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Children and Families -- TANF and Economic Support Programs (Paper #211) Page 7 Estimated Cost of Proposed Changes to Wisconsin Shares Eligibility ($ in Millions) Threshold

Federal Poverty level

Initial 210% 220% 210% 225% Phaseout 200 200 210 225

Estimated Cost $3.0 $5.5 $15.0 $35.5 Alternative D1a D1b D2a D2b

30. Alternative D1a and D1b would expand the initial eligibility for Wisconsin Shares subsidies to 210% and 220% of the FPL, respectively. In both cases, the phaseout threshold for the calculation of the subsidy would remain at 200% of the FPL, and as a result, the expanded eligibility would qualify for only the reduced subsidy amounts. 31. On the other hand, as discussed above, it is unclear whether these alternatives would comply with federal regulations restricting copayments to no more than 7% of a participating family's income. 32. Alternatives D2a and D2b would expand both the initial eligibility and phaseout thresholds to 210% and 225% of the FPL, respectively. Unlike Alternatives D1a and D1b, the newly eligible participants would qualify for full subsidy amounts until their incomes exceed the phaseout threshold. As a result, the estimated costs of these alternatives are larger. 33. Finally, the Committee could decide that it is unnecessary to increase eligibility for the program given the increase in the cost to continue subsidies under current law and the costs of other changes made under the other items listed above [Alternative D3]. ALTERNATIVES A. Cost to Continue 100% FPL Copayment Waiver 1. Provide $2,176,700 FED annually to support the cost of continuing the Wisconsin Shares policy of waiving copayments for families with incomes of 100% of the FPL or less.

2. Reduce funding by $4,353,300 FED annually and require DCF to end its policy to waive copayments for families with incomes of 100% of the FPL or less. ALT A1 Change to Base

FED $4,353,400 ALT A2 Change to Base

FED -$8,706,600