Doyle Vetoes Medicaid Increases, Makes Additional Cuts
Exercising his line-item veto power, Governor Jim Doyle left his mark on Wisconsin’s 2005-07 biennial budget, which he signed on Monday. His veto message to the Legislature reflects his commitment to fund K-12 public education. However, the decision to use further Medicaid cuts for school funding has drawn strong criticism from Republican leaders and the health care industry.
Overall, the veto makes approximately $90 million in additional Medicaid cuts on top of the $40 million cut in Doyle’s original budget. Although the largest share of the cuts will impact nursing homes, effects will be felt by assisted living. The vetoes made that will most directly impact assisted living are:
- A cut of $48 million in 2005-06 and $14 million in 06-07, to be found in efficiencies
- A cut of $16.8 million, originally from personal care, to be spread throughout the entire Medicaid program
- Elimination of the Nursing Home Relocation requirement that individuals relocated from nursing homes into the community have lived in a nursing home for 100 days
- Deletion of a study on the costs of the Nursing Home Relocation Program
- Deletion of restrictions on how DHFS uses its Family Care functional screen
- Deletion of DHFS prohibition on reimbursement limits for psychotropic medications
- Rollback of a $2 increase in generic drug copayments in BadgerCare and MA
- Deletion of a study on how certain functions at the Northern and Southern DD Centers could be shared between DHFS,
- Corrections and Veterans Affairs
Doyle did maintain a number of budget provisions affecting assisted living, including:
- The CIP-II Nursing Home Relocation Program
- Relocation of individuals from state centers and ICF/MRs to 5-8 bed CBRFs without DHFS approval
- Creation of nine new aging and disability resource centers serving 13 counties
- Additional funding for Jefferson County ICF/MR relocations
- Support for new COP slots through Community Opportunity Recovery Waivers
The Republican legislative leadership is considering trying to override Doyle’s Medicaid vetoes, but with 3 Democrats in the Senate and 6 in the Assembly needed for an override, the chances for a veto override appear slim.