S.B. 272

             1     

EXPANSION OF MEDICAID PROGRAM

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Gene Davis

             5     
House Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends the Utah Health Code related to the state Medicaid program.
             10      Highlighted Provisions:
             11          This bill:
             12          .    requires the Department of Health to amend the state Medicaid plan to expand
             13      Medicaid eligibility to the optional populations under the Patient Protection and
             14      Affordable Care Act;
             15          .    requires the Department of Health and the Department of Workforce Services to
             16      apply for an enhanced federal match rate and other funding to pay for administrative
             17      and developmental costs for the eligibility and enrollment system;
             18          .    requires the General Fund savings associated with Medicaid expansion to be
             19      deposited into the Medicaid Growth Reduction and Budget Stabilization Account to
             20      be used to fund the future costs of Medicaid expansion;
             21          .    repeals a provision requiring the governor to comply with certain requirements
             22      before expanding Medicaid; and
             23          .    provides that Medicaid expansion is repealed if federal funding decreases from the
             24      Patient Protection and Affordable Care Act funding rates.
             25      Money Appropriated in this Bill:
             26          None
             27      Other Special Clauses:


             28          None
             29      Utah Code Sections Affected:
             30      AMENDS:
             31           63J-1-315 , as enacted by Laws of Utah 2011, Chapter 211
             32      ENACTS:
             33           26-18-20 , Utah Code Annotated 1953
             34      REPEALS:
             35           26-18-18 , as enacted by Laws of Utah 2013, Chapter 477
             36     
             37      Be it enacted by the Legislature of the state of Utah:
             38          Section 1. Section 26-18-20 is enacted to read:
             39          26-18-20. Medicaid eligibility expansion.
             40          (1) For purposes of this section, "PPACA" is as defined in Section 31A-1-301 .
             41          (2) The state shall, in accordance with this section and PPACA, amend its state
             42      Medicaid plan to expand Medicaid eligibility to the optional Medicaid expansion population
             43      under PPACA.
             44          (3) The department and the Department of Workforce Services:
             45          (a) shall apply for enhanced federal match rates to cover the eligibility and enrollment
             46      system costs associated with increasing Medicaid eligibility under Subsection (2); and
             47          (b) may apply for grants and other assistance to cover the costs to the state for
             48      developing and administering the expanded Medicaid eligibility system.
             49          (4) (a) The department shall assist the Department of Finance with identifying savings
             50      to the state General Fund associated with the expansion of Medicaid eligibility under this
             51      section.
             52          (b) The Department of Finance shall deposit the savings identified under Subsection
             53      (4)(a) into the Medicaid Growth Reduction and Budget Stabilization Account in accordance
             54      with Section 63J-1-315 .
             55          (5) The Medicaid expansion under this section is repealed on the date of a certification
             56      by the executive director that:
             57          (a) Congress has taken an action that will reduce the federal financial participation for
             58      the expansion population; and


             59          (b) the reduction in federal financial participation exceeds the reductions described in
             60      PPACA, Subsection 2001(a)(3).
             61          Section 2. Section 63J-1-315 is amended to read:
             62           63J-1-315. Medicaid Growth Reduction and Budget Stabilization Account
             63      --Transfers of Medicaid growth savings -- Base budget adjustments.
             64          (1) As used in this section:
             65          (a) "Department" means the Department of Health created in Section 26-1-4 .
             66          (b) "Division" means the Division of Health Care Financing created within the
             67      department under Section 26-18-2.1 .
             68          (c) "General Fund revenue surplus" means a situation where actual General Fund
             69      revenues collected in a completed fiscal year exceed the estimated revenues for the General
             70      Fund for that fiscal year that were adopted by the Executive Appropriations Committee of the
             71      Legislature.
             72          (d) "Medicaid growth savings" means the Medicaid growth target minus Medicaid
             73      program expenditures, if Medicaid program expenditures are less than the Medicaid growth
             74      target.
             75          (e) "Medicaid growth target" means Medicaid program expenditures for the previous
             76      year multiplied by 1.08.
             77          (f) "Medicaid program" is as defined in Section 26-18-2 .
             78          (g) "Medicaid program expenditures" means total state revenue expended for the
             79      Medicaid program from the General Fund, including restricted accounts within the General
             80      Fund, during a fiscal year.
             81          (h) "Medicaid program expenditures for the previous year" means total state revenue
             82      expended for the Medicaid program from the General Fund, including restricted accounts
             83      within the General Fund, during the fiscal year immediately preceding a fiscal year for which
             84      Medicaid program expenditures are calculated.
             85          (i) "Operating deficit" means that, at the end of the fiscal year, the unassigned fund
             86      balance in the General Fund is less than zero.
             87          (j) "State revenue" means revenue other than federal revenue.
             88          (k) "State revenue expended for the Medicaid program" includes money transferred or
             89      appropriated to the Medicaid Growth Reduction and Budget Stabilization Account only to the


             90      extent the money is appropriated for the Medicaid program by the Legislature.
             91          (2) There is created within the General Fund a restricted account to be known as the
             92      Medicaid Growth Reduction and Budget Stabilization Account.
             93          (3) (a) (i) Except as provided in Subsection (6), if, at the end of a fiscal year, there is a
             94      General Fund revenue surplus, the Division of Finance shall transfer an amount equal to
             95      Medicaid growth savings from the General Fund to the Medicaid Growth Reduction and
             96      Budget Stabilization Account.
             97          (ii) If the amount transferred is reduced to prevent an operating deficit, as provided in
             98      Subsection (6), the Legislature shall include, to the extent revenue is available, an amount
             99      equal to the reduction as an appropriation from the General Fund to the account in the base
             100      budget for the second fiscal year following the fiscal year for which the reduction was made.
             101          (b) If, at the end of a fiscal year, there is not a General Fund revenue surplus, the
             102      Legislature shall include, to the extent revenue is available, an amount equal to Medicaid
             103      growth savings as an appropriation from the General Fund to the account in the base budget for
             104      the second fiscal year following the fiscal year for which the reduction was made.
             105          (c) Subsections (3)(a) and (3)(b) apply only to the fiscal year in which the department
             106      implements:
             107          (i) the proposal developed under Section 26-18-405 to reduce the long-term growth in
             108      state expenditures for the Medicaid program, and to each fiscal year after that year[.]; or
             109          (ii) expansion of Medicaid eligibility under Section 26-18-20 .
             110          (4) The Division of Finance shall calculate the amount to be transferred under
             111      Subsection (3):
             112          (a) before transferring revenue from the General Fund revenue surplus to:
             113          (i) the General Fund Budget Reserve Account under Section 63J-1-312 and;
             114          (ii) the State Disaster Recovery Restricted Account under Section 63J-1-314 ;
             115          (b) before earmarking revenue from the General Fund revenue surplus to the Industrial
             116      Assistance Account under Section 63M-1-905 ; and
             117          (c) before making any other year-end contingency appropriations, year-end set-asides,
             118      or other year-end transfers required by law.
             119          (5) (a) If, at the close of any fiscal year, there appears to be insufficient money to pay
             120      additional debt service for any bonded debt authorized by the Legislature, the Division of


             121      Finance may hold back from any General Fund revenue surplus money sufficient to pay the
             122      additional debt service requirements resulting from issuance of bonded debt that was
             123      authorized by the Legislature.
             124          (b) The Division of Finance may not spend the hold back amount for debt service
             125      under Subsection (5)(a) unless and until it is appropriated by the Legislature.
             126          (c) If, after calculating the amount for transfer under Subsection (3), the remaining
             127      General Fund revenue surplus is insufficient to cover the hold back for debt service required by
             128      Subsection (5)(a), the Division of Finance shall reduce the transfer to the Medicaid Growth
             129      Reduction and Budget Stabilization Account by the amount necessary to cover the debt service
             130      hold back.
             131          (d) Notwithstanding Subsections (3) and (4), the Division of Finance shall hold back
             132      the General Fund balance for debt service authorized by this Subsection (5) before making any
             133      transfers to the Medicaid Growth Reduction and Budget Stabilization Account or any other
             134      designation or allocation of General Fund revenue surplus.
             135          (6) Notwithstanding Subsections (3) and (4), if, at the end of a fiscal year, the Division
             136      of Finance determines that an operating deficit exists and that holding back earmarks to the
             137      Industrial Assistance Account under Section 63M-1-905 , transfers to the State Disaster
             138      Recovery Restricted Account under Section 63J-1-314 , transfers to the General Fund Budget
             139      Reserve Account under Section 63J-1-312 , or earmarks and transfers to more than one of those
             140      accounts, in that order, does not eliminate the operating deficit, the Division of Finance may
             141      reduce the transfer to the Medicaid Growth Reduction and Budget Stabilization Account by the
             142      amount necessary to eliminate the operating deficit.
             143          (7) The Legislature may appropriate money from the Medicaid Growth Reduction and
             144      Budget Stabilization Account only:
             145          (a) (i) if Medicaid program expenditures for the fiscal year for which the appropriation
             146      is made are estimated to be 108% or more of Medicaid program expenditures for the previous
             147      year; and
             148          [(b)] (ii) for the Medicaid program[.]; or
             149          (b) to fund Medicaid expansion under Section 26-18-20 .
             150          (8) The Division of Finance shall deposit interest or other earnings derived from
             151      investment of Medicaid Growth Reduction and Budget Stabilization Account money into the


             152      General Fund.
             153          Section 3. Repealer.
             154          This bill repeals:
             155          Section 26-18-18 , Optional Medicaid expansion.




Legislative Review Note
    as of 3-5-14 4:43 PM


Office of Legislative Research and General Counsel


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