Wisconsin Governor Signs $47 Billion Budget, Including Provision to Fund Senior Prescription Drug Program

Wisconsin Gov. Scott McCallum (R) on Aug. 30 signed a $46.9 billion budget that included a variety of health care provisions. In signing the bill, McCallum also vetoed several health-related proposals. The following highlights the main health care provisions impacted by the bill's signing.

• Creates a prescription drug plan for seniors, expected to cut annual drug costs for participants by an average of $970. Under the program, single seniors earning less than $20,616 annually and couples with annual incomes up to $27,864 qualify for the benefits. Seniors would have to meet a $500 deductible and be responsible for copayments of $5 for generic drugs and $15 for brand name medicines.
• Increases the state tax on cigarettes by 18 cents per pack to 77 cents, with increased revenues used largely to fund the prescription drug plan (Chaptman, Milwaukee Journal Sentinel, 8/30).
• Vetoes a provision to narrow "rate bands" -- the range within which health insurers may set premiums -- for small businesses. Under the provision, premiums for companies with up to 50 employees would have been required to fall 10% above and below a midpoint. With the veto, the current band of 30% above and below a midpoint remains effective.
• Vetoes a provision giving a $850,000 state loan to the state Department of Employee Trust Funds to establish a health insurance pool for small businesses (Manning, Milwaukee Journal Sentinel, 8/30).
• Increases funding for FamilyCare, a pilot program that uses federal and state funds to provide care for the elderly or those with disabilities in their communities, homes or nursing facilities, but vetoes a provision that would have expanded the program into Kenosha County. The program will therefore remain in operation in only five counties (Held, Milwaukee Journal Sentinel, 8/30).

Payment Changes
In other Wisconsin news, under a change in the state's Health Insurance Risk Sharing Plan, which offers coverage for those uninsurable in the private market, participants will be required to pay for prescriptions "up front" and will be reimbursed by the state "about two weeks later." Pharmacies had requested the change to better determine how much to charge participants for prescriptions, even though about 70% of the roughly 11,500 people in the program were already paying up front before the change. State officials say any problems with the change will be "short term," as the budget signed by McCallum included a "drug coinsurance" that will change the ways prescription reimbursements are handled ( AP/St. Paul Pioneer Press, 8/31). For further information on state health policy in Wisconsin, visit State Health Facts Online.