$900,000 per Month Increase in DOC Costs Is One of Several Unintended Effects
Rather than accepting enhanced federal Medicaid funds, the Governor proposes to pay for a 3-month delay in BadgerCare eligibility reductions by also delaying positive aspects of the budget bill, including the expansion of coverage for adults who don’t have dependent children. Obviously, the most disappointing aspect of financing the bill in that way is that the Governor is breaking his promise not to create a coverage gap for low-income childless adults. Another smaller and much less obvious problem is that the Special Session bill being considered by the Joint Finance Committee on December 2nd creates a $2.8 million GPR hole in the Department of Corrections budget.
The expansion of coverage to include adults without dependent children is projected to save the DOC about $900,000 per month by picking up a significant portion of the cost of hospitalizing inmates. Read more
Wisconsin has been reducing investments that give families access to high-quality child care, a move that will hurt children’s school-readiness and success in later life.
The state legislature’s freeze on child care payments – payments that help make it possible for parents who work at low-wage jobs to work – has taken a negative toll on parents, children, and child care providers, according to a new report from the Wisconsin Council on Children and Families. The legislature has frozen payment rates for the past seven years, with the effect that providers are dropping out of the program, and parents are having difficulty finding the child care they need in order to work.
The reduced investments in child care stand in stark contrast with Wisconsin’s past approach to helping low-wage parents get the child care they need. In 2006, before the rate freeze, the maximum payment rate covered 75% of child care slots statewide, according to the report. Read more
There are a lot of ways in which America’s free market health care system boosts cost to levels far in excess of the costs anywhere else in the world, even though Americans aren’t healthier, and don’t appear to be getting the best health care. Most of those ways are perfectly legal; others not so much.
Once in a while a health care corporation that is exploiting the opportunities to maximize profit in unethical or illegal ways is called on the carpet and forced to pay restitution for their shady exploits. There have been two examples of that in the last week or so, and both could help Wisconsin fill a hole in the state’s Medicaid budget.
Last week the U.S. Department of Justice announced that Johnson and Johnson will pay $2.2 billion to settle a lawsuit related to deceptive marketing and distribution of two antipsychotic drugs, Risperdal and Invega. The drug company misrepresented what the drugs should be allowed for, and allegedly paid kickbacks to doctors and agencies to make sure their drugs were prescribed for certain off-brand purposes. Read more
Tiff over WI and MN Insurance Rates Rekindles Debate about BadgerCare
A dispute emerged last week over the difference between premiums for health insurance purchased through the new Marketplaces in Minnesota and Wisconsin. The squabble between Citizen Action of Wisconsin and the Insurance Commissioner’s Office has rekindled debate over the effects of the decision by the Governor and Wisconsin legislators to turn down federal Medicaid funding and cap BadgerCare eligibility at 100% of the federal poverty level.
Although I don’t feel qualified to comment on all the various reasons that the rates in the new Marketplace in Wisconsin seem to be considerably higher than those in Minnesota, I think it’s important to understand how the choices states made about Medicaid eligibility are affecting the rates charged by insurers participating in the Marketplaces.
Many Wisconsin residents are still feeling the effects of the recession, according to a new county-level analysis released today by the Wisconsin Council on Children and Families.
The income of a typical Wisconsin household is still significantly below what it was in 2008, according to the analysis. In 2012, a typical Wisconsin household had $51,000 in income, compared to $55,600 in 2008. If household incomes had stayed at 2008 levels instead of declining dramatically during the recession, a typical Wisconsin household would have earned an additional $14,700 between 2008 and 2012, compared to what it actually earned.
The WCCF analysis includes 21 county fact sheets that outline how residents of each county are faring with regards to poverty, income, and health insurance coverage. The fact sheets include comparisons to the state and national level, and include recommendations for making investments that will help Wisconsin residents lift themselves out of poverty and get access to health insurance. Read more
Growth in Per Capita Income Is Expected to Cause $52 Million Increase in Wisconsin’s Share of Medicaid Spending
Wisconsin Share and Fluctuations in Cost-sharing Would be Reduced if State Took Enhanced Medicaid Funding
Wisconsin Health News reported this morning that our state will probably have to spend $52 million more from state General Purpose Revenue (GPR) because of a drop in the federal share of Medicaid spending (known as the Federal Medical Assistance Percentage, or FMAP). A Legislative Fiscal Bureau (LFB) memo issued yesterday estimated the increase in the Wisconsin share, based on a reestimate of the FMAP in FY 2015 by an organization called Federal Funds Information for States (FFIS). The reduced federal share results from per capita income growth in our state.
It will be interesting to see if state officials use the reduction in federal funds to argue that it’s perilous to take Medicaid dollars, so it was wise not to accept the enhanced federal funding under the Affordable Care Act (ACA). However, I would argue just the opposite. Read more
Since late spring we’ve been raising concerns that the biennial budget bill cuts funding for the welfare-to-work program known as Wisconsin Works (W-2) based on faulty assumptions. This June 17 paper examines the problem and explains how reducing W-2 spending and shifting federal block grant funds made it easier to cut state taxes in the budget bill.
This week the Walker Administration acknowledged the W-2 shortfall and submitted a plan to the Joint Finance Committee (JFC) to narrow the funding gap by $9.6 million. The plan submitted to JFC by the Dept. of Children and Families (DCF) and Dept. of Health Services (DHS) closes part of the gap by using unallocated federal funding known as “income augmentation” revenues. These funds are received by the state as the federal share of state and local spending for things like Targeted Case Management and the Medicaid HealthCheck program.
Poverty Remains High, Median Income Remains Low, and Health Insurance Coverage Improves Modestly
Data released today by the U.S. Census Bureau reinforce the recent findings by economists that there is a very wide gap between the rich and the poor. The new Census figures for 2012 from the Current Population Survey (CPS) show that the painfully slow economic recovery has yet to help a large segment of Americans. Poverty remained high last year, at 15% nationally, and median income remained low — 8.3% below the 2007 level, before the Great Recession began.
In a New York Times blog post this afternoon, a graph prepared by Jared Bernstein uses the 2012 Census Bureau data to illustrate the diverging trend lines since 1967 in the household income of low, middle and upper income Americans. And as Bernstein notes, the divergence would be much wider if the Census Bureau didn’t exclude capital gains income from its data. Read more
Minnesota released much more complete information than Wisconsin did about premiums charged for insurance policies offered in the new insurance marketplace.
Workers in Wisconsin and across the U.S. must still cope with a relatively weak labor market. That is especially challenging for low-wage workers who are struggling with the declining value of the minimum wage, reductions in employer benefits like health care, and growing inequality. Those challenges are exacerbated in Wisconsin by budget decisions made by state lawmakers.
A new Wisconsin Budget Project issue brief examines how the how state budget choices are affecting low-wage workers in Wisconsin. It focuses primarily on the effects of the new budget bill, but also examines a few instances of how that bill continues or compounds the challenges for low-wage workers caused by the 2011-13 budget.
Some of the major effects include the following policy choices relating to health insurance, child care, taxes and unemployment insurance:
Making health insurance and care much more expensive for many parents now in BadgerCare
The 2013-15 budget bill cuts in half the income eligibility ceiling for adults participating in BadgerCare – reducing that cap from 200% of the federal poverty level to just 100%. Read more