Senator Daniel Hemmert proposes the following substitute bill:


1     
MEDICAID WAIVER AMENDMENTS

2     
2018 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Daniel Hemmert

5     
House Sponsor: Adam Robertson

6     

7     LONG TITLE
8     General Description:
9          This bill authorizes certain changes and waivers for the Medicaid program.
10     Highlighted Provisions:
11          This bill:
12          ▸     requires the Department of Health to implement certain changes to the Medicaid
13     program;
14          ▸     authorizes the Department of Health to apply for waivers or a state plan amendment
15     if necessary to implement the changes in this bill;
16          ▸     creates various reporting requirements; and
17          ▸     creates repeal dates for the reporting requirements in this bill.
18     Money Appropriated in this Bill:
19          None
20     Other Special Clauses:
21          This bill provides a coordination clause.
22     Utah Code Sections Affected:
23     AMENDS:
24          63I-2-226, as last amended by Laws of Utah 2017, Chapters 126, 155, 413, and 419
25     ENACTS:

26          26-18-415, Utah Code Annotated 1953
27          26-18-416, Utah Code Annotated 1953
28     Utah Code Sections Affected by Coordination Clause:
29          26-18-415, Utah Code Annotated 1953
30          26-18-416, Utah Code Annotated 1953
31     

32     Be it enacted by the Legislature of the state of Utah:
33          Section 1. Section 26-18-415 is enacted to read:
34          26-18-415. Medicaid reform waivers -- Reporting requirements.
35          (1) (a) The department shall implement a work and community engagement
36     requirement for certain eligibility groups in the Medicaid program.
37          (b) The work and community engagement requirement described in Subsection (1)(a)
38     does not apply to a person who is:
39          (i) a child;
40          (ii) pregnant;
41          (iii) disabled;
42          (iv) aged;
43          (v) a primary care giver; or
44          (vi) an independent foster care adolescent as defined in Section 26-18-403.
45          (2) The department shall design and implement a pilot program that provides a 12 to 24
46     month medical savings account for certain enrollees in the Medicaid program.
47          (3) Before January 1, 2019, the department shall study and report to the Social Services
48     Appropriations Subcommittee on options for limiting retroactive eligibility for certain
49     eligibility groups.
50          (4) The department:
51          (a) if the waiver described in Section 26-18-416 is not approved, may not implement
52     the components described in Subsections (1) and (2) without federal matching funds at a rate
53     that is greater than or equal to the federal medical assistance percentage, as defined in 42
54     U.S.C. Sec. 1396d(b); and
55          (b) shall design the components described in Subsections (1) through (3) to:
56          (i) reduce the cost of the Medicaid program to the state;

57          (ii) promote enrollee health and self-sufficiency; and
58          (iii) create incentives to utilize health care resources wisely.
59          (5) If necessary to implement the components described in Subsections (1) and (2), the
60     department shall apply for a waiver or a state plan amendment with the Center for Medicare
61     and Medicaid Services within the United States Department of Health and Human Services:
62          (a) before January 1, 2019, to implement the components described in Subsection (1);
63     and
64          (b) before July 1, 2019, to implement the component described in Subsection (2).
65          (6) (a) Before January 1, 2019, the department shall report to the Social Services
66     Appropriations Subcommittee and the Health and Human Services Interim Committee on
67     options for creating a Medicaid waiver request that would authorize the state to limit Medicaid
68     spending growth by limiting the services received by one or more Medicaid eligibility groups.
69          (b) The options developed by the department in Subsection (6)(a) shall:
70          (i) consider the clinical effectiveness and cost of services covered by the Medicaid
71     program;
72          (ii) require a public stakeholder process that includes an opportunity for submission of
73     public comment for review by the department; and
74          (iii) be designed to reduce the costs of the Medicaid program to the state.
75          (7) Before January 1, 2019, the department and the Department of Workforce Services
76     shall report to the Social Services Appropriations Subcommittee and the Health and Human
77     Services Interim Committee on:
78          (a) processes that the Department of Workforce Services uses for determining and
79     verifying eligibility for the Medicaid program; and
80          (b) recommendations to improve the accuracy and reduce the cost of determining and
81     verifying eligibility for the Medicaid program.
82          Section 2. Section 26-18-416 is enacted to read:
83          26-18-416. Medicaid block grant waiver -- Reporting requirement.
84          (1) Before January 1, 2019, the department shall apply for a Medicaid waiver with the
85     Centers for Medicare and Medicaid Services within the United States Department of Health
86     and Human Services to implement the proposal developed under Subsection (2).
87          (2) The department shall develop a proposal for the state to administer the Medicaid

88     program, or a portion of the Medicaid program:
89          (a) with federal funds provided to the state according to a per capita block grant
90     formula by eligibility group developed by the department that:
91          (i) includes an annual inflationary adjustment;
92          (ii) accounts for differences in cost among categories of Medicaid eligibility; and
93          (iii) provides greater flexibility to the state than the current Medicaid payment model;
94     and
95          (b) in a manner that increases the state's control over:
96          (i) the types of services provided;
97          (ii) the manner in which services are delivered and paid for;
98          (iii) eligibility requirements; and
99          (iv) enrollee cost sharing.
100          (3) (a) Before October 1, 2018, and in accordance with the requirements in Subsection
101     26-18-3(3), the department shall report to the Social Services Appropriations Subcommittee
102     and the Health Reform Task Force on the proposal developed under Subsection (2).
103          (b) After submitting the waiver application under Subsection (1), the department shall
104     report any modifications to the waiver application to the Social Services Appropriations
105     Subcommittee and the Health Reform Task Force.
106          Section 3. Section 63I-2-226 is amended to read:
107          63I-2-226. Repeal dates -- Title 26.
108          (1) Section 26-8a-107 is repealed July 1, 2019.
109          (2) Subsections 26-10-12(2) and (4) are repealed July 1, 2017.
110          (3) Subsections 26-18-415(7) and (8) are repealed January 1, 2022.
111          (4) Subsection 26-18-416(3) is repealed January 1, 2025.
112          [(3)] (5) Title 26, Chapter 46, Utah Health Care Workforce Financial Assistance
113     Program, is repealed July 1, 2027.
114          [(4)] (6) Title 26, Chapter 59, Telehealth Pilot Program, is repealed January 1, 2020.
115          Section 4. Coordinating S.B. 172 with H.B. 325 -- Substantive and technical
116     amendments.
117          If this S.B. 172 and H.B. 325, Primary Care Network Amendments, both pass and
118     become law, it is the intent of the Legislature that the Office of Legislative Research and

119     General Counsel shall prepare the Utah Code database for publication by making the following
120     changes:
121          (1) modify Section 26-18-415 in S.B. 172 to read:
122          "26-18-415. Medicaid reform waivers -- Reporting requirements.
123          (1) As used in this section, "decision date" means the day on which the division:
124          (a) receives a notice from the Centers for Medicare and Medicaid Services that the
125     waiver submitted under Section 26-18-415, Primary Care Network enhancement waiver
126     program, will not be approved; or
127          (b) withdraws the waiver submitted under Section 26-18-415, Primary Care Network
128     enhancement waiver program.
129          (2) (a) The department shall implement a work and community engagement
130     requirement for certain eligibility groups in the Medicaid program.
131          (b) The work and community engagement requirement described in Subsection (2)(a)
132     does not apply to a person who is:
133          (i) a child;
134          (ii) pregnant;
135          (iii) disabled;
136          (iv) aged;
137          (v) a primary care giver; or
138          (vi) an independent foster care adolescent as defined in Section 26-18-403.
139          (3) The department shall design and implement a pilot program that provides a 12 to 24
140     month medical savings account for certain enrollees in the Medicaid program.
141          (4) Before January 1, 2019, the department shall study and report to the Social Services
142     Appropriations Subcommittee on options for limiting retroactive eligibility for certain
143     eligibility groups.
144          (5) The department:
145          (a) if the waiver described in Section 26-18-416 is not approved, may not implement
146     the components described in Subsections (2) and (3) without federal matching funds at a rate
147     that is greater than or equal to the federal medical assistance percentage, as defined in 42
148     U.S.C. Sec. 1396d(b); and
149          (b) shall design the components described in Subsections (2) through (4) to:

150          (i) reduce the cost of the Medicaid program to the state;
151          (ii) promote enrollee health and self-sufficiency; and
152          (iii) create incentives to utilize health care resources wisely.
153          (6) If necessary to implement the components described in Subsections (2) and (3), the
154     department shall apply for a waiver or a state plan amendment with the Center for Medicare
155     and Medicaid Services within the United States Department of Health and Human Services:
156          (a) within eight months after the decision date, to implement the components described
157     in Subsection (2); and
158          (b) within 12 months after the decision date, to implement the component described in
159     Subsection (3).
160          (7) (a) Before January 1, 2019, the department shall report to the Social Services
161     Appropriations Subcommittee and the Health and Human Services Interim Committee on
162     options for creating a Medicaid waiver request that would authorize the state to limit Medicaid
163     spending growth by limiting the services received by one or more Medicaid eligibility groups.
164          (b) The options developed by the department in Subsection (7)(a) shall:
165          (i) consider the clinical effectiveness and cost of services covered by the Medicaid
166     program;
167          (ii) require a public stakeholder process that includes an opportunity for submission of
168     public comment for review by the department; and
169          (iii) be designed to reduce the costs of the Medicaid program to the state.
170          (8) Before January 1, 2019, the department and the Department of Workforce Services
171     shall report to the Social Services Appropriations Subcommittee and the Health and Human
172     Services Interim Committee on:
173          (a) processes that the Department of Workforce Services uses for determining and
174     verifying eligibility for the Medicaid program; and
175          (b) recommendations to improve the accuracy and reduce the cost of determining and
176     verifying eligibility for the Medicaid program."; and
177          (2) modify Section 26-18-416 to read:
178          "26-18-416. Medicaid block grant waiver -- Reporting requirement.
179          (1) As used in this section, "decision date" means the day on which the division:
180          (a) receives a notice from the Centers for Medicare and Medicaid Services that the

181     waiver submitted under Section 26-18-415, Primary Care Network enhancement waiver
182     program, will not be approved; or
183          (b) withdraws the waiver submitted under Section 26-18-415, Primary Care Network
184     enhancement waiver program.
185          (2) Within eight months after the decision date, the department shall apply for a
186     Medicaid waiver with the Centers for Medicare and Medicaid Services within the United States
187     Department of Health and Human Services to implement the proposal developed under
188     Subsection (3).
189          (3) The department shall develop a proposal for the state to administer the Medicaid
190     program, or a portion of the Medicaid program:
191          (a) with federal funds provided to the state according to a per capita block grant
192     formula by eligibility group developed by the department that:
193          (i) includes an annual inflationary adjustment;
194          (ii) accounts for differences in cost among categories of Medicaid eligibility; and
195          (iii) provides greater flexibility to the state than the current Medicaid payment model;
196     and
197          (b) in a manner that increases the state's control over:
198          (i) the types of services provided;
199          (ii) the manner in which services are delivered and paid for;
200          (iii) eligibility requirements; and
201          (iv) enrollee cost sharing.
202          (4) (a) Within six months after the decision date, and in accordance with the
203     requirements in Subsection 26-18-3(3), the department shall report to the Social Services
204     Appropriations Subcommittee and the Health Reform Task Force on the proposal developed
205     under Subsection (3).
206          (b) After submitting the waiver application under Subsection (2), the department shall
207     report any modifications to the waiver application to the Social Services Appropriations
208     Subcommittee and the Health Reform Task Force."