State Budget Recap: Health Services, Insurance, Children and Families (June 15)

On Tuesday, June 15, the Wisconsin Legislature’s Joint Finance Committee (JFC) held an executive session to consider various motions related to the 2021-23 state budget. Below is a list of motions that JFC considered on June 15, including whether each motion was adopted and how the committee voted. The committee includes 12 Republican members and 4 Democrats; all 11-4 and 4-11 vote tallies were along party lines. One Republican member of JFC was absent on June 15.

Adopted

  • Motion 110: Department of Children and Families (11-4)
  • Motion 111: Department of Health Services, Office of the Commissioner of Insurance, Board on Aging and Long-Term Care (11-4)
  • Motion 112: Public Service Commission (11-4)

Not adopted

  • Motion 103: Full Medicaid Expansion (motion ruled out of order)
  • Motion 106: Public Service Commission (motion ruled out of order)
  • Motion 107: Public Service Commission (4-11)
  • Motion 108: Department of Children and Families (4-11)
  • Motion 109: Department of Health Services, Office of the Commissioner of Insurance (4-11)

Below are highlights from the motions approved by JFC:

  • Fully fund a cost-to-continue Medicaid budget with $120.3 million in 2021-22 and $397.2 million in 2022-23. Provide additional funds ($9.6 million in 2021-22, $20.5 million in 2022-23) to increase rates for Family Care, PACE, and Partnership managed care organizations.
  • Provide $20 million annually for Disproportionate Share Hospital (DSH) payments and increase the amount the Department of Health Services has to allocate for payments to $47.5 million. Set the maximum payment per hospital to 6.7% of all funds distributed.
  • Extend postpartum eligibility for 30 days (for a total of 90 days) funded by $1 million GPR in 2022-23 if federal approval for the extension is granted.
  • For 2021-22, consistent with final reinsurance claims filed by insurers for the 2020 plan year, reduce funding by $16.5 million in 2021-22, reflecting the amount of state funding needed to make the reinsurance payments in 2021-22. Beginning in 2022, increase the maximum amount of reinsurance payments from $200 million to $230 million.

Increase reimbursement rates for various medical services by the following percentages and amounts:

  • A 40% increase in Medicaid reimbursement for dental services.
  • A 20% increase for child and adolescent day treatment services
  • A 15% increase for outpatient mental health and substance abuse services
  • A 15% increase for emergency physician services.
  • A 15% increase for autism services.
  • A 5% increase for opioid treatment providers.
  • $252 million for Medicaid reimbursement for skilled nursing facilities and intermediate care facilities for people with intellectual disabilities.
  • $104 million for direct care workers.
  • $78 million for personal care agencies.
  • $2.9 million for speech and language pathology services.
  • $1.4 million for hearing aid and audiology services.
  • $6.7 million for ground ambulance transport.
  • $1.4 million for chiropractic services.
  • $2.2 million for physical therapy.