers for Medicare and Medicaid Services.
AB100-engrossed, s. 1128m 3Section 1128m. 49.45 (6m) (ag) 3p. of the statutes is created to read:
AB100-engrossed,507,54 49.45 (6m) (ag) 3p. For all costs specified under par. (am) 1. bm., an
5acuity-based payment rate system to which all of the following applies:
AB100-engrossed,507,86 a. The system shall incorporate acuity measurements under the most recent
7Resource Utilization Groupings III methodology to determine factors for case-mix
8adjustment.
AB100-engrossed,507,129 b. Four times annually, for each facility resident who is a Medical Assistance
10recipient on March 31, June 30, September 30, or December 31, as applicable, the
11system shall determine the average case-mix index by use of the factors specified
12under subd. 3p. a.
AB100-engrossed,507,1413 c. The system shall incorporate payment adjustments for dementia, behavioral
14needs, or other complex medical conditions.
AB100-engrossed,507,1515 d. The system may include incentives for providing high quality of care.
AB100-engrossed,507,1816 e. The system shall identify the extent to which payment is made to facilities,
17under the system, for facilities' direct care nursing costs allowable under Medical
18Assistance.
AB100-engrossed, s. 1132f 19Section 1132f. 49.45 (6m) (m) of the statutes is created to read:
AB100-engrossed,507,2220 49.45 (6m) (m) The department may not use the criteria for functional
21eligibility specified in s. 46.286 (1) (a) to determine rates of payment to facilities
22under this subsection.
AB100-engrossed, s. 1133 23Section 1133. 49.45 (6t) of the statutes, as affected by 2003 Wisconsin Act 318,
24is repealed.
AB100-engrossed, s. 1135c 25Section 1135c. 49.45 (6x) (title) of the statutes is amended to read:
AB100-engrossed,508,1
149.45 (6x) (title) Funding for essential access city hospital hospitals.
AB100-engrossed, s. 1135d 2Section 1135d. 49.45 (6x) (a) of the statutes is amended to read:
AB100-engrossed,508,83 49.45 (6x) (a) Notwithstanding sub. (3) (e), from the appropriation accounts
4under s. 20.435 (4) (b), (gp), (o), and (w), the department shall distribute not more
5than $4,748,000 in each fiscal year, to provide funds to an essential access city
6hospital hospitals, except that the department may not allocate funds to an essential
7access city hospital to the extent that the allocation would exceed any limitation
8under 42 USC 1396b (i) (3).
AB100-engrossed, s. 1135e 9Section 1135e. 49.45 (6x) (b) of the statutes is amended to read:
AB100-engrossed,508,1810 49.45 (6x) (b) The department shall develop procedures for solicitation and
11review of requests for funds and a method to distribute the funds under par. (a) to
12an individual hospital hospitals that shall include establishment of criteria for the
13designation as an essential access city hospital. Beginning on July 1, 2007, the
14criteria established by the department may not include reference to criteria that
15were required to have been met during July 1, 1995, to June 30, 1996, but shall
16include the requirement that more than 30 percent of a hospital's total inpatient days
17are reimbursable under Medical Assistance. No hospital that qualifies for a Medical
18Assistance pediatric inpatient supplement is eligible for funds under this subsection.
AB100-engrossed, s. 1144p 19Section 1144p. 49.45 (18) (ag) 1. of the statutes is amended to read:
AB100-engrossed,508,2120 49.45 (18) (ag) 1. A copayment of $1 $3 for each prescription of a drug that bears
21only a generic name, as defined in s. 450.12 (1) (b).
AB100-engrossed, s. 1146j 22Section 1146j. 49.45 (27) of the statutes is amended to read:
AB100-engrossed,509,223 49.45 (27) Eligibility of aliens. A person who is not a U.S. citizen or an alien
24lawfully admitted for permanent residence or otherwise permanently residing in the

1United States under color of law may not receive medical assistance benefits except
2as provided under 8 USC 1255a (h) (3) or 42 USC 1396b (v), subject to s. 49.46 (2) (f).
AB100-engrossed, s. 1147 3Section 1147. 49.45 (39) (b) 1. of the statutes is amended to read:
AB100-engrossed,510,114 49.45 (39) (b) 1. `Payment for school medical services.' If a school district or a
5cooperative educational service agency elects to provide school medical services and
6meets all requirements under par. (c), the department shall reimburse the school
7district or the cooperative educational service agency for 60% of the federal share of
8allowable charges for the school medical services that it provides and, as specified
9in subd. 2., for allowable administrative costs. If the Wisconsin Center for the Blind
10and Visually Impaired or the Wisconsin Educational Services Program for the Deaf
11and Hard of Hearing elects to provide school medical services and meets all
12requirements under par. (c), the department shall reimburse the department of
13public instruction for 60% of the federal share of allowable charges for the school
14medical services that the Wisconsin Center for the Blind and Visually Impaired or
15the Wisconsin Educational Services Program for the Deaf and Hard of Hearing
16provides and, as specified in subd. 2., for allowable administrative costs. A school
17district, cooperative educational service agency, the Wisconsin Center for the Blind
18and Visually Impaired or the Wisconsin Educational Services Program for the Deaf
19and Hard of Hearing may submit, and the department shall allow, claims for common
20carrier transportation costs as a school medical service unless the department
21receives notice from the federal health care financing administration that, under a
22change in federal policy, the claims are not allowed. If the department receives the
23notice, a school district, cooperative educational service agency, the Wisconsin
24Center for the Blind and Visually Impaired, or the Wisconsin Educational Services
25Program for the Deaf and Hard of Hearing may submit, and the department shall

1allow, unreimbursed claims for common carrier transportation costs incurred before
2the date of the change in federal policy. The department shall promulgate rules
3establishing a methodology for making reimbursements under this paragraph.
4Except as provided in subd. 1m., all All other expenses for the school medical services
5provided by a school district or a cooperative educational service agency shall be paid
6for by the school district or the cooperative educational service agency with funds
7received from state or local taxes. The school district, the Wisconsin Center for the
8Blind and Visually Impaired, the Wisconsin Educational Services Program for the
9Deaf and Hard of Hearing, or the cooperative educational service agency shall
10comply with all requirements of the federal department of health and human
11services for receiving federal financial participation.
AB100-engrossed, s. 1148 12Section 1148. 49.45 (39) (b) 1m. of the statutes is repealed.
AB100-engrossed, s. 1149 13Section 1149. 49.45 (39) (b) 2. of the statutes is amended to read:
AB100-engrossed,510,2314 49.45 (39) (b) 2. `Payment for school medical services administrative costs.' The
15department shall reimburse a school district or a cooperative educational service
16agency specified under subds. subd. 1. and 1m. and shall reimburse the department
17of public instruction on behalf of the Wisconsin Center for the Blind and Visually
18Impaired or the Wisconsin Educational Services Program for the Deaf and Hard of
19Hearing for 90% of the federal share of allowable administrative costs, using time
20studies, beginning in fiscal year 1999-2000. A school district or a cooperative
21educational service agency may submit, and the department of health and family
22services shall allow, claims for administrative costs incurred during the period that
23is up to 24 months before the date of the claim, if allowable under federal law.
AB100-engrossed, s. 1149f 24Section 1149f. 49.45 (42m) of the statutes is created to read:
AB100-engrossed,511,7
149.45 (42m) Physical and occupational therapy. (a) If, in authorizing the
2provision of physical or occupational therapy services under s. 49.46 (2) (b) 6. b., the
3department authorizes a reduced duration of services from the duration that the
4provider specifies in the authorization request, the department shall substantiate
5the reduction that the department made in the duration of the services if the provider
6of the services requests any additional authorizations for the provision of physical
7or occupational therapy services to the same individual.
AB100-engrossed,511,118 (b) The division of the department that is responsible for health care financing
9shall monitor compliance with the requirement under par. (a) in concert with
10representatives of the Wisconsin Physical Therapy Association and the Wisconsin
11Occupational Therapy Association.
AB100-engrossed, s. 1150 12Section 1150. 49.46 (1) (a) 5. of the statutes is amended to read:
AB100-engrossed,511,1513 49.46 (1) (a) 5. Any child in an adoption assistance, foster care, kinship care,
14long-term kinship care or, treatment foster care, or subsidized guardianship
15placement under ch. 48 or 938, as determined by the department.
AB100-engrossed, s. 1153 16Section 1153. 49.46 (1) (a) 14. of the statutes is amended to read:
AB100-engrossed,511,2217 49.46 (1) (a) 14. Any person who would meet the financial and other eligibility
18requirements for home or community-based services under s. 46.27 (11) or, 46.277,
19or 46.2785
but for the fact that the person engages in substantial gainful activity
20under 42 USC 1382c (a) (3), if a waiver under s. 49.45 (38) is in effect or federal law
21permits federal financial participation for medical assistance coverage of the person
22and if funding is available for the person under s. 46.27 (11) or, 46.277, or 46.2785.
AB100-engrossed, s. 1154 23Section 1154. 49.46 (1) (a) 15. of the statutes is amended to read:
AB100-engrossed,512,3
149.46 (1) (a) 15. Any individual who is infected with tuberculosis and meets the
2income and resource eligibility requirements for the federal supplemental security
3Supplemental Security Income program under 42 USC 1381 to 1383d.
AB100-engrossed, s. 1157 4Section 1157. 49.46 (2) (b) 8. of the statutes is amended to read:
AB100-engrossed,512,85 49.46 (2) (b) 8. Home or community-based services, if provided under s. 46.27
6(11), 46.275, 46.277 or, 46.278, or 46.2785, under the family care benefit if a waiver
7is in effect under s. 46.281 (1) (c), or under a waiver requested under 2001 Wisconsin
8Act 16
, section 9123 (16rs), or 2003 Wisconsin Act 33, section 9124 (8c).
AB100-engrossed, s. 1157j 9Section 1157j. 49.46 (2) (f) of the statutes is amended to read:
AB100-engrossed,512,1410 49.46 (2) (f) Benefits under this subsection or s. 49.45 (27) may not include
11payment for gastric bypass surgery or gastric stapling surgery unless it is performed
12because of a medical emergency
the procedure is required to be covered under federal
13medicaid law, as interpreted by the federal centers for medicare and medicaid
14services
.
AB100-engrossed, s. 1158 15Section 1158. 49.47 (4) (as) 1. of the statutes is amended to read:
AB100-engrossed,512,2016 49.47 (4) (as) 1. The person would meet the financial and other eligibility
17requirements for home or community-based services under s. 46.27 (11) or, 46.277,
18or 46.2785
or under the family care benefit if a waiver is in effect under s. 46.281 (1)
19(c) but for the fact that the person engages in substantial gainful activity under 42
20USC 1382c
(a) (3).
AB100-engrossed, s. 1159 21Section 1159. 49.47 (4) (as) 3. of the statutes is amended to read:
AB100-engrossed,512,2422 49.47 (4) (as) 3. Funding is available for the person under s. 46.27 (11) or,
2346.277, or 46.2785 or under the family care benefit if a waiver is in effect under s.
2446.281 (1) (c).
AB100-engrossed, s. 1167 25Section 1167. 49.497 (title) of the statutes is amended to read:
AB100-engrossed,513,2
149.497 (title) Recovery of incorrect medical assistance Medical
2Assistance or Badger Care
payments.
AB100-engrossed, s. 1168 3Section 1168. 49.497 (1) of the statutes is renumbered 49.497 (1) (a) (intro.)
4and amended to read:
AB100-engrossed,513,75 49.497 (1) (a) (intro.) The department may recover any payment made
6incorrectly for benefits specified under s. 49.46, 49.468 or 49.47 provided under this
7subchapter or s. 49.665
if the incorrect payment results from any of the following:
AB100-engrossed,513,9 81. A misstatement or omission of fact by a person supplying information in an
9application for benefits under s. 49.46, 49.468 or 49.47 this subchapter or s. 49.665.
AB100-engrossed,513,13 102. The department may also recover if a medical assistance failure of a Medical
11Assistance or Badger Care
recipient or any other person responsible for giving
12information on the recipient's behalf fails to report the receipt of income or assets in
13an amount that would have affected the recipient's eligibility for benefits.
AB100-engrossed,513,20 14(b) The department's right of recovery is against any medical assistance
15Medical Assistance or Badger Care recipient to whom or on whose behalf the
16incorrect payment was made. The extent of recovery is limited to the amount of the
17benefits incorrectly granted. The county department under s. 46.215 or 46.22 or the
18governing body of a federally recognized American Indian tribe administering
19medical assistance Medical Assistance or Badger Care shall begin recovery actions
20on behalf of the department according to rules promulgated by the department.
AB100-engrossed, s. 1169 21Section 1169. 49.497 (1) (a) 3. of the statutes is created to read:
AB100-engrossed,514,222 49.497 (1) (a) 3. The failure of a Medical Assistance or Badger Care recipient
23or any other person responsible for giving information on the recipient's behalf to
24report any change in the recipient's financial or nonfinancial situation or eligibility

1characteristics that would have affected the recipient's eligibility for benefits or the
2recipient's cost-sharing requirements.
AB100-engrossed, s. 1170 3Section 1170. 49.497 (1m) of the statutes is created to read:
AB100-engrossed,514,134 49.497 (1m) (a) If, after notice that an incorrect payment was made, a recipient,
5or parent of a minor recipient, who is liable for repayment of an incorrect payment
6fails to repay the incorrect payment or enter into, or comply with, an agreement for
7repayment, the department may bring an action to enforce the liability or may issue
8an order to compel payment of the liability. Any person aggrieved by an order issued
9by the department under this paragraph may appeal the order as a contested case
10under ch. 227 by filing with the department a request for a hearing within 30 days
11after the date of the order. The only issue at hearing shall be the determination by
12the department that the person has not repaid the incorrect payment or entered into,
13or complied with, an agreement for repayment.
AB100-engrossed,514,2314 (b) If any recipient, or parent of a minor recipient, named in an order to compel
15payment issued under par. (a) fails to pay the department any amount due under the
16terms of the order and no contested case to review the order is pending and the time
17for filing for a contested case review has expired, the department may present a
18certified copy of the order to the circuit court for any county. The sworn statement
19of the secretary shall be evidence of the incorrect payment. The circuit court shall,
20without notice, render judgment in accordance with the order. A judgment rendered
21under this paragraph shall have the same effect and shall be entered in the judgment
22and lien docket and may be enforced in the same manner as if the judgment had been
23rendered in an action tried and determined by the circuit court.
AB100-engrossed,514,2524 (c) The recovery procedure under this subsection is in addition to any other
25recovery procedure authorized by law.
AB100-engrossed, s. 1171
1Section 1171. 49.497 (2) of the statutes is amended to read:
AB100-engrossed,515,52 49.497 (2) A county or governing body of a federally recognized American
3Indian tribe may retain 15% of benefits distributed under s. 49.46, 49.468 or 49.47
4provided under this subchapter or s. 49.665 that are recovered under sub. (1) this
5section
due to the efforts of an employee or officer of the county or tribe.
AB100-engrossed, s. 1172 6Section 1172. 49.497 (4) of the statutes is created to read:
AB100-engrossed,515,107 49.497 (4) The department may appear for the state in any and all collection
8matters under this section, and may commence suit in the name of the department
9to recover an incorrect payment from the recipient to whom or on whose behalf it was
10made.
AB100-engrossed, s. 1173 11Section 1173. 49.497 (5) of the statutes is created to read:
AB100-engrossed,515,1412 49.497 (5) The department may make an agreement with a recipient, or parent
13of a minor recipient, who is liable under sub. (1), providing for repayment of an
14incorrect payment at a specified rate or amount.
AB100-engrossed, s. 1174 15Section 1174. 49.665 (1) (b) of the statutes is amended to read:
AB100-engrossed,515,1716 49.665 (1) (b) "Child" means a person who is born and who is under the age of
1719.
AB100-engrossed, s. 1175 18Section 1175. 49.665 (1) (g) of the statutes is created to read:
AB100-engrossed,515,2019 49.665 (1) (g) "Unborn child" means a person from the time of conception until
20it is born alive.
AB100-engrossed, s. 1176 21Section 1176. 49.665 (2) (a) of the statutes is renumbered 49.665 (2) (a) 1. and
22amended to read:
AB100-engrossed,516,823 49.665 (2) (a) 1. The department of health and family services shall request a
24waiver from the secretary of the federal department of health and human services
25to permit the department of health and family services to implement, beginning not

1later than July 1, 1998, or the effective date of the waiver, whichever is later, a health
2care program under this section. If a waiver that is consistent with all of the
3provisions of this section, excluding sub. (4) (a) 3m. and (ap) and provisions related
4to sub. (4) (ap)
, is granted and in effect, the department of health and family services
5shall implement the program under this section, subject to subd. 2. The department
6of health and family services may not implement the program under this section
7unless a waiver that is consistent with all of the provisions of this section, excluding
8sub. (4) (a) 3m. and (ap) and provisions related to sub. (4) (ap), is granted and in effect.
AB100-engrossed, s. 1177 9Section 1177. 49.665 (2) (a) 2. of the statutes is created to read:
AB100-engrossed,516,1310 49.665 (2) (a) 2. The department may not implement sub. (4) (ap) or provisions
11related to the coverage under sub. (4) (ap) unless a state plan amendment
12authorizing the coverage under sub. (4) (ap) is approved by the federal department
13of health and human services.
AB100-engrossed, s. 1178 14Section 1178. 49.665 (3) of the statutes is amended to read:
AB100-engrossed,517,215 49.665 (3) Administration. The Subject to sub. (2) (a) 2., the department shall
16administer a program to provide the health services and benefits described in s. 49.46
17(2) to persons that meet the eligibility requirements specified in sub. (4). The
18department shall promulgate rules setting forth the application procedures and
19appeal and grievance procedures. The department may promulgate rules limiting
20access to the program under this section to defined enrollment periods. The
21department may also promulgate rules establishing a method by which the
22department may purchase family coverage offered by the employer of a member of
23an eligible family or by of a member of a an eligible child's household , or family or
24individual coverage offered by the employer of an eligible unborn child's mother or
25her spouse,
under circumstances in which the department determines that

1purchasing that coverage would not be more costly than providing the coverage
2under this section.
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