The Joint Finance Committee, the state Legislature’s budget writing committee, has begun voting to reshape Governor Tony Evers’ $91 billion state budget bill proposal. The most significant action the GOP-controlled committee took was the approval (along party lines) of a motion to pull more than 380 items from Evers’ two-year spending plan for the state. The items removed from the legislation were either non-fiscal policy items or provisions included by the governor that are opposed by the Republican majority in the Legislature.

More specifically, the motion removed the following health care-related items from the 2021-23 budget bill:

• Full federal Medicaid expansion
• Creation of a state-based Health Insurance Exchange
• Legalization of medical marijuana
• Raising to 21 the minimum age to purchase tobacco products

By removing the provision to expand Medicaid, Wisconsin is declining $1.6 billion in additional federal aid over the next two years, including $1 billion in American Rescue Plan Act (ARPA) funding for each state that approves Medicaid expansion. Proponents of the measure say expanding Medicaid eligibility would not only save the state money, but also provide health coverage to over 90,00 additional people.

Republicans who control the Legislature oppose Medicaid expansion, pointing to the lack of a coverage gaps between BadgerCare eligibility and eligibility for subsidies to purchase private coverage in the health insurance marketplace. They also believe expansion could put Wisconsin is a tough fiscal position in the future if the federal  government decides to reduce Medicaid contributions made to states. 

The Joint Finance Committee will continue to meet during the month of May to take further action on the budget bill. However, they are not expected to address major spending items, including Medicaid issues until next month.