Medicaid and FoodShare Partner Resources: Federal Changes
The budget reconciliation act (known as the 'One Big Beautiful Bill Act') passed July 4, 2025, included provisions that directly affect Wisconsin’s Medicaid and FoodShare programs. This page will be a central location where partner organizations can find updates and resources to stay informed about ongoing projects and current analysis.
We are also committed to sharing information with program members and will also announce some of the changes broadly, as appropriate, using channels like the Medicaid news webpage, FoodShare news webpage, social media, news releases, and email.
See Governor Evers' news release and the impact analysis (PDF).
What to know and do
Medicaid and FoodShare members should make sure their phone number, email, and mailing address on file are up to date by going to ACCESS (ACCESS in Spanish) or the smartphone app.
Keep going to the doctor and other appointments.
Medicaid impacts
As of June 2025, Medicaid provides health care coverage and services to approximately 1 million (or 1 in 5) Wisconsinites. The changes listed below will affect processes and services for some members, as well as impact the providers who are the backbone of the state’s health care system.
Many Wisconsinites work in jobs that don’t offer health insurance, and many others can’t work because of a health condition. A new Medicaid work requirement will mean these adults will have to report at least 80 hours per month of work, training, or volunteering.
Anticipated impact(s)
- Decrease in Medicaid coverage for people who miss paperwork deadlines or who are unable to meet the requirement
- Increased costs for Wisconsin to offer employment and training services, including implementing new systems, creating new correspondence, and augmenting staffing to support implementation
Projected timeline
Effective December 31, 2026
Current status
Awaiting federal guidance
Certain directed payments to Medicaid providers made through managed care organizations will be limited to 110% of the Medicare payment rate. Rates that are already higher than that amount will be brought back to that level gradually by 10 percentage points each year starting in 2028.
Anticipated impact(s)
Strain on provider network adequacy due to providers opting not to serve Medicaid members
Projected timeline
Annual 10 percentage point decreases will begin January 1, 2028
Current status
Planning for this change
Many Wisconsinites rely on community health care providers for family planning services, reproductive health, and related medical care, for their overall health care needs. The new law prohibits Medicaid payments for one year to such providers if they meet the definition of prohibited entity and provide abortions other than those provided if the pregnancy is the result of an act of rape or incest or to save the life of the pregnant woman.
Anticipated impact(s)
- Disruption of health care for those members who use these providers
- Potential to cause closure of these providers affecting Wisconsinites’ access to health care regardless of their health insurance, or financial instability for these providers
Projected timeline
Unknown
Current status
A preliminary injunction was issued July 28, 2025, pausing this provision from going into effect with respect to Planned Parenthood, but does not address other providers who may be subject to this ban
Sometimes people who are uninsured do not realize they can qualify for Medicaid until they have a health emergency and need immediate, urgent care like when they go to a hospital emergency department for care or need care at a nursing home. If someone is uninsured, a financial counselor with the provider will often work with them to determine if they can qualify for Medicaid. When people sign up for Medicaid, they are able to receive retroactive coverage to pay for care they received if they met all Medicaid rules during that time. Under the new law, Medicaid members can only receive retroactive coverage for two months instead of three months.
Anticipated impact(s)
- Fewer health care and nursing home costs being covered by Medicaid
- More medical debt for uninsured or underinsured Wisconsinites
- More costs being passed along to consumers by health care providers to make up for lost revenue
Projected timeline
Effective January 1, 2027
Current status
Awaiting federal guidance
The state’s hospital assessment is an important source of funding, matched by federal dollars, to pay providers who care for Medicaid patients. Under the new federal budget reconciliation act, states are not allowed to from create new or increased provider taxes, locking them into the current rates that providers already report as too low to cover the cost of care.
Gov. Evers signed the 2025-2027 state budget into law on July 3, 2025 (2025 Wisconsin Act 15 (PDF), in time to secure a final increase for Wisconsin’s hospital rates before the federal law was signed.
Anticipated impact(s)
- In the short term, the final increase in Wisconsin’s hospital provider tax in the current biennial budget will result in over $1.1 billion funding for hospitals per year.
- In the long term, those dollars will not keep pace with increasing health care costs and this method of addressing those costs was no longer an option.
Projected timeline
Increase enacted before passage of the federal budget reconciliation act
Current status
Currently working to implement the increased assessment amount
FoodShare impacts
FoodShare is Wisconsin’s Supplemental Nutrition Assistance Program (SNAP). FoodShare supports the food budgets of nearly 700,000 Wisconsinites, including seniors, kids, and families, with basic food necessities. Fighting hunger benefits our communities, prevents more costly health issues, and leads to Wisconsinites’ better success at work and in school.
Under the new law, the work requirement for FoodShare now applies to FoodShare members 18 through 64 if there is not a child under age 14 in their home.
Anticipated impact(s)
- Decrease in FoodShare enrollment for vulnerable individuals and families who miss paperwork deadlines or who are unable to meet the requirement
- Decrease in revenues for Wisconsin farmers, transportation vendors, and retail outlets where FoodShare benefits are used because fewer people will receive FoodShare benefits
- Increased costs to rework systems and train staff to process and monitor an influx of documentation
- Increased costs of $14.6 million for the FoodShare Employment and Training (FSET) Program
Projected timeline
Unknown
Current status
Awaiting federal guidance.
Under the new law, if a state’s payment error rate is above 6%, the state will be required to pay 5-15% of SNAP benefit costs, depending on their error rate. Based on the most recent year of benefit cost data (state fiscal year 2025), if Wisconsin’s error rate was over 6%, this would cost Wisconsin taxpayers between $68.5 million and $205.5 million annually.
Achieving and maintaining Wisconsin's historically low error rate while implementing other complicated provisions of the law will be challenging without additional state and county quality control staff. FoodShare quality control staff review cases before they are confirmed to identify and address errors. Investing in more quality control staff is the most cost-effective action Wisconsin can take to achieve and maintain an error rate below 6% and avoid more significant costs to Wisconsin taxpayers. If states achieve and maintain an error rate below 6% over the long-term, they do not have to pay for benefit costs. The Department of Health Services will need up to $11.4 million annually to hire 56 state quality control staff and provide funding to counties for quality control positions to review FoodShare cases before they are confirmed to identify and address errors.
Anticipated impact(s)
Increased costs of $11.4 million to hire additional quality control staff and make systems changes to achieve a low error rate over the long-term
Projected timeline
- Increased benefits cost sharing effective October 1, 2027
- Quality control investments needed October 1, 2025, when the 6% error rate threshold goes into effect
Current status
Planning for this change
Under the new law, the federal government will shift half of its share of administrative costs for running FoodShare to our state and counties, increasing Wisconsin’s share from 50% to 75%.
Anticipated impact(s)
Increased costs of $43.5 million each year with anticipated increases over time.
Projected timeline
Effective October 1, 2026
Current status
Planning for this change
This act eliminates the SNAP-ed program. This 30-year-old program provided funds to UW-Extension, Tribal nations, and other nutrition-focused community partners to educate Wisconsinites about healthy eating, physical activity, and shopping on a budget. For each $1 spent, it is estimated $10 was saved in long-term health care costs. The elimination of this program will reduce the policy, system, and environmental changes Wisconsinites need to live healthy lifestyles and make healthy choices.
Anticipated impact(s)
- Loss of $12 million annually starting October 1, 2025.
- Loss of community nutrition and health education across the state.
- Decreased health in families who no longer have an opportunity to access this knowledge.
Projected timeline
- Program ends: October 1, 2025
- Full program close-out by grantees: December 31, 2025
Current status
Preparing to end this program