Chad Sobieck testifies in opposition to a bill introduced in the Wisconsin Assembly that would place new limitations on the process to establish if a person is eligible for Medicaid. (Wisconsin Examiner photo)

State legislation that would require the Wisconsin health department to verify that all Medicaid recipients are eligible twice a year was met with resounding opposition at a public hearing Thursday.

The bill, AB 163, also would add restrictions on the verification process. With a few differences, the legislation echoed a bill that failed to pass two years ago.

Only one witness testified in favor of the measure: its Assembly author, state Rep. William Penterman (R-Columbus).  

“It will create a balance, an important balance, in preserving a strong safety net for our most vulnerable residents while curbing inappropriate long-term reliance on public assistance,” Penterman said.

The legislation would prohibit the Wisconsin Department of Health Services (DHS) from renewing Medicaid recipients automatically and require DHS to reconsider a person’s eligibility every six months instead of annually, the federal standard.

It would cut off eligibility for six months for Medicaid recipients who don’t report a change, such as higher income, that would make them ineligible for the program. It also prescribes additional requirements for checking databases of other agencies to confirm information about a Medicaid recipient’s qualifications.

Over the course of a 2-1/2-hour hearing, witnesses said the bill would impose significant administrative burdens on Medicaid recipients and likely lead some to be kicked off the rolls, not because they were not eligible but because of mistakes, whether made by the recipient in the process of trying to requalify or by state officials processing their paperwork.

“Its reason seems to be purposely causing difficulty for people whose lives are already a monumental struggle in an attempt to make it too difficult for them to access the services they are entitled to,” said Karel Oliveras, who has two grandchildren with Angelman syndrome, a genetic disorder that causes developmental delays and other problems.

Referring to Oliveras’ comments about the process of establishing eligibility for the program, Rep. Ryan Clancy (D-Milwaukee) asked, “Would you characterize it as too easy?”

“It’s my daughter and her husband who do that,” Oliveras said. “But the stress of that [on them] was very, very obvious.”

Both Clancy and Rep. Christian Phelps (D-Eau Claire), the committee’s two Democrats, were skeptical about the idea that there were people in Wisconsin who were on Medicaid but didn’t qualify.

In response to lawmakers who had implied that Wisconsin’s Medicaid enrollment — about 20% of the state population — was excessive, Tamara Jackson, the legislative policy representative for the Wisconsin Board for People with Developmental Disabilities, said the percentage is similar in most states.   

According to Jackson, Wisconsin’s Medicaid staff already monitors people’s eligibility rigorously. “They are really checking every application and every renewal to make sure that people meet the income, asset, and other eligibility requirements,” she said.  

Chad Sobieck, who uses a wheelchair, said he has been on Medicaid for his entire life and it has enabled him to live in the community with the help of caregivers covered by the program. When completing paperwork, he has to enlist the help of others because he cannot write due to his physical disability, he said. 

A provision in the bill banning DHS from prepopulating forms for the renewal applicant would make that even more difficult.

If he has to qualify every six months and there’s an error that kicks him off  Medicaid for six months, “that would mean that I don’t have caregivers,” Sobiek said. “If there is a gap in those services, I will not be able to remain independent and it will become a safety and health issue for me.”

Almost all the opposition testimony focused on people with disabilities. Several Wisconsin Medicaid programs enable people with disabilities to live at home or in the community, rather than in an institution, with the program covering their needs for health care and home and personal care that they cannot manage on their own.

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Penterman said that after “conversation and collaborating with the stakeholders” he was planning to offer an amendment that would exempt people with developmental disabilities from the legislation.

Critics of the bill, however — including those speaking on behalf of people with developmental disabilities — were largely skeptical about that announcement.

“I am a little offended about the fact that the amendment offered only covers the developmentally disabled,” said Jason Glozier, executive director of the Wisconsin Coalition of Independent Living Centers, arguing that the proposal’s limits would be onerous for people with physical disabilities, too.

“To say that doubling the administrative burden would decrease waste or decrease fraud doesn’t seem to make sense when we have a system that is overburdened and unable to meet its need effectively,” Glozier said.

“Why should somebody who’s been disabled from birth, who’s been paralyzed or acquired a disability, have to consistently re-insist that they have a disability?” he added. “It’s not going to get better.”