Wisconsin SB 1162: Relating to: eliminating recovery by the state for birth expenses paid through the Medical Assistance program. (FE)

Bill Text

2025 - 2026 LEGISLATURE LRB-6590/1
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2025 SENATE BILL 1162
March 19, 2026 - Introduced by Senators L. JOHNSON, ROYS, RATCLIFF and
HESSELBEIN, cosponsored by Representatives STUBBS, MOORE OMOKUNDE,
ARNEY, GOODWIN, HONG, SINICKI, PALMERI and MAYADEV. Referred to
Committee on Insurance, Housing, Rural Issues and Forestry.
AN ACT to amend 49.45 (19) (a), 49.45 (19) (c), 767.804 (3) (d) 1., 767.805 (4) (d)
1. and 767.89 (3) (e) 1.; to create 49.22 (9m) of the statutes; relating to:
eliminating recovery by the state for birth expenses paid through the Medical
Assistance program.
Analysis by the Legislative Reference Bureau
This bill prohibits the state from seeking recovery of birth expenses paid by
the state through the Medical Assistance program on behalf of an unmarried
person who gave birth and was a Medical Assistance recipient at the time of the
birth. The bill also prohibits a court from including in a judgment or order relating
to paternity an order for a father to pay for the recovery of such expenses paid by the
state under the Medical Assistance program. Under current law, a court must
include in a paternity order an order establishing the amount of the father’s
obligation to pay or contribute to up to half of the actual and reasonable pregnancy
and birth expenses, taking into account the father’s income and ability to pay. Also
under current law, a person applying for Medical Assistance, as a condition of
eligibility for Medical Assistance, is deemed to have assigned to the state any rights
to medical support or other payment of medical expenses from any other person,
which includes the right to recovery of birth expenses. Further, under current law,
if the mother of a child was enrolled in a health maintenance organization or other
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prepaid health care plan under the Medical Assistance program at the time of the
child’s birth, the state could seek to recover from the father the birth expenses
incurred by the health maintenance organization or other prepaid health care plan.
This bill prohibits the state from seeking recovery of these expenses and prohibits a
court from ordering recovery of these expenses on behalf of the state.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SECTION 1. 49.22 (9m) of the statutes is created to read:
49.22 (9m) Neither the department nor its designee may seek recovery from
an alleged father of pregnancy or birth expenses paid by the state under the
Medical Assistance program on behalf of an unmarried person who gave birth and
who was a recipient of Medical Assistance at the time of the birth.
SECTION 2. 49.45 (19) (a) of the statutes is amended to read:
49.45 (19) (a) As Except as provided in par. (c), as a condition of eligibility for
medical assistance, a person shall, notwithstanding other provisions of the
statutes, be deemed to have assigned to the state, by applying for or receiving
medical assistance, any rights to medical support or other payment of medical
expenses from any other person, including rights to unpaid amounts accrued at the
time of application for medical assistance as well as any rights to support accruing
during the time for which medical assistance is paid.
SECTION 3. 49.45 (19) (c) of the statutes is amended to read:
49.45 (19) (c) If the mother of a child was enrolled in a health maintenance
organization or other prepaid health care plan under medical assistance at the time
of the child’s birth, The state may not seek recovery of birth expenses that may be
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recovered by the state under this subsection are the birth expenses incurred by the
health maintenance organization or other prepaid health care plan.
SECTION 4. 767.804 (3) (d) 1. of the statutes is amended to read:
767.804 (3) (d) 1. An order establishing the amount of the father’s obligation
to pay or contribute to the reasonable expenses of the mother’s pregnancy and the
child’s birth, except that the court may not order a father to pay expenses under this
subsection for the recovery of expenses paid by the state under the Medical
Assistance program on behalf of an unmarried person who gave birth and who was
a recipient of Medical Assistance at the time of the birth. The amount established
may not exceed one-half of the total actual and reasonable pregnancy and birth
expenses. The order also shall specify the court’s findings as to whether the father’s
income is at or below the poverty line established under 42 USC 9902 (2), and shall
specify whether periodic payments are due on the obligation, based on the father’s
ability to pay or contribute to those expenses.
SECTION 5. 767.805 (4) (d) 1. of the statutes is amended to