Bill would boost Medicaid rates for physical health services, create acupuncture benefit

A bill that would increase Medicaid rates for physical health services providers and create a new benefit for acupuncture got a public hearing Tuesday before the Assembly Committee on Health.

The bill would increase an appropriation for the Joint Finance committee by $500,000 in each state fiscal year of the biennium for the rate increase. The Department of Health Services would have to submit a plan to the committee for funding.

“Physical health treatment can play a major role in initially preventing opioid addiction,” Rep. John Nygren, R-Marinette, told committee members. “Providing reimbursement for the treatments will help incentivize them as an alternative path.”

The bill is similar to a measure that Gov. Tony Evers vetoed in the state budget. However, that plan didn’t include Medicaid coverage of acupuncture.

In his veto message, Evers said he objected to the appropriation since the state didn’t take federal money to expand Medicaid. He said that resources should go toward expanding patient care first before raising rates for providers.

The state’s 2017-19 state budget required DHS to study the impact of physical health services on prescription and over-the-counter drug use by Medicaid members.

The agency found that acupuncture was one of the only services that could be used for chronic pain not currently covered by Medicaid, according to DHS Chief Medical Officer Dr. Steve Tyska.

“While there’s still a great deal to be done, the state is seeing progress related to the opioid epidemic as evidenced by the declining number of opioid prescriptions being written by providers as well as a decrease in the number of opioid-related deaths,” he said. “The department believes that this legislation builds on those successes and gives Medicaid patients additional treatment options, which may allow them to decrease their use of opioids.”

Chiropractors, physical therapists and acupuncturists testified in support of the measure.

“It is an important first step in opening the door for acupuncture coverage in Wisconsin,” said Kelly Hora, legislative committee chair for the Wisconsin Society of Acupuncturists. “Acupuncture is safe, non-addicting and evidence-based.”

According to a fiscal note from DHS, creating a benefit for acupuncture would increase state spending by an estimated $1.3 million, and draw down an additional $1.9 million in federal dollars.

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