Federal officials notified the Wisconsin Department of Health Services (DHS) that the state will be allowed to make significant cost-cutting changes to BadgerCare. Although we don’t have precise figures yet on the number of people to be adversely affected, it appears that those changes will cause at least 17,000 adults to lose their BadgerCare coverage, and according to DHS, 48,000 adults will have significantly higher premiums. These changes are being made even though substantial cost-cutting in BadgerCare isn’t necessary to balance the Medicaid budget.

DHS officials often contend that the changes they have been seeking to make to BadgerCare are consistent with the federal health care reform law (the Affordable Care Act, or ACA) and will serve as a test of portions of that act that take effect in 2014. A new WCCF analysis explains that although it is accurate to say that the imminent changes are allowable under federal law, there are very substantial differences. The new paper explains several discrepancies in important policy details that will result in thousands more people losing their BadgerCare coverage than would be the case if Wisconsin closely followed the ACA and was truly interested in testing its provisions.

More importantly, the new WCCF paper discusses the striking contrast between the goals of the ACA and the objectives of the BadgerCare changes. It points out that the Governor has resisted implementing all the various aspects of the ACA that would advance its goal of improving access to affordable health care, while embracing a few narrow portions of the law that allow the state to reduce BadgerCare eligibility. Instead of moving our health system forward, those changes will drive up the number of uninsured Wisconsinites and exacerbate the cost-shifting that is pushing up costs for people with insurance.

Jon Peacock