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Provider Manual

Improper billing of Medicaid Managed Care members

Last Updated on April 14, 2026

Security Health Plan’s provider contract does not allow providers to bill members unless conditions outlined in ForwardHealth Topic #227 have been met. If Security Health Plan is made aware that a Medicaid Managed Care member has been improperly billed, we will contact your billing office. Providers must agree to remove the balance from the member’s account immediately. If the member has already paid the improperly billed amount, providers must agree to reimburse the member within 60 calendar days of contact with your billing office.

Security Health Plan’s Provider Experience and Provider Contracting teams track complaints made against providers for improperly billing members. If a single pay-to provider has more than three complaints logged in a quarter or six times in a rolling year, Security Health Plan will begin corrective action, which in extreme cases, could include provider termination from the Health Plan. 

Conditions that must be met to bill the member

(ForwardHealth Topic #227)

“A member may request a noncovered service, a covered service for which PA was denied (or modified), or a service that is not covered under the member's limited benefit category. The charge for the service may be collected from the member if the following conditions are met prior to the delivery of that service: 

  • The member accepts responsibility for payment. 
  • The provider and member make payment arrangements for the service. 

Providers are strongly encouraged to obtain a written statement in advance documenting that the member has accepted responsibility for the payment of the service. 

Furthermore, the service must be separate or distinct from a related, covered service. For example, a vision provider may provide a member with eyeglasses but then, upon the member's request, provide and charge the member for anti-glare coating, which is a noncovered service. Charging the member is permissible in this situation because the anti-glare coating is a separate service and can be added to the lenses at a later time.” 

For information on conditions that must be met to bill the member, see the Physicians Handbook www.forwardhealth.wi.gov/WIPortal/ 

  1. Click on “Online Handbooks”
  2. Click “I Accept” and submit agreement
  3. Under “Program”, select “BadgerCare Plus & Medicaid”
  4. Under “Service Area”, select “Physician”
  5. Select “Reimbursement”
  6. Select “Collecting Payment From Members”
  7. Select “Conditions That Must Be Met”

Security Health Plan contract language 

“Subcontractor agrees not to bill BadgerCare Plus and/or Medicaid SSI members for medically necessary services covered under this Contract and provided during the members’ period of HMO enrollment. Subcontractor also agrees not to bill members for any missed appointments while the members are eligible under the BadgerCare Plus and/or Medicaid SSI Programs. This provision will remain in effect even if the HMO becomes insolvent. However, if a member agrees in writing to pay for a noncovered service, then the HMO, HMO provider, or HMO subcontractor can bill. The standard release form signed by the member at the time of services does not relieve the HMO and its providers and subcontractors from the prohibition against billing a BadgerCare Plus or Medicaid SSI member in the absence of a knowing assumption of liability for a non-covered service. The form or other type of acknowledgment relevant to BadgerCare Plus or Medicaid SSI member liability must specifically state the admissions, services, or procedures that are not covered by BadgerCare Plus or Medicaid SSI.”