Representative James A. Dunnigan proposes the following substitute bill:


1     
MEDICAID AMENDMENTS

2     
2022 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: James A. Dunnigan

5     
Senate Sponsor: Michael S. Kennedy

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions related to the Medicaid program.
10     Highlighted Provisions:
11          This bill:
12          ▸     amends provisions relating to the targeted adult Medicaid program;
13          ▸     requires the department to convene a working group to discuss the delivery of
14     behavioral health services in the Medicaid program; and
15          ▸     authorizes certain adjustments in the delivery of behavioral health services for
16     individuals who are in the targeted adult Medicaid program if the department
17     determines that certain requirements are met.
18     Money Appropriated in this Bill:
19          This bill appropriates in fiscal year 2023:
20          ▸     to Department of Health and Human Services -- Integrated Health Care Services --
21     Medicaid Behavioral Health Services, as an ongoing appropriation:
22               •     from the General Fund, $436,000.
23     Other Special Clauses:
24          None
25     Utah Code Sections Affected:

26     AMENDS:
27          26-18-411, as last amended by Laws of Utah 2020, Chapter 225
28          26-18-415, as last amended by Laws of Utah 2019, Chapters 1 and 393
29     ENACTS:
30          26-18-427, Utah Code Annotated 1953
31          26-18-428, Utah Code Annotated 1953
32     

33     Be it enacted by the Legislature of the state of Utah:
34          Section 1. Section 26-18-411 is amended to read:
35          26-18-411. Health coverage improvement program -- Eligibility -- Annual report
36     -- Expansion of eligibility for adults with dependent children.
37          (1) [For purposes of] As used in this section:
38          (a) "Adult in the expansion population" means an individual who:
39          (i) is described in 42 U.S.C. Sec. 1396a(a)(10)(A)(i)(VIII); and
40          (ii) is not otherwise eligible for Medicaid as a mandatory categorically needy
41     individual.
42          (b) "Enhancement waiver program" means the Primary Care Network enhancement
43     waiver program described in Section 26-18-416.
44          (c) "Federal poverty level" means the poverty guidelines established by the Secretary of
45     the United States Department of Health and Human Services under 42 U.S.C. Sec. 9909(2).
46          (d) "Health coverage improvement program" means the health coverage improvement
47     program described in Subsections (3) through (10).
48          (e) "Homeless":
49          (i) means an individual who is chronically homeless, as determined by the department;
50     and
51          (ii) includes someone who was chronically homeless and is currently living in
52     supported housing for the chronically homeless.
53          (f) "Income eligibility ceiling" means the percent of federal poverty level:
54          (i) established by the state in an appropriations act adopted pursuant to Title 63J,
55     Chapter 1, Budgetary Procedures Act; and
56          (ii) under which an individual may qualify for Medicaid coverage in accordance with

57     this section.
58          (g) "Targeted adult Medicaid program" means the program implemented by the
59     department under Subsections (5) through (7).
60          (2) Beginning July 1, 2016, the department shall amend the state Medicaid plan to
61     allow temporary residential treatment for substance abuse, for the traditional Medicaid
62     population, in a short term, non-institutional, 24-hour facility, without a bed capacity limit that
63     provides rehabilitation services that are medically necessary and in accordance with an
64     individualized treatment plan, as approved by CMS and as long as the county makes the
65     required match under Section 17-43-201.
66          (3) Beginning July 1, 2016, the department shall amend the state Medicaid plan to
67     increase the income eligibility ceiling to a percentage of the federal poverty level designated by
68     the department, based on appropriations for the program, for an individual with a dependent
69     child.
70          (4) Before July 1, 2016, the division shall submit to CMS a request for waivers, or an
71     amendment of existing waivers, from federal statutory and regulatory law necessary for the
72     state to implement the health coverage improvement program in the Medicaid program in
73     accordance with this section.
74          (5) (a) An adult in the expansion population is eligible for Medicaid if the adult meets
75     the income eligibility and other criteria established under Subsection (6).
76          (b) An adult who qualifies under Subsection (6) shall receive Medicaid coverage:
77          (i) through the traditional fee for service Medicaid model in counties without Medicaid
78     accountable care organizations or the state's Medicaid accountable care organization delivery
79     system, where implemented and at the department's discretion;
80          (ii) except as provided in Subsection (5)(b)(iii) and at the department's discretion, for
81     behavioral health, through the counties in accordance with Sections 17-43-201 and 17-43-301;
82          (iii) that integrates behavioral health services and physical health services with
83     Medicaid accountable care organizations in select geographic areas of the state that choose an
84     integrated model; and
85          (iv) that permits temporary residential treatment for substance abuse in a short term,
86     non-institutional, 24-hour facility, without a bed capacity limit, as approved by CMS, that
87     provides rehabilitation services that are medically necessary and in accordance with an

88     individualized treatment plan.
89          [(c) Medicaid accountable care organizations and counties that elect to integrate care
90     under Subsection (5)(b)(iii) shall collaborate on enrollment, engagement of patients, and
91     coordination of services.]
92          (6) (a) An individual is eligible for the health coverage improvement program under
93     Subsection (5) if:
94          (i) at the time of enrollment, the individual's annual income is below the income
95     eligibility ceiling established by the state under Subsection (1)(f); and
96          (ii) the individual meets the eligibility criteria established by the department under
97     Subsection (6)(b).
98          (b) Based on available funding and approval from CMS, the department shall select the
99     criteria for an individual to qualify for the Medicaid program under Subsection (6)(a)(ii), based
100     on the following priority:
101          (i) a chronically homeless individual;
102          (ii) if funding is available, an individual:
103          (A) involved in the justice system through probation, parole, or court ordered
104     treatment; and
105          (B) in need of substance abuse treatment or mental health treatment, as determined by
106     the department; or
107          (iii) if funding is available, an individual in need of substance abuse treatment or
108     mental health treatment, as determined by the department.
109          (c) An individual who qualifies for Medicaid coverage under Subsections (6)(a) and (b)
110     may remain on the Medicaid program for a 12-month certification period as defined by the
111     department. Eligibility changes made by the department under Subsection (1)(f) or (6)(b) shall
112     not apply to an individual during the 12-month certification period.
113          (7) The state may request a modification of the income eligibility ceiling and other
114     eligibility criteria under Subsection (6) each fiscal year based on projected enrollment, costs to
115     the state, and the state budget.
116          (8) Before September 30 of each year, the department shall report to the Health and
117     Human Services Interim Committee and to the Executive Appropriations Committee:
118          (a) the number of individuals who enrolled in Medicaid under Subsection (6);

119          (b) the state cost of providing Medicaid to individuals enrolled under Subsection (6);
120     and
121          (c) recommendations for adjusting the income eligibility ceiling under Subsection (7),
122     and other eligibility criteria under Subsection (6), for the upcoming fiscal year.
123          (9) The current Medicaid program and the health coverage improvement program,
124     when implemented, shall coordinate with a state prison or county jail to expedite Medicaid
125     enrollment for an individual who is released from custody and was eligible for or enrolled in
126     Medicaid before incarceration.
127          (10) Notwithstanding Sections 17-43-201 and 17-43-301, a county does not have to
128     provide matching funds to the state for the cost of providing Medicaid services to newly
129     enrolled individuals who qualify for Medicaid coverage under the health coverage
130     improvement program under Subsection (6).
131          (11) If the enhancement waiver program is implemented, the department:
132          (a) may not accept any new enrollees into the health coverage improvement program
133     after the day on which the enhancement waiver program is implemented;
134          (b) shall transition all individuals who are enrolled in the health coverage improvement
135     program into the enhancement waiver program;
136          (c) shall suspend the health coverage improvement program within one year after the
137     day on which the enhancement waiver program is implemented;
138          (d) shall, within one year after the day on which the enhancement waiver program is
139     implemented, use all appropriations for the health coverage improvement program to
140     implement the enhancement waiver program; and
141          (e) shall work with CMS to maintain any waiver for the health coverage improvement
142     program while the health coverage improvement program is suspended under Subsection
143     (11)(c).
144          (12) If, after the enhancement waiver program takes effect, the enhancement waiver
145     program is repealed or suspended by either the state or federal government, the department
146     shall reinstate the health coverage improvement program and continue to accept new enrollees
147     into the health coverage improvement program in accordance with the provisions of this
148     section.
149          Section 2. Section 26-18-415 is amended to read:

150          26-18-415. Medicaid waiver expansion.
151          (1) As used in this section:
152          (a) "Federal poverty level" means the same as that term is defined in Section
153     26-18-411.
154          (b) "Medicaid waiver expansion" means an expansion of the Medicaid program in
155     accordance with this section.
156          (2) (a) Before January 1, 2019, the department shall apply to CMS for approval of a
157     waiver or state plan amendment to implement the Medicaid waiver expansion.
158          (b) The Medicaid waiver expansion shall:
159          (i) expand Medicaid coverage to eligible individuals whose income is below 95% of
160     the federal poverty level;
161          (ii) obtain maximum federal financial participation under 42 U.S.C. Sec. 1396d(y) for
162     enrolling an individual in the Medicaid program;
163          (iii) provide Medicaid benefits through the state's Medicaid accountable care
164     organizations in areas where a Medicaid accountable care organization is implemented;
165          (iv) integrate the delivery of behavioral health services and physical health services
166     with Medicaid accountable care organizations in select geographic areas of the state that
167     choose an integrated model;
168          (v) include a path to self-sufficiency, including work activities as defined in 42 U.S.C.
169     Sec. 607(d), for qualified adults;
170          (vi) require an individual who is offered a private health benefit plan by an employer to
171     enroll in the employer's health plan;
172          (vii) sunset in accordance with Subsection (5)(a); and
173          (viii) permit the state to close enrollment in the Medicaid waiver expansion if the
174     department has insufficient funding to provide services to additional eligible individuals.
175          (3) If the Medicaid waiver described in Subsection (2)(a) is approved, the department
176     may only pay the state portion of costs for the Medicaid waiver expansion with appropriations
177     from:
178          (a) the Medicaid Expansion Fund, created in Section 26-36b-208;
179          (b) county contributions to the non-federal share of Medicaid expenditures; and
180          (c) any other contributions, funds, or transfers from a non-state agency for Medicaid

181     expenditures.
182          [(4) (a) In consultation with the department, Medicaid accountable care organizations
183     and counties that elect to integrate care under Subsection (2)(b)(iv) shall collaborate on
184     enrollment, engagement of patients, and coordination of services.]
185          [(b)] (4) As part of the provision described in Subsection (2)(b)(iv), the department
186     shall apply for a waiver to permit the creation of an integrated delivery system:
187          [(i) for any geographic area that expresses interest in integrating the delivery of
188     services under Subsection (2)(b)(iv); and]
189          (a) only if the requirements established in Section 26-18-428 are satisfied; and
190          [(ii)] (b) in which the department:
191          [(A)] (i) may permit a local mental health authority to integrate the delivery of
192     behavioral health services and physical health services;
193          [(B)] (ii) may permit a county, local mental health authority, or Medicaid accountable
194     care organization to integrate the delivery of behavioral health services and physical health
195     services to select groups within the population that are newly eligible under the Medicaid
196     waiver expansion; and
197          [(C)] (iii) may make rules in accordance with Title 63G, Chapter 3, Utah
198     Administrative Rulemaking Act, to integrate payments for behavioral health services and
199     physical health services to plans or providers.
200          (5) (a) If federal financial participation for the Medicaid waiver expansion is reduced
201     below 90%, the authority of the department to implement the Medicaid waiver expansion shall
202     sunset no later than the next July 1 after the date on which the federal financial participation is
203     reduced.
204          (b) The department shall close the program to new enrollment if the cost of the
205     Medicaid waiver expansion is projected to exceed the appropriations for the fiscal year that are
206     authorized by the Legislature through an appropriations act adopted in accordance with Title
207     63J, Chapter 1, Budgetary Procedures Act.
208          (6) If the Medicaid waiver expansion is approved by CMS, the department shall report
209     to the Social Services Appropriations Subcommittee on or before November 1 of each year that
210     the Medicaid waiver expansion is operational:
211          (a) the number of individuals who enrolled in the Medicaid waiver program;

212          (b) costs to the state for the Medicaid waiver program;
213          (c) estimated costs for the current and following state fiscal year; and
214          (d) recommendations to control costs of the Medicaid waiver expansion.
215          Section 3. Section 26-18-427 is enacted to read:
216          26-18-427. Behavioral health delivery working group.
217          (1) On or before May 31, 2022, the department shall convene a working group to
218     advise the department on:
219          (a) establishing specific and measurable metrics based on the outcomes described in
220     Subsections 26-18-428(5)(a) through (e) that must be met before the department may
221     implement the delivery system adjustments under Section 26-18-426;
222          (b) improving the delivery of behavioral health services in the Medicaid program;
223          (c) proposals to implement the delivery of services under Section 26-18-428; and
224          (d) issues that are identified by accountable care organizations and behavioral health
225     service providers.
226          (2) The working group convened under Subsection (1) shall:
227          (a) meet quarterly; and
228          (b) consist of at least the following individuals:
229          (i) the executive director or the executive director's designee;
230          (ii) for each Medicaid accountable care organization, an individual selected by the
231     accountable care organization;
232          (iii) five individuals selected by the department to represent various types of behavioral
233     health services providers, including, at a minimum, individuals who represent providers who
234     provide the following types of services:
235          (A) acute inpatient behavioral health treatment;
236          (B) residential treatment;
237          (C) intensive outpatient or partial hospitalization treatment; and
238          (D) general outpatient treatment;
239          (iv) a representative of an association that represents behavioral health treatment
240     providers in the state, designated by the Utah Behavioral Healthcare Council convened by the
241     Utah Association of Counties;
242          (v) a representative of an organization representing behavioral health organizations;

243          (vi) the chair of the Utah Substance Use and Mental Health Advisory Council created
244     in Section 63M-7-301;
245          (vii) a representative of an association that represents local authorities who provide
246     public behavioral health care, designated by the department;
247          (viii) one member of the Senate, appointed by the president of the Senate; and
248          (ix) one member of the House of Representatives, appointed by the speaker of the
249     House of Representatives.
250          (3) The working group convened under this section shall:
251          (a) establish specific and measurable metrics based on the outcomes described in
252     Subsections 26-18-428(5)(a) through (e) that must be met before the department may
253     implement the delivery system adjustments under Section 26-18-426;
254          (b) coordinate the system of care for the targeted adult Medicaid program under
255     Section 26-18-411;
256          (c) address filing, authorization and reauthorization for treatment services,
257     reimbursement, and claims issues between providers, accountable care organizations, and the
258     department;
259          (d) advise the department on ways to improve delivery of behavioral health services to
260     enrollees in the Medicaid program;
261          (e) discuss wraparound service coverage for individuals in the Medicaid program who
262     need specific, nonclinical services to ensure a path to success; and
263          (f) develop recommendations for changes to statute or administrative rule that would
264     facilitate improved delivery of behavioral health services in the Medicaid program.
265          Section 4. Section 26-18-428 is enacted to read:
266          26-18-428. Delivery system adjustments for the targeted adult Medicaid program.
267          (1) As used in this section, "targeted adult Medicaid program" means the same as that
268     term is defined in Section 26-18-411.
269          (2) The department may implement the adjustments authorized in this section after:
270          (a) July 1, 2023; and
271          (b) the department determines that the metrics established by the behavioral health
272     delivery working group convened under Section 26-18-427 are met.
273          (3) The department may, for individuals who are enrolled in the targeted adult

274     Medicaid program:
275          (a) integrate the delivery of behavioral and physical health in certain counties; and
276          (b) deliver behavioral health services through an accountable care organization where
277     implemented.
278          (4) Before implementing the adjustments described in Subsection (3) in any county for
279     adults who qualify for the targeted adult Medicaid program, the department shall, at a
280     minimum, seek the input from:
281          (a) individuals who qualify for the targeted adult Medicaid program who reside in the
282     county;
283          (b) the county executive officer, members of the legislative body, and other county
284     officials;
285          (c) the local mental health authority and substance use authority;
286          (d) Medicaid accountable care organizations;
287          (e) providers of physical or behavioral health in the county who provide services to
288     enrollees in the targeted adult Medicaid program in the county; and
289          (f) other individuals that the department deems necessary.
290          (5) If the department provides Medicaid coverage through a managed care delivery
291     system, the department shall include language in the department's managed care contracts that
292     require the managed care plan to:
293          (a) be in compliance with federal Medicaid managed care requirements;
294          (b) timely and accurately process authorizations and claims in accordance with
295     Medicaid policy and contract requirements;
296          (c) adequately reimburse providers to maintain adequacy of access to care;
297          (d) provide care management services sufficient to meet the needs of Medicaid eligible
298     individuals enrolled in the managed care plan's plan; and
299          (e) timely resolve any disputes between a provider or enrollee with the managed care
300     organization's plan.
301          (6) The department may take corrective action if the accountable care organization fails
302     to comply with the terms of the accountable care organization's contract.
303          Section 5. Appropriation.
304          The following sums of money are appropriated for the fiscal year beginning July 1,

305     2022, and ending June 30, 2023. These are additions to amounts previously appropriated for
306     fiscal year 2023. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
307     Act, the Legislature appropriates the following sums of money from the funds or accounts
308     indicated for the use and support of the government of the state of Utah.
309     ITEM 1
310          To the Department of Health and Human Services - Integrated Health Care Services
311               From General Fund
$436,000

312               Schedule of Programs:
313                    Medicaid Behavioral Health Services     $436,000
314          The Legislature intends that appropriations provided under this section be used by the
315     Division of Integrated Healthcare within the Department of Health and Human Services to pass
316     through to local substance abuse and mental health authorities for any match requirement
317     associated with H.B. 413, Medicaid Amendments.