Assembly Bill 163 proposes significant changes to the eligibility determination process for the Medical Assistance program in Wisconsin. The bill mandates that the Department of Health Services (DHS) must conduct eligibility redeterminations every six months, rather than automatically renewing eligibility. It also prohibits DHS from using prepopulated forms to provide information to recipients, except for their name and address. Additionally, recipients who fail to report changes affecting their eligibility within 10 days will be ineligible for benefits for six months from the date DHS discovers the failure to report. The bill requires DHS to seek federal approval if necessary to implement these changes.

Furthermore, the bill establishes new data-sharing agreements between DHS and other agencies that maintain financial or personal information databases. This will allow DHS to confirm applicants' information against these databases to ensure accurate eligibility determinations for public assistance programs. The bill also requires DHS to complete redeterminations for all Medical Assistance recipients and remove those deemed ineligible by January 1, 2026, while informing them of alternative health coverage options available through American health benefit exchanges.