Premium Hike for BadgerCare Plus Basic Plan

Wisconsin's Department of Health Services announced in an Operations Memo dated July 15 that premiums for the BadgerCare Plus Basic Plan would once again be increasing, this time to $250 per month. The first premium payment reflecting the increase will be due August 5, 2011 for September coverage.

DHS is relying on the language in a Wisconsin Statute to justify the increase, saying that the revenue collected through premium payments is not sufficient to cover the cost of the program. Recall, premiums for Basic were increased from $130 to $200, with the first $200 premium payment due May 5, 2011 for June coverage. (Note, this July 15 operations memo incorrectly stated that the May premium was for “July” coverage instead of June coverage.)
The premium increases may help explain the drop of approximately 950 individuals from April through June (the most recent data available from DHS). An individual on the BadgerCare Plus Basic Plan with an income at 100% FPL will easily be paying 27.5% of his annual income in Basic Plan premiums.
The increased premium will be reflected on the premium payment slip sent in July. Members who made advanced payments will not be required to pay an increased amount until the months for which they have prepaid have ended. To see a sample of the notice Basic members will receive in the US Mail announcing the premium change, see pages 3 & 4 of the attachment.