WiHPCA News

Early on July 1, Governor Tony Evers (D) announced an agreement on the state Fiscal Year 2025-2027 budget with legislative leadership. The budget bill compromise between Governor Evers and legislative leaders will boost funds for the Universities of Wisconsin, special education, and childcare providers in exchange for preserving approximately $1.4 billion in Republican tax cuts. The Legislature’s Joint Finance Committee approved this agreement on July 1 by a vote of 13-3. Subsequently, the state Senate passed the bill on July 2, and the state Assembly passed it in the early morning hours of July 3. Governor Evers also signed the bill on July 3.

The following are highlights of the $111.1 billion FY2025-2027 budget:

State Taxes

•  A reduction of the Wisconsin individual income tax by over $600 million annually.
• Over 1.5 million of Wisconsin taxpayers will receive a tax cut, averaging $180.
• 82 percent of the tax cut will go to taxpayers with adjusted gross income below $200,000.

• Reducing income taxes for many Wisconsin retirees.
• Allowing those age 67 or older to exclude up to $24,000 (up to $48,000 for married-joint filers) of retirement income payments will reduce taxes on approximately 280,000 Wisconsin filers by an average of about $1,000 per filer.

Department of Public Instruction

• A $1.4 billion increase in funding for public K-12 schools in Wisconsin.
• This includes an increase in the special education reimbursement rate, to 42% in FY2025-2026 to 45% in FY2026-2027. According to Governor Evers, this is the highest reimbursement rate in three decades.

Department of Children and Families

• The Fiscal Year 2025-2027 budget includes more than $361 million in economic support for Wisconsin’s child care industry, including:
• $110 million in FY2025-2026 for direct payments to child care providers.

Department of Health Services

• Medicaid Cost-to-Continue: The budget agreement also fully funds the state’s Medicaid program – this is known as “Medicaid cost-to-continue.” This funding incorporates enough funding to pay for the increased costs of providing services and also takes into account changing Medicaid enrollment projections.

• In FY2025-2026, $1.529 billion is provided and in FY2026-2027, $2.279 billion is provided.

• Hospital Assessment: At present, Wisconsin hospitals pay 1.8% of their net patient revenue to the state Department of Health Services (DHS) – this is known as the “hospital assessment.” This budget agreement increases this percentage to 6%.
• 30% of these funds will be held in the Medical Assistance Trust Fund, which helps pay for the state’s Medicaid program.
• The rest of this funding will be used to make hospital provider payments, resulting in over $1.1 billion in funding to go to Wisconsin hospitals.

• Home Health Skilled Nursing Medicaid Rate Increase: Provide $294,300 in FY2025-2026 and $588,600 in FY2026-2027 to increase Medicaid reimbursement rates for home visits performed by LPNs/RNs employed by home health agencies, effective January 1, 2026.
• Private Duty Nursing Medicaid Rate Increase: Provide $4.7 million in FY2025-2026 and $9.59 million in FY2026-2027 to increase Medicaid reimbursement rates for private duty nursing services provided by RNs and LPNs (excluding PDN services provided by independent practice RNs and LPNs), effective January 1, 2026.
• Personal Care Rate Medicaid Rate Increase: Provide $6.3 million in FY2025-2026 and $12.7 million in FY2026-2027.
• WisCaregiver Careers: Provide $2 million in FY2025-2026 to increase funding for this program, which aims to increase the number of certified nurse aides (CNAs) and certified direct care professionals (CDCPs) in the state.
• Free and Charitable Clinics: Increase funding for free and charitable clinics by $1.5 million between FY2025-2027.
• Federally Qualified Health Centers: Provides $800,000 annually to increase grants to such centers.
• ·        Health Care Provider Training Grants: Provide $1 million in FY2025-2026 to increase funding for the allied health professional education training program.
• University of Wisconsin Hospital and Clinics: Increases the uncompensated care supplement by $10 million annually.
• Adult Level One Trauma Hospitals: Provides $35 million in grants annually to support these hospitals.
• Regional Referral Hospital Support Payment: Provides $15 million annually to a regional referral center providing tertiary-level care to residents of multiple counties.
• Grants to Health Center “Look-Alikes”: Provides $200,000 annually to such health centers that are designated as federally qualified health center look-alikes.
• These types of health centers are community-based health care facilities that meet federal health center program requirements, but do not receive health center program funding. These centers provide primary care in underserved areas.

• State Mental Health Institutes: Provides $15.8 million in FY2025-26 to these institutes to address a projected deficit from fiscal year 2024-25 in the civil patient treatment program.

Higher Education Aids Board

• Emergency Medical Services Training Costs: Provide $3.5 million in FY2026-2027 for Emergency Medical Services training reimbursements related to training and materials incurred in completing a course at a Wisconsin Technical College System institution.

Department of Safety and Professional Services

• Occupational Credentialing Customer Service Call Center Staff: Extend five call center contract employees for three more years – until September 30, 2028. Provide $253,100 in FY2025-26 and $337,300 in FY2026-27 to support the positions.

• Occupational Credentialing Board Support Staff: Provide $126,200 in FY2025-26 and $164,400 in FY2026-27 and one pharmacy practices consultant for inspections of primarily non-retail pharmacy locations.

Universities of Wisconsin (UW)

According to Governor Evers, this budget will include the largest increase in funding for the UW System in nearly two decades. In particular, it includes:

• An increase of over $239 million in operational funding for the UW System, including:
• $54 million to help retain and recruit faculty in high-demand fields.
• Over $94 million to increase wages for faculty and staff.

Department of Workforce Development

• Worker’s Compensation – Hospital Service Fee Schedule: Provide that a fee specified in a hospital service fee schedule, for the purpose of paying a worker’s compensation claim, be utilized only if: (a) the fee is for an item or service provided by an eligible hospital; (b) the fee is for an item or service for which the eligible hospital may receive hospital inpatient or outpatient reimbursement from the Medicaid program; and (c) the fee is paid within the applicable period (up to 90 days, with possible 30 day extensions).

On July 15, DHS released their analysis showing how the recently enacted federal budget reconciliation bill will likely impact Wisconsinites who benefit from Medicaid (e.g., BadgerCare Plus) programs. Overall, DHS agrees with the estimate provided by the Congressional Joint Economic Committee that 276,175 individuals in our state will lose health care insurance coverage under the Affordable Care Act and Medicaid over the next 10 years. More specifically, 63,000 Wisconsin adults without dependent children are estimated to be at high risk of losing Medicaid coverage due to the work requirements included in this new federal law.

For more details, please view the detailed analysis on the DHS website.

On June 25, 2025, Marquette University Law School Poll released its most recent poll, which surveyed 873 registered Wisconsin voters between June 13-19, 2025. This poll is the first Wisconsin state-specific Marquette poll since the spring election. This new poll covers political approval ratings, budget issues, and education policy. The following poll findings may be of interest:

Elected Officials

President Trump Job Approval

•  47% approve of the job President Trump (R) is doing.
•   52% disapprove.
•  1% don’t know.

Governor Tony Evers Job Approval

•  48% approve of the job Governor Tony Evers (D) is doing.
•  46% disapprove.
•  5% don’t know.

Wisconsin Legislature Job Approval

• 41% approve of the state legislature’s job performance.
• 50% disapprove.
• 10% don’t know.

Wisconsin Supreme Court Job Approval

•  49% approve of the state supreme court’s job performance.
•  38% disapprove.
• 13% don’t know.

U.S. Senator Ron Johnson Favorability

•  40% have a favorable opinion of U.S. Senator Ron Johnson (R)
•  44% have an unfavorable opinion of him.

U.S. Senator Tammy Baldwin Favorability

•  44% have a favorable opinion of U.S. Senator Tammy Baldwin (D)
•  47% have an unfavorable opinion of her.

Wisconsin State Budget

State Tax Cut

When informed that state government has a roughly $4 billion surplus, registered voters are asked how much of that should go towards a tax cut.

•  27% feel that the entire surplus should be used for a tax cut.
•  9% feel that 75% of the surplus should be used for a tax cut.
•  29% feel that half of it should be used for a tax cut.
•  19% think that approximately 25% of it should be used for a tax cut.
•  16% feel that none of the surplus should be used for a tax cut.
•  1% don’t have a position.

State and Local Policy

Extending Medicaid Coverage to New Mothers One Year After Giving Birth

•    66% support this.
•   33% oppose this.

Childhood Vaccine Benefits and Risks

When asked whether the benefits or the risks are greater for children receiving the measles, mumps, and rubella (MMR) vaccine, the survey found:

• ·        84% feel that the benefits outweigh the risks.
• ·        15% feel that the risks outweigh the benefits.

State Education

Satisfaction with Public Schools

•  63% are very satisfied or satisfied.
•  36% are very dissatisfied or dissatisfied.
•  1% don’t know or have mixed views.

Property Taxes vs. K-12 Funding

When asked whether reducing property taxes or increasing spending on K-12 spending on public schools is more important, the survey found the following:

•  57% prefer reducing property taxes.
•   43% prefer increasing spending on public schools.

On June 30, the state Department of Health Services (DHS) released a report addressing Wisconsinites who receive both Medicaid and Medicare benefits – otherwise known as “dual eligibles.” This nine-page report includes various findings and recommendations. The full report may be viewed on the DHS website.

Each July, the state Department of Health Services (DHS) is required by state law to adjust the maximum amounts that health care clinicians may charge patients for their medical records. This adjustment takes into account inflationary changes over the prior calendar year. This updated fee schedule may be viewed on the state legislature’s website.

Following the overwhelming Assembly passage (96-1) of legislation creating a state palliative care council (Assembly Bill 23) on May 13, WiHPCA’s lobbyists continue to aggressively lobby the Legislature to move this bill through the legislative process.

As this legislation has passed the full Assembly, the lobbying focus is now on the state Senate – including meeting with various senators, as well as their staff members. There is also an effort to draft a coalition letter to all state Senators in support of this legislation, which will include various supportive stakeholders, including many in the health care field. Once the state budget process is completed later this summer, we intend to ask WiHPCA members to call and visit the offices of state senators to request their support for this legislation.

Further updates on this legislation will be included in future editions of this newsletter.

The Legislature’s budget-writing Joint Committee on Finance has been holding meetings in May and June to approve state Fiscal Year 2025-2027 budgets for various state government agencies. Once the committee has done its work, their work will be consolidated into FY2025-2027 budget legislation, which the full Assembly and Senate will vote on. As the current fiscal year ends on June 30, the Legislature generally attempts to send a budget bill to the Governor for his consideration by the end of June. However, if there are delays with the legislative process or the Governor vetoes the budget legislation in full, state government will continue to operate on existing funding levels until the Governor signs a FY2025-2027 budget bill into law.

In late April, the Department of Health Services (DHS) issued a press release that analyzed the impact of potential federal Medicaid budget cuts on Wisconsin. This analysis is based on federal budget reconciliation legislation that the U.S. House of Representatives approved on May 22.  The following elements of this legislation, which has not yet been approved by the U.S. Senate (as this is written), will likely be of interest to WiAHC:

·        Per-Person Funding Limit– Currently, the federal government provides funding to states based on a percentage of Medicaid costs. This legislation proposes to instead provide a set amount of funding per Medicaid beneficiary. This could cost the State of Wisconsin up to $16.8 billion in federal funds over a decade.

·        Administrative Costs – This funding pays for information technology and for staff to review Medicaid claims and pay health care providers, among other things. This could cost the State of Wisconsin up to $93 million each year.

·        Work Requirement – Such a requirement would likely require able-bodied adults without children to provide proof that they are working in order to receive Medicaid benefits. DHS estimates that the agency would incur up to $6 million in administrative costs to comply with such a requirement. Any employment and training requirements that DHS may need to provide to help Medicaid beneficiaries meet these requirements could cost $60 million annually. 

On June 4, the Wisconsin Department of Health Services issued a press release noting that the agency maintains their recommendation that pregnant women and everyone 6 months or older should obtain the COVID-19 vaccine in order to prevent serious illness and to stop the spread of COVID-19. The press release also referenced that this vaccine has previously gone through rigorous review processes on the federal level and that the recent change in Centers for Disease Control and Prevention (CDC) guidance on this vaccine was “not made based on new data, evidence, or scientific or medical studies.” 

Further, this release notes that the Medicaid program in Wisconsin will continue to cover the existing COVID-19 vaccine for eligible Medicaid program participants.

The Wisconsin Department of Health Services (DHS) has announced that they will hold the state’s only substance use prevention conference on September 10-11, 2025, at the Chula Vista Resort in Wisconsin Dells. There will also be a virtual option for those who are not able to attend in-person.  According to the DHS website, the objectives of this event are to:

• Enhance knowledge of substance use prevention initiatives and resources across Wisconsin
• Strengthen collaboration and networking among substance use prevention professionals
• Develop practical substance use prevention strategies

For more information and to register, please visit the DHS website. Please note that the registration deadline is August 15.