Wisconsin received a $23 million “performance bonus” today from the federal Centers for Medicare and Medicaid Services for the state’s success in improving access to health insurance for low-income children by simplifying BadgerCare enrollment and renewal procedures.
The bonus payment for Wisconsin is the second largest among all the states, with Alabama getting the largest amount (almost $55 million). An additional 14 states are receiving performance bonus funding this year for progress in cutting through red tape and administrative hurdles to enroll significantly more uninsured children in their Medicaid programs. “Wisconsin’s large bonus recognizes the tremendous progress Wisconsin has made, thanks to the leadership of lawmakers in both parties, in creating a highly successful and efficient health care program for children,” said Ken Taylor, WCCF’s executive director.
The performance bonus fund was established by Congress early in 2009 to encourage states to do a better job of enrolling lower income uninsured children already eligible for Medicaid. To be eligible a state must have a significant increase in Medicaid enrollment and must meet certain policy standards for improving enrollment and renewal processes for coverage of children.
Wisconsin did not qualify for a bonus in 2009, but the state made a number of changes in the past year to improve the BadgerCare Plus renewal process and reduce red tape. Those changes, coupled with simplifications initiated in 2008, made the state eligible this year for a bonus payment.
Wisconsin’s bonus amount results from an increase in the federal share of costs of about 85,500 children above a baseline target of 368,000 Medicaid kids. The total cost of those 85,557 kids in fiscal year 2010 was $138 million. As a result of enhanced Medicaid funding through the Recovery Act and the $23.1 million bonus, the Wisconsin share for those children was reduced to only about $18 million, or just 13 percent of the total cost.
The federal performance bonus fund is in effect for three more years, through 2013. If the state doesn’t restore cumbersome application and renewal procedures that often tripped up applicants prior to creation of BadgerCare Plus, Wisconsin should be able to get substantial bonus payments for each of the next three years.
Receiving three more years of bonus funding would help the state maintain BadgerCare Plus until the federal health care reform act delivers larger assistance to the states in 2014.
The other states receiving performance bonuses this year are Alaska, Colorado, Illinois, Iowa, Kansas, Louisiana, Maryland, Michigan, New Jersey, New Mexico, Ohio, Oregon and Washington.”
For additional information about today’s announcement, see the DHS press release or the WCCF release. We have also prepared a short background paper about the performance bonus funding.
Jon Peacock
