What Medicaid Formula
 Changes Are Anticipated?
•WAHSA members are appreciative of the Governor’s efforts to increase the Medicaid nursing facility payment system and have agreed to fully support the funding increases contained in his budget. It must be understood, however, that the proposed 2001-03 budget would not dramatically improve the nursing facility payment system.
•The BDO Seidman report recommended increasing the Direct Care ceiling to 115% (now 100.33 %) and the Support Services and Administration ceilings to 110% (now 95% and 91.2%, respectively), which would move Wisconsin’s system closer to the nationwide averages. Under the Governor’s budget these ceilings are projected to be set 104% for Direct Care and at 95% for both Support Services & Administration.
•The proposed budget does not provide adequate funding to: rectify staffing shortages; meet optimal nursing staffing levels identified by the federal government; greatly increase staff wage/benefit packages; address provider concerns with the proposed elimination of the MA labor regions; or adequately fund a new payment system based on resident acuity.