The administrative rule will allow the implementation of a Medicaid expansion of family planning services to single women ages 15 to 44 that have annual incomes below 185% of the federal poverty level. As directed by statute, the Department applied and received federal approval for this expansion of MA eligibility.

Currently, Medicaid and BadgerCare cover women below 185% of the federal poverty level who are either pregnant or have children. However, low-income women without children are not eligible for Medicaid or BadgerCare. Low-income women who do not qualify for these programs are unlikely to have either employer-provided insurance coverage, or sufficient personal funds to purchase family planning and reproductive health services in the private sector. They are therefore at a higher risk of unintended pregnancy. If a woman with an income below 185% federal poverty level becomes pregnant, Medicaid or BadgerCare would pay for birth costs, first year costs of the child, and other child cost and the cost for the mother.

The family planning waiver is a five-year demonstration project that will provide family planning services and ancillary family planning services, on a fee-for-service basis, to any woman between the ages of 15 and 44 whose family income does not exceed 185% of the federal poverty level. Funding for the family planning services will be funded 90% FED and 10% GPR. Funding for covered ancillary family planning services will be funded at the Medicaid matching rate.

By preventing unintended pregnancies and therefore preventing low-income women from becoming eligible for Medicaid or BadgerCare, the cost to Medicaid and BadgerCare is reduced. In the first three years years of operation, it is projected that the cost of providing the family planning services will exceed the savings. However, over the five-year a period, allowing low-income women access to family planing services, will save BadgerCare and Medicaid $8,897,500 AF ($1,557,100 GPR). The net cost is $742,100 ($129,900 GPR) in FY03 and $1,638,100 AF ($286,700 GPR) in FY04. The Department estimates that enrollment at the end of the five year demonstration period will reach approximately 47,000 women.

The rules for the FPW program apply to the Department, to families that are applicants or recipients of the health care coverage provided by the family planning waiver and to county social service or human service departments that take applications and determine eligibility for the family planning waiver. The rules will not directly affect small businesses as “small business" is defined in s. 227.114 (1) (a), Stats.

NOTICE IS HEREBY GIVEN That pursuant to s. 39.435, Stats, the Higher Educational Aid Board will hold a public hearing to consider amendments to ss. HEA 5.04 and 5.05 and the emergency rule amending s. HEA 5.05 of the Wisconsin Administrative Code relating to the administration of the Talent Incentive Program Grant.

The public hearing will be held:

April 25, 2003 - 9:00 a.m. to 9:30 a.m.

State Capital, Room 201 SE

Madison, Wisconsin

The hearing is fully accessible to people with disabilities.

The 1989 Wisconsin Act 31 created s. 39.435 which provides for grants to Wisconsin residents who meet criteria established by the statute and administrative code. The Wisconsin Higher Educational Aids Board (HEAB) administers this program under s. 39.435 and under ch. HEA 5. Current rules contain some criteria that are no longer relevant or contain unclear language that may cause otherwise eligible residents to not be considered eligible. Revising the rules eliminates obsolete language and makes clarifications that will allow fair and equitable administration of the program for all Wisconsin residents.

Statutory Authority: s. 39.435, Stats. as created by 1989 a. 31.

The proposed rules concern a student financial aid program and have no affect upon small business in Wisconsin.

The proposed revisions cause no alterations in the present allocation of funds so there is no fiscal impact.

To request copies of the revised rules, or for more information, please contact:

John Whitt, Talent Incentive Program Grant Coordinator

Higher Education Aid Board

131 West Wilson St, P.O. Box 7885

(608) 266-1665

Madison, WI 53707-7885

john.whitt@heab.state.wi.us

Written Comments on the revised rules received at the above address no later than April 18, 2003 will be given the same consideration as testimony presented at the hearing.