First Substitute H.B. 401

Representative James A. Dunnigan proposes the following substitute bill:


             1     
ACCESS UTAH PROGRAM

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: James A. Dunnigan

             5     
Senate Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill establishes the Access Utah program to provide access to health care to certain
             10      individuals below the federal poverty level.
             11      Highlighted Provisions:
             12          This bill:
             13          .    updates language regarding the prohibition against Medicaid expansion to reflect
             14      current federal regulations;
             15          .    creates a two-year pilot program known as Access Utah to provide a defined
             16      contribution health benefit to individuals who are below the federal poverty level
             17      and who meet other need based requirements;
             18          .    establishes a coordinated care model for providing care in Access Utah; and
             19          .    instructs the Department of Health to:
             20              *    work with the Legislature's Health Reform Task Force to develop a     
             21      Section 1332 Medicaid waiver;
             22              *    submit an amendment of the Utah Premium Partnership and Primary Care
             23      Network waiver to the Centers for Medicare and Medicaid Services to
             24      incorporate the Access Utah program; and
             25          .    instructs the Health Reform Task Force to evaluate the proposals for coverage of the


             26      optional Medicaid population.
             27      Money Appropriated in this Bill:
             28          None
             29      Other Special Clauses:
             30          None
             31      Utah Code Sections Affected:
             32      AMENDS:
             33           26-18-18 , as enacted by Laws of Utah 2013, Chapter 477
             34      ENACTS:
             35           26-18-20 , Utah Code Annotated 1953
             36      Uncodified Material Affected:
             37      AMENDS UNCODIFIED MATERIAL:
             38      Uncodified Section 42, Laws of Utah 2013, Chapter 341
             39     
             40      Be it enacted by the Legislature of the state of Utah:
             41          Section 1. Section 26-18-18 is amended to read:
             42           26-18-18. Optional Medicaid expansion.
             43          (1) For purposes of this section:
             44          (a) "Optional expansion population" means individuals who:
             45          (i) do not qualify for the state's Medicaid program; and
             46          (ii) the Centers for Medicare and Medicaid Services within the United States
             47      Department of Health and Human Services would otherwise determine are eligible for funding
             48      at the enhanced federal medical assistance percentage available under PPACA beginning
             49      January 1, 2014.
             50          (b) PPACA is as defined in Section 31A-1-301 .
             51          (2) The department and the governor shall not expand the [state's] Medicaid program to
             52      the optional expansion population under PPACA unless:
             53          [(a) the Health Reform Task Force has completed a thorough analysis of a statewide
             54      charity care system;]
             55          [(b) the department and its contractors have:]
             56          [(i) completed a thorough analysis of the impact to the state of expanding the state's


             57      Medicaid program to optional populations under PPACA; and]
             58          [(ii) made the analysis conducted under Subsection (2)(b)(i) available to the public;]
             59          [(c)] (a) the governor or the governor's designee has reported the intention to expand
             60      the state Medicaid program under PPACA to the Legislature in compliance with the legislative
             61      review process in Sections 63M-1-2505.5 and 26-18-3 ; and
             62          [(d)] (b) notwithstanding Subsection 63J-5-103 (2), the governor submits the request
             63      for expansion of the Medicaid program for optional populations to the Legislature under the
             64      high impact federal funds request process required by Section 63J-5-204 , Legislative review
             65      and approval of certain federal funds request.
             66          Section 2. Section 26-18-20 is enacted to read:
             67          26-18-20. Access Utah -- Eligibility -- Defined contribution.
             68          (1) For purposes of this section:
             69          (a) "Access Utah" means the defined contribution program created in this section.
             70          (b) "Medically frail" means an individual who meets the criteria of 42 C.F.R. 440.315
             71      as determined by the department based on methodology administered by the department or
             72      another entity selected by the department.
             73          (c) "Optional expansion population" is as defined in Section 26-18-18 .
             74          (2) (a) The department shall establish a two-year pilot program known as "Access
             75      Utah," which shall:
             76          (i) begin on January 1, 2015, and end on January 1, 2017; and
             77          (ii) provide a defined contribution to eligible individuals in accordance with this
             78      section.
             79          (b) The department shall work with the Legislature's Health Reform Task Force to
             80      develop a Medicaid waiver proposal under Section 1332 of the Social Security Act to submit to
             81      the Centers for Medicare and Medicaid Services within the United States Department of Health
             82      and Human Services.
             83          (3) An individual is eligible for Access Utah if the individual:
             84          (a) (i) is in the optional expansion population and below 100% of the federal poverty
             85      level; and
             86          (ii) (A) is medically frail; or
             87          (B) is an adult with a dependent child; and


             88          (b) if funding permits, is an individual described in Subsection (3)(a)(i), but not in
             89      Subsection (3)(a)(ii).
             90          (4) (a) Within appropriations from the Legislature, the department shall offer to an
             91      eligible individual a defined contribution in an amount determined by the department.
             92          (b) An eligible individual shall use the defined contribution to purchase employer
             93      sponsored health insurance coverage if the individual is offered employer sponsored health
             94      insurance coverage.
             95          (c) If an eligible individual is not offered employer sponsored coverage, the individual
             96      may use the defined contribution to purchase:
             97          (i) a commercial health insurance policy; or
             98          (ii) access to a coordinated care model described in Subsection (5).
             99          (5) (a) The department may contract with public and private entities to provide or
             100      manage the delivery of a coordinated care model to an individual described in Subsection
             101      (4)(c)(ii).
             102          (b) The coordinated care model shall combine state and federal funding with charity
             103      care resources to:
             104          (i) provide, as funding permits, preventive care, outpatient care, pharmacy benefits,
             105      urgent and emergency care, and limited hospital benefits; and
             106          (ii) integrate physical health and behavioral health services.
             107          (6) The department shall evaluate and report to the Legislature's Health Reform Task
             108      Force on or before November 1, 2016, regarding:
             109          (a) the methods used to determine a medically frail individual and the number of
             110      medically frail individuals who enrolled in Access Utah;
             111          (b) access to and quality of care in Access Utah; and
             112          (c) whether Access Utah helped to facilitate enrollee self-sufficiency.
             113          (7) (a) Notwithstanding Section 26-18-18 , the department shall seek an extension of
             114      Utah's Primary Care Network and the Utah Premium Partnership 1115 Waiver from the
             115      Centers for Medicare and Medicaid Services within the United States Department of Health
             116      and Human Services in accordance with Subsection (7)(b).
             117          (b) The department may modify the Primary Care Network and The Utah Premium
             118      Partnership scope of benefits and eligibility criteria as part of the waiver request under


             119      Subsection (7)(a) if:
             120          (i) the department develops the waiver request in coordination with the Legislature's
             121      Health Reform Task Force and reports to the Legislature's Executive Appropriations
             122      Committee regarding the waiver request; and
             123          (ii) the modification of benefits will:
             124          (A) not increase the state's expenditure for the Access Utah program beyond the
             125      Legislature's appropriation for the program; and
             126          (B) further the state's goal to reduce health care costs, improve access to health care,
             127      and improve health outcomes of Utah citizens.
             128          Section 3. Uncodified Section 42, Laws of Utah 2013, Chapter 341 is amended to
             129      read:
             130          Section 42. Duties -- Interim report.
             131          (1) The task force shall review and make recommendations on the following issues:
             132          (a) the impact of implementation of the federal health reform law and federal
             133      regulations on the state;
             134          (b) options for the state regarding Medicaid expansion and reform including;
             135          (i) the proposals for expansion of coverage for the optional Medicaid population
             136      developed during the 2014 General Session of the Legislature;
             137          (ii) coordination of and evaluation of proposals for providing access to health care for
             138      the optional Medicaid population developed by the task force, the Governor, the Department of
             139      Health, and the Centers for Medicare and Medicaid Services within the United States
             140      Department of Health and Human Services;
             141          (c) health care cost containment strategies;
             142          (d) the role of the state defined contribution arrangement market and online health
             143      insurance market places established under PPACA;
             144          (e) governing structure for the state's defined contribution arrangement market;
             145          (f) Medicaid behavioral health delivery and payment reform models within Medicaid
             146      accountable care organizations and other county provided delivery settings, including:
             147          (i) the development of a system to encourage, track, evaluate, share, and disseminate
             148      results from existing pilot projects; and
             149          (ii) payment reform models that promote performance based reimbursement;


             150          (g) the delivery of charity care in the state, including:
             151          (i) the identification of:
             152          (A) medically underserved and needy populations and geographic areas of the state;
             153          (B) barriers in the current health care delivery and payment models to the promotion of
             154      a comprehensive charity care system; and
             155          (C) current resources available for medical care for medically under-served populations
             156      and medically underserved geographic areas in the state; and
             157          (ii) proposals to establish:
             158          (A) wellness education;
             159          (B) personal responsibility for health care; and
             160          (C) a coordinated, statewide, private sector approach to universal, basic health care for
             161      Utah's medically underserved populations and geographic areas, using private partners to affect
             162      cost savings and market efficiencies; and
             163          (h) the use of self-insured health plans by small employers and the regulation of small
             164      employer stop-loss insurance in the state.
             165          (2) A final report, including any proposed legislation, shall be presented to the
             166      Business and Labor Interim Committee before [November 30, 2013, and before] November 30,
             167      2014.


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