The Wisconsin Court of Appeals recently upheld the dismissal of an appeal filed by Kristy Stewart against the Wisconsin Department of Health Services (DHS). The case, Kristy Stewart v. Wisconsin Department of Health Services, was decided on June 18, 2026. The court's ruling affects individuals who receive billing notices for room and board costs under county-administered programs, particularly those with disabilities.
In this case, Stewart challenged final billing notices she received from the Sauk County Department of Human Services. These notices directed her to pay debts for room and board costs associated with a county-administered program. After receiving an adverse ruling from an administrative law judge (ALJ), Stewart sought to appeal the decision to the DHS. However, the department dismissed her objection, stating she did not have the right to an administrative appeal. The court's decision clarifies the conditions under which individuals can appeal such billing notices.
Kristy Stewart is a resident of Sauk County and has a disabling mental illness. Before January 2023, she was enrolled in a comprehensive community services program that covered her room and board costs at a community-based residential facility. In January 2023, she transitioned to a community support program, which the county claimed required her to contribute to her room and board expenses.
The county sent Stewart multiple billing notices, including one labeled as a “FINAL NOTICE,” demanding payment of $1,390.80. The notice warned that a collection fee would be added to any past due balances sent to a collection agency. In September 2023, Stewart, through her attorney, filed an appeal with the state Division of Hearings and Appeals, seeking a hearing before an ALJ to review the county's billing notices.
During the administrative hearing held in February 2024, the ALJ ruled that the county had the authority to require Stewart to pay the room and board costs. Stewart then filed an objection to this ruling with the DHS. However, the department dismissed her objection, stating that she was not entitled to an administrative appeal because she had not received an order to compel payment from the DHS.
The court ruled that Stewart did not identify an order to compel payment issued by either the county or the DHS, which is necessary to trigger her right to an administrative review. The court stated, “We affirm the Department’s decision that Stewart cannot pursue administrative review by the Department under WIS. STAT. § 46.10.” The judges involved in this ruling were Graham, Blanchard, and Taylor.
This ruling means that, going forward, individuals like Stewart may have limited options for appealing billing notices related to room and board costs under county-administered programs. The court's decision emphasizes the importance of having a formal order to compel payment to qualify for an administrative appeal. This ruling could impact future cases involving similar disputes over billing notices and administrative appeals.
As for what’s next, Stewart has the option to appeal the court's ruling to the Wisconsin Supreme Court. The court's decision also raises questions about the clarity of the process for appealing billing notices and whether further legislative action may be needed to address these issues.