SB62, s. 30 11Section 30. 25.77 (11) of the statutes is created to read:
SB62,24,1212 25.77 (11) All moneys transferred under s. 50.38 (8).
SB62, s. 31 13Section 31. 25.77 (12) of the statutes is created to read:
SB62,24,1414 25.77 (12) All moneys recouped and deposited under s. 50.38 (6) (a) 4.
SB62, s. 32 15Section 32. 25.772 of the statutes is created to read:
SB62,24,19 1625.772 Hospital assessment fund. There is established a separate
17nonlapsible trust fund designated as the hospital assessment fund, to consist of all
18moneys received under s. 50.38 (2) from assessments on hospitals and all moneys
19recouped and deposited under s. 50.38 (6) (a) 3.
SB62, s. 33 20Section 33. 38.41 (3) (d) of the statutes is created to read:
SB62,24,2321 38.41 (3) (d) Beginning in the 2008-09 school year, the board shall award at
22least $1,000,000 annually under sub. (1) for training in advanced manufacturing
23skills, with priority given to welding.
SB62, s. 34 24Section 34. 46.27 (9) (a) of the statutes is amended to read:
SB62,25,9
146.27 (9) (a) The department may select up to 5 counties that volunteer to
2participate in a pilot project under which they will receive certain funds allocated for
3long-term care. The department shall allocate a level of funds to these counties
4equal to the amount that would otherwise be paid under s. 20.435 (4) (b), (gp), or (w)
5to nursing homes for providing care because of increased utilization of nursing home
6services, as estimated by the department. In estimating these levels, the department
7shall exclude any increased utilization of services provided by state centers for the
8developmentally disabled. The department shall calculate these amounts on a
9calendar year basis under sub. (10).
SB62, s. 35 10Section 35. 46.27 (10) (a) 1. of the statutes is amended to read:
SB62,25,1611 46.27 (10) (a) 1. The department shall determine for each county participating
12in the pilot project under sub. (9) a funding level of state medical assistance
13expenditures to be received by the county. This level shall equal the amount that the
14department determines would otherwise be paid under s. 20.435 (4) (b), (gp), or (w)
15because of increased utilization of nursing home services, as estimated by the
16department.
SB62, s. 36 17Section 36. 46.275 (5) (a) of the statutes is amended to read:
SB62,25,2318 46.275 (5) (a) Medical Assistance reimbursement for services a county, or the
19department under sub. (3r), provides under this program is available from the
20appropriation accounts under s. 20.435 (4) (b), (gp), (o), and (w). If 2 or more counties
21jointly contract to provide services under this program and the department approves
22the contract, Medical Assistance reimbursement is also available for services
23provided jointly by these counties.
SB62, s. 37 24Section 37. 46.275 (5) (c) of the statutes is amended to read:
SB62,26,7
146.275 (5) (c) The total allocation under s. 20.435 (4) (b), (gp), (o), and (w) to
2counties and to the department under sub. (3r) for services provided under this
3section may not exceed the amount approved by the federal department of health and
4human services. A county may use funds received under this section only to provide
5services to persons who meet the requirements under sub. (4) and may not use
6unexpended funds received under this section to serve other developmentally
7disabled persons residing in the county.
SB62, s. 38 8Section 38. 46.283 (5) of the statutes is amended to read:
SB62,26,129 46.283 (5) Funding. From the appropriation accounts under s. 20.435 (4) (b),
10(bm), (gp), (pa), and (w) and (7) (b), (bd), and (md), the department may contract with
11organizations that meet standards under sub. (3) for performance of the duties under
12sub. (4) and shall distribute funds for services provided by resource centers.
SB62, s. 39 13Section 39. 46.284 (5) (a) of the statutes is amended to read:
SB62,26,2014 46.284 (5) (a) From the appropriation accounts under s. 20.435 (4) (b), (g), (gp),
15(im), (o), and (w) and (7) (b), (bd), and (g), the department shall provide funding on
16a capitated payment basis for the provision of services under this section.
17Notwithstanding s. 46.036 (3) and (5m), a care management organization that is
18under contract with the department may expend the funds, consistent with this
19section, including providing payment, on a capitated basis, to providers of services
20under the family care benefit.
SB62, s. 40 21Section 40. 46.485 (2g) (intro.) of the statutes is amended to read:
SB62,27,222 46.485 (2g) (intro.) From the appropriation accounts account under s. 20.435
23(4) (b) and (gp), the department may in each fiscal year transfer funds to the
24appropriation under s. 20.435 (7) (kb) for distribution under this section and from the
25appropriation account under s. 20.435 (7) (mb) the department may not distribute

1more than $1,330,500 in each fiscal year to applying counties in this state that meet
2all of the following requirements, as determined by the department:
SB62, s. 41 3Section 41. 46.513 of the statutes is repealed.
SB62, s. 42 4Section 42. 49.149 (4) of the statutes is repealed.
SB62, s. 43 5Section 43. 49.175 (1) (i) of the statutes is amended to read:
SB62,27,76 49.175 (1) (i) Emergency assistance. For emergency assistance under s. 49.138,
7$6,000,000 in each fiscal year 2007-08 and $7,000,000 in fiscal year 2008-09.
SB62, s. 44 8Section 44. 49.175 (1) (p) of the statutes is amended to read:
SB62,27,119 49.175 (1) (p) Direct child care services. For direct child care services under s.
1049.155, $359,201,800 in fiscal year 2007-08 and $355,352,000 $375,736,400 in fiscal
11year 2008-09.
SB62, s. 45 12Section 45. 49.175 (1) (q) of the statutes is amended to read:
SB62,27,1513 49.175 (1) (q) Child care state administration. For administration of child care
14services under s. 49.155 (1g) (b), $1,765,600 in fiscal year 2007-08 and $1,600,300
15$2,437,800 in fiscal year 2008-09.
SB62, s. 46 16Section 46. 49.45 (2) (a) 17. of the statutes is repealed.
SB62, s. 47 17Section 47. 49.45 (3) (e) 8. of the statutes is repealed.
SB62, s. 48 18Section 48. 49.45 (3) (e) 10m. of the statutes is created to read:
SB62,27,2119 49.45 (3) (e) 10m. All facilities listed in a certificate of approval issued to the
20University of Wisconsin Hospitals and Clinics Authority under s. 50.35 are a hospital
21for purposes of reimbursement under this section.
SB62, s. 49 22Section 49. 49.45 (3) (e) 11. of the statutes is created to read:
SB62,28,823 49.45 (3) (e) 11. The department shall use a portion of the moneys collected
24under s. 50.38 to pay for services provided by eligible hospitals, as defined in s. 50.38
25(1), under the Medical Assistance Program under this subchapter, including services

1reimbursed on a fee-for-service basis and services provided under a managed care
2system. For state fiscal year 2008-09, total payments under this subdivision,
3including both the federal and state share of Medical Assistance, shall equal the
4amount collected under s. 50.38 (2) for fiscal year 2008-09 divided by 57.75 percent.
5For each state fiscal year after state fiscal year 2008-09, total payments under this
6subdivision, including both the federal and state share of Medical Assistance, shall
7equal the amount collected under s. 50.38 (2) for the fiscal year divided by 61.68
8percent.
SB62, s. 50 9Section 50 . 49.45 (5m) (am) of the statutes is amended to read:
SB62,28,1810 49.45 (5m) (am) Notwithstanding sub. (3) (e), from the appropriation accounts
11under s. 20.435 (4) (b), (gp), (o), and (w) and (xc), the department shall distribute not
12more than $2,256,000 $5,000,000 in each fiscal year, to provide supplemental funds
13to rural hospitals that, as determined by the department, have high utilization of
14inpatient services by patients whose care is provided from governmental sources,
15and to provide supplemental funds to critical access hospitals, except that the
16department may not distribute funds to a rural hospital or to a critical access hospital
17to the extent that the distribution would exceed any limitation under 42 USC 1396b
18(i) (3).
SB62, s. 51 19Section 51 . 49.45 (5r) of the statutes is created to read:
SB62,28,2520 49.45 (5r) Supplemental funding for uncompensated care. Notwithstanding
21sub. (3) (e), from the appropriation account under s. 20.435 (4) (w), the department
22shall distribute $3,000,000 in each fiscal year to the University of Wisconsin Hospital
23and Clinics for care that is not otherwise compensated, except that the department
24may not make payments that exceed limitations based on customary charges under
2542 USC 1396b (i) (3).
SB62, s. 52
1Section 52. 49.45 (6m) (ag) (intro.) of the statutes is amended to read:
SB62,29,82 49.45 (6m) (ag) (intro.) Payment for care provided in a facility under this
3subsection made under s. 20.435 (4) (b), (gp), (o), (pa), or (w) shall, except as provided
4in pars. (bg), (bm), and (br), be determined according to a prospective payment
5system updated annually by the department. The payment system shall implement
6standards that are necessary and proper for providing patient care and that meet
7quality and safety standards established under subch. II of ch. 50 and ch. 150. The
8payment system shall reflect all of the following:
SB62, s. 53 9Section 53. 49.45 (6v) (b) of the statutes is amended to read:
SB62,29,1510 49.45 (6v) (b) The department shall, each year, submit to the joint committee
11on finance a report for the previous fiscal year, except for the 1997-98 fiscal year, that
12provides information on the utilization of beds by recipients of medical assistance in
13facilities and a discussion and detailed projection of the likely balances,
14expenditures, encumbrances and carry over of currently appropriated amounts in
15the appropriation accounts under s. 20.435 (4) (b), (gp), and (o).
SB62, s. 54 16Section 54. 49.45 (6x) (a) of the statutes is amended to read:
SB62,29,2217 49.45 (6x) (a) Notwithstanding sub. (3) (e), from the appropriation accounts
18under s. 20.435 (4) (b), (gp), (o), and (w), the department shall distribute not more
19than $4,748,000 in each fiscal year, to provide funds to an essential access city
20hospital, except that the department may not allocate funds to an essential access
21city hospital to the extent that the allocation would exceed any limitation under 42
22USC 1396b
(i) (3).
SB62, s. 55 23Section 55 . 49.45 (6y) (a) of the statutes is amended to read:
SB62,30,824 49.45 (6y) (a) Notwithstanding sub. (3) (e), from the appropriation accounts
25under s. 20.435 (4) (b), (gp), (o), and (w), the department shall may distribute funding

1in each fiscal year to provide supplemental payment to hospitals that enter into a
2contract under s. 49.02 (2) to provide health care services funded by a relief block
3grant, as determined by the department, for hospital services that are not in excess
4of the hospitals' customary charges for the services, as limited under 42 USC 1396b
5(i) (3). If no relief block grant is awarded under this chapter or if the allocation of
6funds to such hospitals would exceed any limitation under 42 USC 1396b (i) (3), the
7department may distribute funds to hospitals that have not entered into a contract
8under s. 49.02 (2).
SB62, s. 56 9Section 56. 49.45 (6y) (am) of the statutes is amended to read:
SB62,30,1610 49.45 (6y) (am) Notwithstanding sub. (3) (e), from the appropriation accounts
11under s. 20.435 (4) (b), (h), (gp), (o), and (w), the department shall distribute funding
12in each fiscal year to provide supplemental payments to hospitals that enter into
13contracts under s. 49.02 (2) with a county having a population of 500,000 or more to
14provide health care services funded by a relief block grant, as determined by the
15department, for hospital services that are not in excess of the hospitals' customary
16charges for the services, as limited under 42 USC 1396b (i) (3).
SB62, s. 57 17Section 57. 49.45 (6y) (ap) of the statutes is created to read:
SB62,30,2318 49.45 (6y) (ap) Notwithstanding sub. (3) (e), from the appropriation accounts
19under s. 20.435 (4) (o) and (xc), the department shall distribute not more than
20$8,000,000 in each fiscal year as supplemental payments to hospitals that satisfy the
21criteria established by the American College of Surgeons for classification as a Level
22I adult trauma center, except that the department may not make payments that
23exceed limitations based on customary charges under 42 USC 1396b (i) (3).
SB62, s. 58 24Section 58 . 49.45 (6y) (ar) of the statutes is created to read:
SB62,31,5
149.45 (6y) (ar) Notwithstanding sub. (3) (e), the department may, from the
2appropriation account under s. 20.435 (4) (xc), make supplemental payments to
3hospitals based on hospital performance, in accordance with a payment methodology
4developed by the department, except that the department may not make payments
5that exceed limitations based on customary charges under 42 USC 1396b (i) (3).
SB62, s. 59 6Section 59. 49.45 (6z) (a) (intro.) of the statutes is amended to read:
SB62,31,187 49.45 (6z) (a) (intro.) Notwithstanding sub. (3) (e), from the appropriation
8accounts under s. 20.435 (4) (b), (gp), (o), and (w), the department may distribute
9funding in each fiscal year to supplement payment for services to hospitals that enter
10into indigent care agreements, in accordance with the approved state plan for
11services under 42 USC 1396a, with relief agencies that administer the medical relief
12block grant under this chapter, if the department determines that the hospitals serve
13a disproportionate number of low-income patients with special needs. If no medical
14relief block grant under this chapter is awarded or if the allocation of funds to such
15hospitals would exceed any limitation under 42 USC 1396b (i) (3), the department
16may distribute funds to hospitals that have not entered into indigent care
17agreements. The department may not distribute funds under this subsection to the
18extent that the distribution would do any of the following:
SB62, s. 60 19Section 60. 49.45 (8) (b) of the statutes is amended to read:
SB62,31,2420 49.45 (8) (b) Reimbursement under s. 20.435 (4) (b), (gp), (o), and (w) for home
21health services provided by a certified home health agency or independent nurse
22shall be made at the home health agency's or nurse's usual and customary fee per
23patient care visit, subject to a maximum allowable fee per patient care visit that is
24established under par. (c).
SB62, s. 61 25Section 61. 49.45 (24m) (intro.) of the statutes is amended to read:
SB62,32,5
149.45 (24m) (intro.) From the appropriation accounts under s. 20.435 (4) (b),
2(gp), (o), and (w), in order to test the feasibility of instituting a system of
3reimbursement for providers of home health care and personal care services for
4medical assistance recipients that is based on competitive bidding, the department
5shall:
SB62, s. 62 6Section 62. 49.45 (52) of the statutes is amended to read:
SB62,32,167 49.45 (52) Payment adjustments. Beginning on January 1, 2003, the
8department may, from the appropriation account under s. 20.435 (7) (b), make
9Medical Assistance payment adjustments to county departments under s. 46.215,
1046.22, 46.23, or 51.42, or 51.437 or to local health departments, as defined in s. 250.01
11(4), as appropriate, for covered services under s. 49.46 (2) (a) 2. and 4. d. and f. and
12(b) 6. b., c., f., fm., g., j., k., L., Lm., and m., 9., 12., 12m., 13., 15., and 16. Payment
13adjustments under this subsection shall include the state share of the payments.
14The total of any payment adjustments under this subsection and Medical Assistance
15payments made from appropriation accounts under s. 20.435 (4) (b), (gp), (o), and (w),
16may not exceed applicable limitations on payments under 42 USC 1396a (a) (30) (A).
SB62, s. 63 17Section 63. 49.45 (59) of the statutes is created to read:
SB62,32,2218 49.45 (59) Health maintenance organization payments to hospitals. (a) The
19department shall, from the appropriation account under s. 20.435 (4) (xc), pay each
20health maintenance organization with which it contracts to provide medical
21assistance a monthly amount that the health maintenance organization shall use to
22make payments to hospitals under par. (b).
SB62,33,1023 (b) Health maintenance organizations shall pay all of the moneys they receive
24under par. (a) to eligible hospitals, as defined in s. 50.38 (1), within 15 days after
25receiving the moneys. The department shall specify in contracts with health

1maintenance organizations to provide medical assistance a method that health
2maintenance organizations shall use to allocate the amounts received under par. (a)
3among eligible hospitals based on the number of discharges from inpatient stays and
4the number of outpatient visits for which the health maintenance organization paid
5such a hospital in the previous month for enrollees who are recipients of medical
6assistance, except enrollees who receive medical assistance under s. 49.45 (23).
7Payments under this paragraph shall be in addition to any amount that a health
8maintenance organization is required by agreement between the health
9maintenance organization and a hospital to pay the hospital for providing services
10to the health maintenance organization's enrollees.
SB62,33,1411 (c) Each health maintenance organization that provides medical assistance
12shall report to the department each month the amount it paid each hospital under
13par. (b) and the percentage of the total payments it made under par. (b) that it paid
14to each hospital.
SB62,33,1915 (d) Each health maintenance organization that provides medical assistance
16shall report monthly to each hospital to which the health maintenance organization
17makes payments under par. (b) such information regarding the payments that the
18department specifies in its contract with the health maintenance organization to
19provide medical assistance.
SB62,33,2320 (e) 1. If the department determines that a health maintenance organization
21has not complied with a requirement under pars. (b) to (d), the department shall
22order the health maintenance organization to comply with the requirement within
2315 days after the department's determination of noncompliance.
SB62,34,3
12. The department may terminate a contract with a health maintenance
2organization to provide medical assistance if the health maintenance organization
3fails to comply with a requirement under pars. (b) to (d).
SB62,34,64 3. The department may audit a health maintenance organization to determine
5whether the health maintenance organization has complied with the requirements
6under pars. (b) to (d).
SB62,34,117 (f) The department shall specify in contracts with health maintenance
8organizations to provide medical assistance the method for adjusting payments
9under par. (b) to correct a health maintenance organization's inaccurate counting of
10inpatient discharges or outpatient visits in calculating a monthly payment to a
11hospital under par. (b).
SB62,34,2012 (g) If a health maintenance organization and hospital do not agree on the
13amount of a monthly payment that the health maintenance organization is required
14to pay the hospital under par. (b), either the health maintenance organization or the
15hospital, within 6 months after the first day of the month in which the payment is
16due, may request that the department determine the amount of the payment. The
17department shall determine the amount of the payment within 60 days after the
18request for a determination is made. The health maintenance organization or
19hospital is, upon request, entitled to a contested case hearing under ch. 227 on the
20department's determination.
SB62, s. 64 21Section 64. 49.472 (6) (a) of the statutes is amended to read:
SB62,35,222 49.472 (6) (a) Notwithstanding sub. (4) (a) 3., from the appropriation account
23under s. 20.435 (4) (b), (gp), or (w), the department shall, on the part of an individual
24who is eligible for medical assistance under sub. (3), pay premiums for or purchase
25individual coverage offered by the individual's employer if the department

1determines that paying the premiums for or purchasing the coverage will not be more
2costly than providing medical assistance.
SB62, s. 65 3Section 65. 49.472 (6) (b) of the statutes is amended to read:
SB62,35,74 49.472 (6) (b) If federal financial participation is available, from the
5appropriation account under s. 20.435 (4) (b), (gp), or (w), the department may pay
6medicare Part A and Part B premiums for individuals who are eligible for medicare
7and for medical assistance under sub. (3).
SB62, s. 66 8Section 66. 49.473 (5) of the statutes is amended to read:
SB62,35,139 49.473 (5) The department shall audit and pay, from the appropriation
10accounts under s. 20.435 (4) (b), (gp), and (o), allowable charges to a provider who is
11certified under s. 49.45 (2) (a) 11. for medical assistance on behalf of a woman who
12meets the requirements under sub. (2) for all benefits and services specified under
13s. 49.46 (2).
SB62, s. 67 14Section 67. 49.857 (1) (d) 12. of the statutes is amended to read:
SB62,35,1715 49.857 (1) (d) 12. A license or certificate of registration issued under ss. 138.09,
16138.12, 217.06, 218.0101 to 218.0163, 218.02, 218.04, 218.05, 224.72, 224.725,
17224.93 or subch. IV of ch. 551.
SB62, s. 68 18Section 68. 50.35 of the statutes is amended to read:
SB62,36,12 1950.35 Application and approval. Application for approval to maintain a
20hospital shall be made to the department on forms provided by the department. On
21receipt of an application, the department shall, except as provided in s. 50.498, issue
22a certificate of approval if the applicant and hospital facilities meet the requirements
23established by the department. The department shall issue a single certificate of
24approval for the University of Wisconsin Hospitals and Clinics Authority that
25applies to all of the Authority's inpatient and outpatient hospital facilities that meet

1the requirements established by the department and for which the Authority
2requests approval.
Except as provided in s. 50.498, this approval shall be in effect
3until, for just cause and in the manner herein prescribed, it is suspended or revoked.
4The certificate of approval may be issued only for the premises and persons or
5governmental unit named in the application and is not transferable or assignable.
6The department shall withhold, suspend or revoke approval for a failure to comply
7with s. 165.40 (6) (a) 1. or 2., but, except as provided in s. 50.498, otherwise may not
8withhold, suspend or revoke approval unless for a substantial failure to comply with
9ss. 50.32 to 50.39 or the rules and standards adopted by the department after giving
10a reasonable notice, a fair hearing and a reasonable opportunity to comply. Failure
11by a hospital to comply with s. 50.36 (3m) shall be considered to be a substantial
12failure to comply under this section.
SB62, s. 69 13Section 69. 50.38 of the statutes is created to read:
SB62,36,15 1450.38 Hospital assessment. (1) In this section "eligible hospital" means a
15hospital that is not any of the following:
SB62,36,1616 (a) A critical access hospital.
SB62,36,1717 (b) An institution for mental diseases, as defined in s. 46.011 (1m).
SB62,36,2018 (c) A general psychiatric hospital for which the department has issued a
19certificate of approval under s. 50.35 that applies only to the psychiatric hospital, and
20that is not a satellite of an acute care hospital.
SB62,36,25 21(2) For the privilege of doing business in this state, there is imposed on each
22eligible hospital an assessment each state fiscal year that is equal to a uniform
23percentage, determined under sub. (3), of the hospital's gross patient revenues, as
24reported under s. 153.46 (5) and determined by the department. The assessments
25shall be deposited in the hospital assessment fund.
SB62,37,4
1(3) The department shall establish the percentage under sub. (2) so that the
2total amount of assessments collected under this section in a state fiscal year is equal
3to the amount in the schedule under s. 20.005 (3) for the appropriation under s.
420.435 (4) (xc) for that fiscal year.
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