So by now you know the themes in the Wisconsin State Budget.  It was crafted mostly in secret.  Several versions have passed in the middle of the night to avoid press scrutiny.  It contains bunches of non-fiscal policy items that have nothing to do with the actual budget, which makes Democrats’ claims about how “tough” a budget it was to pass almost laughable.  The budget raises taxes by something nearing $5 billion, which gives taxpayers about the same chance as a hot Argentinian woman has from escaping Mark Sanford.

Just because we all know these things, however, doesn’t mean it’s not worth continuing to point out the most egregious examples of special interest non-fiscal policy.  Take, for instance, a small law change inserted for the benefit of chiropractors.

Under current law, health insurance plans in Wisconsin have to cover chiropractic care. (More on this later.)  In order to be paid by the insurance company, the chiropractor charges copayment, coinsurance, or deductibles, then submits all the paperwork to the insurance company.

Under a small provision snuck into the budget (p. 29 of this document), chiropractors could waive copayment, coinsurance, or deductibles to patients, but also couldn’t be reimbursed by insurance companies for the amount that is waived.  While a small change, it could mean big business for chiropractors.

You see, doctors would not have the option to waive these fees and have them deducted from their insurance payments.  Therefore, it gives chiropractors a distinct competitive advantage over doctors – it makes their office visit cheaper to someone deciding whether to see a doctor or a chiropractor.  The chiros won’t mind being able to charge less up front, as they will be signing up a long term customer.  In essence, they can now undercut the competition, where they couldn’t before.

Now, you may be saying to yourself: “What does any of that have to do with the state budget?”  The answer, of course, is: nothing.  It has no fiscal effect whatsoever – it is merely a policy change meant to benefit one special interest group at the expense of another.

So how did that provision get in there?  Who put it there?  What effect will it have on health care?  Anyone?  Anyone?  Was there actually some legislator who heard from constituents asking them to give chiropractors a competitive advantage over doctors?  (Oh, and by the way – if you could get around to clearing up that $6.6 billion deficit, that would be great, too.)

What’s clear is this – a naked special interest giveaway of that kind probably wouldn’t pass as separate legislation, so it was buried in the budget to avoid scrutiny.  So far, so good – there appears to have been nothing written about it in the press.

What’s interesting is that chiropractors have the clout in the Capitol that they do in large part because state law granted it to them.  Years ago, the State Legislature mandated that all health insurance plans must cover chiropractic services – thereby raising the cost of insurance on everyone else.  This government protection scheme seems to have been lucrative for the chiropractors, as they have now become one of the most prominent lobbying organizations in Madison.

Several years ago, a couple state legislators began to take a hard look at removing the chiropractic mandate, in an effort to make health care more affordable.  The chiropractors began a coordinated campaign to flood legislative offices with faxes – each Capitol office got hundreds of faxes a day, jamming up their fax machines and causing legislative staffers to devote their whole day to minding the reams of faxes that flooded in.  After a few days, legislators relented and the faxes stopped coming.  The chiropractic mandate was safe.  (You may have missed the chapter on “guerilla tactics to protect your government-granted monopoly” in “How a Bill Becomes a Law.)

When this budget is passed and the autopsy is completed, it will be interesting to find out how this provision made it in.  Although we may not know for sure until the chiropractors start pumping some of their government-granted protection money back into the campaigns of legislative Democrats.  Funny how the Dems are anti-business until they run into one with a hefty campaign account.