12/2/2011
Budget strengthens Medical Assistance safety net
By Mary Lazich
The column below reflects the views of the author, and these opinions are neither endorsed nor supported by WisOpinion.com.
If budgets reflect the priorities of a state, Wisconsin's most recent balanced budget tells an interesting story.
Faced with a difficult $3 billion budget deficit, the balanced budget emphasized getting the state's financial health in order and putting more money in the pockets of ordinary citizens. Despite a reduction in state funding for school districts, the balanced budget provides school districts mechanisms to fund their operations and continue providing excellent education.
While the budget included funding reductions for many government programs, the state's Medical Assistance program was an outlier. Rather than budget reductions, Medical Assistance, already one of the largest portions of the budget, received an increase in funding. A large increase.
The final budget approved by Legislative Republicans and signed into law by Governor Scott Walker added $1.24 billion to the state's Medical Assistance budget, a 43 percent increase over the previous budget.
The massive increase in funding for Medical Assistance was necessary just to keep pace with the expansion of Medicaid programs during recent years. Since 1991, Medicaid enrollment increased a staggering 156 percent. As of 2008, fully 45 percent of all births in Wisconsin were paid for by the state through Medicaid programs. In fact, a third of all children in the state, are enrolled in Medicaid programs. During the past 15 years, the portion of Wisconsin adults with an income between 100 and 200 percent of the federal poverty level increased from 6.5 percent to 30 percent. One fifth of all Wisconsin residents now receive some Medical Assistance benefit.
Even with the billion dollar-plus commitment to Medical Assistance programs, an additional $500 million was needed to balance the Medical Assistance budget. Department of Health Services Secretary Dennis Smith and Deputy Secretary Kitty Rhodes conducted four town hall meetings around the state and one online town hall meeting to solicit money-saving suggestions from Medicaid members, Medicaid providers, and other Wisconsin citizens.
Based on the response from those town hall meetings, the Department of Health Services developed a proposal to enact money-saving program efficiencies. The efficiencies will allow Wisconsin to provide long term, sustainable Medicaid services, while minimally affecting benefit recipients.
Tens of millions of dollars in savings are expected from changes such as increasing auditing to root out and eliminate fraud in Medical Assistance programs, improving reporting practices to capture all federal funds available, and providing incentives for health care providers to use cost-effective alternatives.
Larger savings will be achieved by capping Family Care enrollment. The Department of Health Services has added 700 people to Family Care since the enactment of the cap, and there are still more than 600 slots open in the program.
Requiring some Medicaid recipients pay a slightly increased premium and requesting a waiver from the federal government to make additional changes without dropping recipients with incomes greater than 133 percent of the federal poverty level will yield more savings.
Providing needy Wisconsin residents with a safety net in the form of Medical Assistance programs has long been a priority in this state. Republicans continue the tradition by adding more than a billion dollars to fund these important programs. Instituting reforms offered by the Department of Health Services will continue the mission of the state's Medical Assistance program while ensuring its long-term viability.
-- Lazich, a Republican state senator, lives in New Berlin.
Budget strengthens Medical Assistance safety net
By Mary Lazich
The column below reflects the views of the author, and these opinions are neither endorsed nor supported by WisOpinion.com.
If budgets reflect the priorities of a state, Wisconsin's most recent balanced budget tells an interesting story.
Faced with a difficult $3 billion budget deficit, the balanced budget emphasized getting the state's financial health in order and putting more money in the pockets of ordinary citizens. Despite a reduction in state funding for school districts, the balanced budget provides school districts mechanisms to fund their operations and continue providing excellent education.
While the budget included funding reductions for many government programs, the state's Medical Assistance program was an outlier. Rather than budget reductions, Medical Assistance, already one of the largest portions of the budget, received an increase in funding. A large increase.
The final budget approved by Legislative Republicans and signed into law by Governor Scott Walker added $1.24 billion to the state's Medical Assistance budget, a 43 percent increase over the previous budget.
The massive increase in funding for Medical Assistance was necessary just to keep pace with the expansion of Medicaid programs during recent years. Since 1991, Medicaid enrollment increased a staggering 156 percent. As of 2008, fully 45 percent of all births in Wisconsin were paid for by the state through Medicaid programs. In fact, a third of all children in the state, are enrolled in Medicaid programs. During the past 15 years, the portion of Wisconsin adults with an income between 100 and 200 percent of the federal poverty level increased from 6.5 percent to 30 percent. One fifth of all Wisconsin residents now receive some Medical Assistance benefit.
Even with the billion dollar-plus commitment to Medical Assistance programs, an additional $500 million was needed to balance the Medical Assistance budget. Department of Health Services Secretary Dennis Smith and Deputy Secretary Kitty Rhodes conducted four town hall meetings around the state and one online town hall meeting to solicit money-saving suggestions from Medicaid members, Medicaid providers, and other Wisconsin citizens.
Based on the response from those town hall meetings, the Department of Health Services developed a proposal to enact money-saving program efficiencies. The efficiencies will allow Wisconsin to provide long term, sustainable Medicaid services, while minimally affecting benefit recipients.
Tens of millions of dollars in savings are expected from changes such as increasing auditing to root out and eliminate fraud in Medical Assistance programs, improving reporting practices to capture all federal funds available, and providing incentives for health care providers to use cost-effective alternatives.
Larger savings will be achieved by capping Family Care enrollment. The Department of Health Services has added 700 people to Family Care since the enactment of the cap, and there are still more than 600 slots open in the program.
Requiring some Medicaid recipients pay a slightly increased premium and requesting a waiver from the federal government to make additional changes without dropping recipients with incomes greater than 133 percent of the federal poverty level will yield more savings.
Providing needy Wisconsin residents with a safety net in the form of Medical Assistance programs has long been a priority in this state. Republicans continue the tradition by adding more than a billion dollars to fund these important programs. Instituting reforms offered by the Department of Health Services will continue the mission of the state's Medical Assistance program while ensuring its long-term viability.
-- Lazich, a Republican state senator, lives in New Berlin.