PO. BOX 8952 MADISON, WI 53708 January 22, 2015 Senator Robert Cowles, Co-Chair Joint Legislative Audit Committee 118 South, State Capitol Madison, Wisconsin 53702 Representative Samantha Kerkrnan, C0-Chair Joint Legislative Audit Committee 315 North, State Capitol Madison, Wisconsin 53702 Dear Senator Cowles and Representative Kerkman, In light of serious concerns raised by recent news reports, we are writing you to request that the non? partisan Joint Legislative Audit Committee conduct a comprehensive, independent audit of Wisconsin?s Medicaid family planning providers, including Planned Parenthood of Wisconsin. In particular, we would appreciate a thorough investigation of their billing practices and an accounting of their utilization of the significant taxpayer dollars they receive at the state, federal and local levels of government. Media accounts within the past few months have highlighted audits by the Office of the Inspector General (01G) at the Department of Health Services for both NEWCAP and Wisconsin amin Planning Health Services (FPHS) which have produced red ?ags regarding program integrity. OIG determined that NEWCAP is responsible for overbilling the state by $1.2 million and Family Planning Health Services has overbilled $2.3 million, while several other states report similar findings with Planned Parenthood and other Medicaid family planning providers. In fact, $115 million has been documented nationwide in overpayments, a figure which likely represents only a fraction of the actual waste and fraud that is occurring. According to a Milwaukee onmal Sentinel article from December 12 of last year (attached), ?If the O?ice of the Inspector Genernl?s audits are correct, and if they are expanded in scope, the state would stand to collect tens of millions of dollars, further pointing out that the existing audits were for only two of the past five years and that Planned Parenthood is much larger than the organizations being audited. It is peculiar and deeplv troubling that any large recipient of taxpayer dollars would Ere-eruptiver divulge that they are guiltv of massivelv defrauding the government and activelv in violation with their billing practices. with no plans to change or reimburse taxpaversnand vet that is precisely what Planned Parenthood of Wisconsin has admitted to doing. Page 2 Planned Parenthood of Wisconsin is the largest abortion and family planning service provider in Wisconsin, with 23 clinics and a total income from taxpayers at the state and federal level of more than $14 million. According to Planned Parenthood of Wisconsin?s public policy director, Nicole Safar, Planned Parenthood of Wisconsin bills in the same way NEWCAP and FPHS are charged with doing and estimates that her organization would lose $4.5 million in annual revenue if they were to actually abide by DHS requirements. In addition to the overbilling for pharmaceuticals through the 340B program identified by 01G, we are requesting examination of whether the following wasteful or fraudulent practices are occurring, as has been identi?ed in other states: 1. Contraceptive overprescription through the use of mandatory, opt-out programs such as Pills by Mail and Quarterly Contraceptive Kits automatically mailed to Medicaid beneficiaries, resulting in stockpiling and packages being sent to women no longer using these contraceptives or no longer at their original address. 2. Prescribing and dispensing prescription contraceptives without medical authorization, for patients who have not been seen by a licensed clinician and without the required clinician signature. 3. Double-dipping by billing taxpayers for services without offsets that other entities are already paying them to provide. A very limited August 2012 audit of payments to Planned Parenthood of Wisconsin found that Planned Parenthood was billing for duplicate services, with the Wisconsin Department of Health and Family Services noting that the quantities of contraceptives billed by Planned Parenthood were excessive relative to the standard usage, or the dollar amount billed was inconsistent with the quantity billed. Thank you for taking time to consider our request. new. Mary Lazich State Senator 28?1 Senate District . .. 1 Scott Allen Devin LeMahieu State Representative State Senator 97th Assembly District District Ja gel Brandtjen State Representative Assembly District State Representative 83fd Assembly District James Edming State Representative 87th Assembly District {st/Va? C0 y' orlacher State Representative 33rd Assembly District Chris Kape State Representative District .. ti? oel Kleefisch HEW State Representative 38th Assembly District Tom Larson State Representative 67til Assembly District I 'he State Senator 11th Senate District State Senator f4 Distri BSEnno State Representativ 58th Assemb . "i m. In}; I Am I. 0b utton State Representative 13th Assembly District f, Terry I I State Representative 26th Assembly District ess?? Kremer State Representative wasth . Sembly District Bob Kulp - State Representativ 69th Assembly District .9 1 a, .l t/ r? State Representative 56? Assembly District Page 3 Page 4 State Representative State Representative 98th Assembly District 75th Assembly District . .. -. I ?Mike Rohrkaste {?ee Sa elippo State Representative r" State Representative 55th Assembly District 15th Assembly District Michael Schraa Ken Skowronski State Representative State Representative 53rd Arseniny Distrt 82? Assembly District John Spire? David Steffen State State Representative 85th Assembly Dismt 4'Eh Assembly District a af?g?v? a Jeremy Thiesfeldt Paul Tittl State Representative State Representative 52? Assembly District sembly District Tyler Vorpagel Robert Brooks State Representative State Representative 27th Assembly District 60th Assembly District Attachment: b9940762821?285669921.html I