Wisconsin DHS withdraws long term care proposal

(AP) — Major changes to Wisconsin's long-term care programs that would have moved away from nonprofit providers to for-profit insurance companies are being shelved following broad and forceful opposition from state lawmakers, consumers and other advocates.

State Department of Health Services Secretary Kitty Rhoades notified the co-chairs of the Legislature's budget-writing committee on Thursday that the planned changes were being withdrawn.

Under the shelved proposal, insurance companies would oversee both a patient's medical care and long-term help with things such as bathing, cleaning and cooking.

Walker spokesman Tom Evenson said the administration would continue to work on improving Medicaid services "in a cost effective way" and that details would be released in the next two-year state budget proposal early next year.

The Walker administration wants to reorganize the system so that medical care and long-term care would both be overseen by insurance companies who apply to become integrated health agencies, or IHAs.