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WiAHC Government Affairs Report

June 30, 2023 8:12 AM | Account Administrator (Administrator)

By Hoven Consulting – WiAHC’s lobbying firm

  • Fiscal Year 2023-2025 State Budget Update – Department of Health Services

On June 15, the Legislature’s Joint Finance Committee (JFC) approved Fiscal Year 2023-2025 funding levels for the Department of Health Services (DHS).  The approved DHS budget increased spending by $3.1 billion overall during the biennium. The budget bill will still need to be approved by the JFC and the legislature and signed by the Governor before it becomes law.

In part due to WiAHC’s advocacy, JFC approved a continuation of the 5% Home and Community Based Services (HCBS) rate increase that was initially funded by federal American Rescue Plan Act (ARPA) funds.  

The following are highlights of the approved DHS budget:

Medicaid/Medical Assistance

  • Home and Community Based Services (HCBS) Rate Increase Continuation:  Provide $43,707,300 in FY2023-24 and $181,951,800 in FY2024-25 to continue the federal American Rescue Plan Act (ARPA) HCBS 5% rate increase from April 1, 2024, through June 30, 2025.
  • Family Care Direct Care Reimbursement:  Provide $12,993,800 in FY2023-24 and $25,438,800 in FY2024-25 to increase the direct care and services portion of the capitation rates DHS provides to managed care organizations to fund long-term care services for individuals enrolled in Family Care.
  • Personal Care Reimbursement:  Provide $12,993,800 in FY2023-24 and $25,438,800 in FY2024-25 to increase Medical Assistance personal care reimbursement rates.
  • Nursing Home Ventilator Dependent Rate:  Provide $5,000,000 in FY2023-24 and $5,000,000 in FY2024-25 to increase the all-encompassing ventilator-dependent resident reimbursement rate for nursing home care. Require DHS to increase the reimbursement rate under the Medical Assistance program for an authorized facility treating a resident of the facility who has received prior authorization for ventilator-dependent care reimbursed under the all-encompassing ventilator dependent resident reimbursement rate by $200 per patient day.
  • DHS and Managed Care Organization Reporting Requirements:  Require DHS to include information regarding (a) executive leadership salaries and (b) amounts retrieved by the state under the contractual risk corridors, in the publicly available financial summaries for Family Care, Family Care Partnership, and PACE managed care organization. Require DHS and Family Care, Family Care Partnership, and PACE managed care organization (MCO) to track and annually report to JFC total authorized and total provided care plan hours by service category and MCO.

Elder and Disability Services

  • Complex Patient Pilot Program:  Provide $5,000,000 in FY2023-24 on a one-time basis to help facilitate the transfer of complex patients from acute care settings, such as hospitals, to post-acute care facilities, such as nursing homes. This pilot program appears to be focused on the relationship between hospitals and nursing home facilities.

Public Health

  • Allied Health Professional Training:  Provide $2,500,000 annually to expand allied health professional education and training grants.  Expand eligibility for the program to include registered nurses.

The DHS budget was adopted by the committee on a party line vote of 11-4. While these items will be included in the Legislature's budget proposal, they will only be enacted if the budget bill is passed by both the Assembly and Senate and the bill is signed by Governor Evers.

  • Fiscal Year 2023-2025 State Budget Update – Department of Safety and Professional Services (Occupational Credentialing)

On June 8, the Legislature’s Joint Finance Committee (JFC) held a committee meeting and approved the Fiscal Year 2023-2025 budget for the state Department of Safety and Professional Services (DSPS).  This agency is responsible for occupational credential processing, the state’s electronic Prescription Drug Monitoring Program, as well as other matters.  In recent years, DSPS has struggled with processing a backlog of applications for new and renewed occupational credentials. 

During this meeting, committee Republicans proposed funding the following:

  • $3.57 million for occupational credentialing software and related maintenance.
  • 7 license processing contract workers (on a four-year employment contract).
  • 6 license processing-focused customer service call center contract workers (on a two-year employment contract).
  • $1.1 million for software improvements, electronic health records integration, and licensing costs for the state’s electronic Prescription Drug Monitoring Program (ePDMP). 

The committee approved this funding package and did not approve an alternate funding package advanced by committee Democrats.   

During this committee meeting, committee Democrats criticized GOP JFC members for not including funding for more credential processing staff, bearing in mind the ongoing credential processing backlog at DSPS.  JFC Republicans responded by noting that the agency will improve its output with fewer employees due to the increased use of technology. 

The DSPS budget was also adopted by the committee on a party line vote of 11-4. While these items will be included in the Legislature's budget proposal, they will only be enacted if the budget bill is passed by both the Assembly and Senate and the bill is signed by Governor Evers.

  • Professional Advisory Bodies Rule Changes - Update

In January 2023, WiAHC Board Chair Jayne Thill wrote to Deb Standridge, the Department of Health Services’ (DHS) Deputy Secretary, requesting that the DHS eliminate an outdated administrative rule relating to professional advisory bodies for home health care agencies in their biennial rules review.  Specifically, this would bring Wisconsin’s regulations in line with federal regulations by eliminating professional advisory bodies but maintaining governing bodies along with regulatory oversight for ensuring the quality of care and patient safety. 

WiAHC made this request since federal regulations eliminated professional advisory committees in 2017, as home health agencies are already overseen by a governing body pursuant to federal regulations.  They are also overseen by governing bodies in Wisconsin administrative rules.  In 2017, the federal Centers for Medicare & Medicaid Services (CMS) also put in place federal regulations requiring home health agencies to implement ongoing quality assessment and performance improvement (QAPI) programs.  Essentially, CMS replaced professional advisory committees in federal regulations with the creation of the QAPI program.

On May 18, Governor Evers approved a document – a “statement of scope” – for a biennial review of administrative rules intended to repeal obsolete state administrative rules.  This document includes a provision that would effectively remove professional advisory bodies from the home health care portion of state administrative rules.  The approval of the “statement of scope” is the first step in the regulatory process.  WiAHC will provide future updates in this newsletter.

  • WiAHC Spring Conference

WiAHC held its 2023 Spring Conference at the Best Western Premier Waterfront Hotel and Conference Center in Oshkosh from June 1-2.  This event featured a combination of general sessions and breakout sessions of interest to all those who work in Wisconsin’s home health care industry.  Leading subject matter experts from Wisconsin and throughout the nation presented at this event.  In addition, WiAHC was fortunate enough to host two state legislators at this conference – Representative Lori Palmeri (D-Oshkosh) and Senator Dan Feyen (R-Fond du Lac).  Rep. Palmeri serves on the Assembly Committee on Mental Health and Substance Abuse Prevention and Sen. Feyen is the Assistant Majority Leader in the state Senate. 

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