The state’s Joint Committee on Finance approved a controversial budget provision Wednesday that would allow the state to use spouse and family assets to pay for costs incurred by a deceased family member who has received Medicaid care.
The provision already passed in the state budget bill, but the state Legislature required the provision to pass the JFC before it could be fully implemented. The committee passed the provision with limited changes in a 10-6, cross-party vote.
Under the provision, the state could use property the deceased individual owned prior to his or her death to pay for the Medicaid-financed care the person received while alive. The state can only take action after both the cared-for individual and his or her spouse dies.
Proponents of the provision argue the state will be able to save taxpayer money by deducting costs directly from the deceased’s assets, instead of relying on taxpayers. Critics say they are concerned the rule will infringe on family’s personal inheritances.
State Rep. Cory Mason, D-Racine, voted against the rule, saying he has heard from constituents, ranging from family farmers to small business owners, who have said they are concerned about the potential for lost inheritances.
“[The rule] is going to have dire consequences for members of our community,” Mason said.
State Rep. John Nygren, R-Marinette, co-chairs the committee and co-authored the slight changes to the provision, saying he made his decision based on fairness.
“We can’t make [the rule] fair for everyone so they are going to inherit their parents’ assets,” Nygren said. “We’re trying to make it fair for the taxpayer.”
