Wisconsin budget crisis threatens physicians' Medicaid pay

Doctors fear that Medicaid reductions will damage patients' access to the medical system.

By Dave Hansen, AMNews staff. Sept. 24, 2007.

Washington -- Wisconsin physicians face stiff reductions in state Medicaid spending if the governor and legislators fail to agree on a state budget soon.

Democratic Wisconsin Gov. Jim Doyle plans to place 20% of the state's Medicaid budget off-limits each month because the Republican-led State Assembly will not approve a corresponding amount -- $363 million -- in cigarette taxes and hospital assessments he asked for in his fiscal 2008-09 biennial budget proposal. The Senate passed a bill reflecting Doyle's budget plan, but the Assembly approved a competing measure. The two bills are now in conference committee.

The frozen Medicaid funding will be released when the state passes a new budget, which was due July 1, stated an Aug. 29 memo from Doyle's Dept. of Administration to the Dept. of Health and Family Services.

Doyle stuck to the plan even though an Aug. 30 letter from the state's Legislative Fiscal Bureau concluded that there are sufficient funds to support Medicaid through March 2009. If no budget is passed, state law provides that funding would continue at current levels until one is.

The 20% freeze has not yet gone into effect. The Dept. of Health and Family Services on Sept. 11 released its plan to implement the decrease. It places heavier reductions on groups the department views as less dependent on Medicaid revenues, such as primary and acute care facilities and health professionals. Funding for all hospital, physician and clinic services would be reduced by 35% starting in January 2008.