LRB-3665/1
PJK:jld:rs
2011 - 2012 LEGISLATURE
February 10, 2012 - Introduced by Representatives Nygren, Ballweg, Bies,
Jacque, Kaufert, Knudson, LeMahieu, Marklein, A. Ott, Rivard, Petersen,
Severson, Steineke, Strachota, Van Roy, Wynn and Vos, cosponsored by
Senators Lasee and Cowles. Referred to Committee on Insurance.
AB553,1,2
1An Act to create 49.45 (4m) and 224.42 of the statutes;
relating to: matching
2financial records for Medical Assistance eligibility and providing a penalty.
Analysis by the Legislative Reference Bureau
Under current law, the Department of Health Services (DHS) administers the
Medical Assistance (MA) program, under which DHS, among other things, provides
health care benefits to low-income families and individuals. Federal law requires
each state to implement an asset verification program for purposes of determining
eligibility for MA. This bill requires DHS to operate a financial record matching
program (program) for MA applicants and recipients for whom asset verification is
required for eligibility for MA. Under the program, financial institutions in this state
must enter into agreements with DHS to participate in a financial institution
matching option or a state matching option. DHS must pay such a financial
institution up to $125 per calendar quarter for participating.
Under the financial institution matching option, at least once every calendar
quarter DHS sends information to the financial institution, including names,
addresses, and social security numbers, about MA applicants, recipients, and other
individuals whose resources are required by law to be disclosed to determine the
eligibility of an MA applicant or recipient. The financial institution determines
whether any MA applicant, recipient, or other individual has an ownership interest
in an account at the financial institution and, if so, sends DHS information about the
account, such as the type, number, and balance.
Under the state matching option, at least once every calendar quarter the
financial institution sends DHS information about accounts maintained at the
financial institution, including the name and social security number of each person
having an ownership interest in each account. On the basis of that information, DHS
determines whether any MA applicant, recipient, or other individual has an
ownership interest in an account at the financial institution and, if so, may request
further information from the financial institution, including the person's address of
record and the account balance.
The bill prohibits DHS from disclosing or retaining information concerning
account holders who are not MA applicants, recipients, or other individuals;
prohibits employees, agents, officers, and directors of financial institutions from
disclosing or retaining information concerning MA applicants, recipients, or other
individuals; and prohibits both DHS and financial institutions from using any
information received under the program for any purpose not related to the program
or administering MA. The bill provides penalties for any employee, agent, officer, or
director of a financial institution who violates any of the prohibitions. The bill also
provides that a financial institution is not liable for disclosing financial information,
or taking other action, in compliance with the program.
The Department of Children and Families operates a similar financial record
matching program with financial institutions for individuals who are obligated to
pay court-ordered child support.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB553, s. 1
1Section
1. 49.45 (4m) of the statutes is created to read:
AB553,2,32
49.45
(4m) Financial record matching program. (a)
Definitions. In this
3subsection:
AB553,2,64
1. "Account" means a demand deposit account, checking account, negotiable
5withdrawal order account, savings account, time deposit account, or money market
6mutual fund account.
AB553,2,77
2. "Applicant" means an individual applying for benefits under this subchapter.
AB553,2,88
3. "Financial institution" has the meaning given in
12 USC 3401 (1).
AB553,2,109
4. "Other individual" means an individual whose resources are required by law
10to be disclosed to determine the eligibility of an applicant or recipient.
AB553,3,2
15. "Recipient" means an individual who receives benefits under this
2subchapter.
AB553,3,63
(b)
Matching program and agreements. 1. The department shall operate a
4financial record matching program under this subsection for the purpose of verifying
5the assets of applicants, recipients, and other individuals with respect to any
6program under this subchapter that requires asset verification.
AB553,3,157
2. The department shall enter into agreements with financial institutions
8doing business in this state to operate the financial record matching program under
9this subsection. An agreement shall require the financial institution to participate
10in the financial record matching program by electing either the financial institution
11matching option under par. (c) or the state matching option under par. (d). Any
12changes to the conditions of the agreement shall be submitted by the financial
13institution or the department at least 60 days before the effective date of the change.
14The department shall furnish the financial institution with a signed copy of the
15agreement.
AB553,3,1816
3. The department shall reimburse a financial institution up to $125 per
17calendar quarter for participating in the financial record matching program under
18this subsection.
AB553,3,2119
4. To the extent feasible, the information to be exchanged under the matching
20program shall be provided by electronic data exchange as prescribed by the
21department in the agreement under subd. 2.
AB553,3,2422
(c)
Financial institution matching option. If a financial institution with which
23the department has an agreement under par. (b) elects the financial institution
24matching option under this paragraph, all of the following apply:
AB553,4,5
11. At least once each calendar quarter, the department shall provide to the
2financial institution, in the manner specified in the agreement under par. (b) 2.,
3information regarding applicants, recipients, and other individuals. The
4information shall include names and social security or other taxpayer identification
5numbers.
AB553,4,186
2. Based on the information received under subd. 1., the financial institution
7shall take actions necessary to determine whether any applicant, recipient, or other
8individual has an ownership interest in an account maintained at the financial
9institution. If the financial institution determines that an applicant, recipient, or
10other individual has an ownership interest in an account at the financial institution,
11the financial institution shall provide the department with a notice containing the
12applicant's, recipient's, or other individual's name, address of record, social security
13number or other taxpayer identification number, and account information. The
14account information shall include the account number, the account type, the nature
15of the ownership interest in the account, and the balance of the account at the time
16that the record match is made. The notice under this subdivision shall be provided
17in the manner specified in the agreement under par. (b) 2. and, to the extent feasible,
18by an electronic data exchange.
AB553,4,2119
(d)
State matching option. If a financial institution with which the department
20has an agreement under par. (b) elects the state matching option under this
21paragraph, all of the following apply:
AB553,5,522
1. At least once each calendar quarter, the financial institution shall provide
23the department with information concerning all accounts maintained at the
24financial institution. For each account maintained at the financial institution, the
25financial institution shall notify the department of the name and social security
1number or other tax identification number of each person having an ownership
2interest in the account, together with a description of each person's interest. The
3information required under this subdivision shall be provided in the manner
4specified in the agreement under par. (b) 2. and, to the extent feasible, by an
5electronic data exchange.
AB553,5,126
2. The department shall take actions necessary to determine whether any
7applicant, recipient, or other individual has an ownership interest in an account
8maintained at the financial institution providing information under subd. 1. Upon
9the request of the department, the financial institution shall provide to the
10department, for each applicant, recipient, or other individual who matches
11information provided by the financial institution under subd. 1., the address of
12record, the account number and account type, and the balance of the account.
AB553,5,2413
(e)
Use of information by financial institution; penalty. A financial institution
14participating in the financial record matching program under this subsection, and
15the employees, agents, officers, and directors of the financial institution, may use
16information received from the department under par. (c) only for the purpose of
17matching records and may use information provided by the department in
18requesting additional information under par. (d) only for the purpose of providing the
19additional information. Neither the financial institution nor any employee, agent,
20officer, or director of the financial institution may disclose or retain information
21received from the department concerning applicants, recipients, or other
22individuals. Any person who violates this paragraph may be fined not less than $50
23nor more than $1,000 or imprisoned in the county jail for not less than 10 days or
24more than one year or both.
AB553,6,7
1(f)
Use of information by department. The department may use information
2provided by a financial institution under this subsection only for matching records
3under par. (d), for administering the financial record matching program under this
4subsection, and for determining eligibility or continued eligibility under this
5subchapter. The department may not disclose or retain information received from
6a financial institution under this subsection concerning account holders who are not
7applicants, recipients, or other individuals.
AB553,6,118
(g)
Financial institution liability. A financial institution is not liable to any
9person for disclosing information to the department under this subsection or for any
10other action that the financial institution takes in good faith to comply with this
11subsection.
AB553, s. 2
12Section
2. 224.42 of the statutes is created to read:
AB553,6,14
13224.42 Disclosure of financial records for Medical Assistance
14eligibility. (1) Definitions. In this section:
AB553,6,1515
(a) "Financial institution" has the meaning given in
12 USC 3401 (1).
AB553,6,1616
(b) "Financial record" has the meaning given in
12 USC 3401 (2).
AB553,6,19
17(2) Financial record matching agreements. A financial institution is required
18to enter into an agreement with the department of health services under s. 49.45
19(4m).
AB553,6,21
20(3) Limited liability. A financial institution is not liable for any of the
21following:
AB553,6,2422
(a) Disclosing a financial record of an individual or other information to the
23department of health services in accordance with an agreement, and its participation
24in the program, under s. 49.45 (4m).
AB553,7,1
1(b) Any other action taken in good faith to comply with s. 49.45 (4m).
