Medicaid shortfall has shrunk to $35.5 million in Wisconsin

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State Capitol, Madison

State Capitol, Madison

MADISON (AP) — State health officials say Wisconsin’s Medicaid deficit has shrunk by nearly $337 million.

Department of Health Services officials estimated in June the Medicaid program would face a $372.3 million deficit in the coming year. In a letter to state lawmakers Friday, DHS Secretary Dennis Smith said the shortfall has shrunk to $35.5 million.

He attributed the decrease to $27 million the state received from the federal government for retroactive service claims. He noted, too, that fewer people have joined the state’s Family Care program since the Legislature lifted an enrollment cap in April than the agency anticipated.

He also pointed to changes to the BadgerCare Plus program that included higher premiums for some participants and making people ineligible if they have access to affordable health insurance through their employers.