State legislators received some unwelcome news Monday when the federal government requested Wisconsin return $61.7 million.
The demand came as a result of the state's misappropriation of the funds, which were intended to benefit nursing homes, according to Peggy Handrich, administrator of the Wisconsin Division of Health Care Financing.
The money came through a process called intergovernmental transfers, which Wisconsin used to pay $104 million to the state's nursing homes for the costs of patients.
Though Handrich said the money was used appropriately, the federal government decided Wisconsin had not thoroughly documented the funded programs.
The federal government had originally asked Wisconsin to return $83.1 million, but a settlement was reached Monday, Handrich said, adding that the state would not have to pay the money back immediately. Instead, the federal government will withhold portions of future grants to Wisconsin.
