AB 232

Under current law, a county or elected governing body of a federally recognized

American Indian tribe or band (county or tribe) may retain a portion of incorrect

overpayments in public assistance programs administered by the Department of

Health Services (DHS), including Medical Assistance and the supplemental

nutrition assistance program (known as FoodShare in Wisconsin), that are recovered

as the result of the efforts of an employee or officer of the county or tribe. Currently,

DHS establishes by rule the portion of FoodShare overpayment recoveries that a

county or tribe may retain. Under the bill, a county or tribe may retain the full

amount of FoodShare overpayment recoveries that the state is permitted to retain

under federal law. Current law also allows a county or tribe to retain a portion of

incorrect overpayments that are recovered in Wisconsin Works program as the result

of the efforts of an employee or officer of the county or tribe. Under current law,

Milwaukee County may not retain a portion of incorrect payments that are recovered

as a result of the efforts of an employee or officer of the county.

Under the bill, DHS is required to establish an optional incentive program, by

rule, under which a county with a population of less than 750,000 or tribe receives

a reward payment if an employee or officer of the county or tribe identifies fraudulent

activity in Medical Assistance or FoodShare. Under the bill, the amount of the

reward payment under the program is 20 percent of the amount that DHS

determines will be saved in the program over a 12-month period as the result of

eliminating the identified fraudulent activity. The bill also provides that, if a county

or tribe receives a reward payment under the optional incentive program, the county

or tribe may not retain overpayments that are recovered as the result of the identified

fraudulent activity. Under the bill, the Department of Children and Families is

required to establish a similar incentive program, by rule, that applies to fraudulent

activity in Wisconsin Works that is identified by an employee or officer of a county

or tribe.