1     
MEDICAID MODIFICATIONS

2     
2024 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 updates Medicaid provisions.
10     Highlighted Provisions:
11          This bill:
12          ▸     amends or repeals obsolete Medicaid provisions and makes conforming changes;
13          ▸     requires the department to apply for a Medicaid waiver or amend an existing waiver
14     application related to qualified inmates in prison or jail; and
15          ▸     modifies provisions related to how a health insurance entity interacts with the
16     Medicaid program.
17     Money Appropriated in this Bill:
18          None
19     Other Special Clauses:
20          None
21     Utah Code Sections Affected:
22     AMENDS:
23          26B-1-316, as last amended by Laws of Utah 2023, Chapter 495 and renumbered and
24     amended by Laws of Utah 2023, Chapter 305
25          26B-1-332, as renumbered and amended by Laws of Utah 2023, Chapter 305
26          26B-3-108, as last amended by Laws of Utah 2023, Chapter 466 and renumbered and
27     amended by Laws of Utah 2023, Chapter 306

28          26B-3-110, as renumbered and amended by Laws of Utah 2023, Chapter 306
29          26B-3-111, as renumbered and amended by Laws of Utah 2023, Chapter 306
30          26B-3-112, as renumbered and amended by Laws of Utah 2023, Chapter 306
31          26B-3-126, as renumbered and amended by Laws of Utah 2023, Chapter 306
32          26B-3-136, as renumbered and amended by Laws of Utah 2023, Chapter 306
33          26B-3-201, as renumbered and amended by Laws of Utah 2023, Chapter 306
34          26B-3-203, as renumbered and amended by Laws of Utah 2023, Chapter 306
35          26B-3-205, as renumbered and amended by Laws of Utah 2023, Chapter 306
36          26B-3-217, as renumbered and amended by Laws of Utah 2023, Chapter 306
37          26B-3-224, as renumbered and amended by Laws of Utah 2023, Chapter 306
38          26B-3-226, as enacted by Laws of Utah 2023, Chapter 336
39          26B-3-401, as renumbered and amended by Laws of Utah 2023, Chapter 306
40          26B-3-403, as renumbered and amended by Laws of Utah 2023, Chapter 306
41          26B-3-503, as renumbered and amended by Laws of Utah 2023, Chapter 306
42          26B-3-504, as renumbered and amended by Laws of Utah 2023, Chapter 306
43          26B-3-511, as renumbered and amended by Laws of Utah 2023, Chapter 306
44          26B-3-512, as renumbered and amended by Laws of Utah 2023, Chapter 306
45          26B-3-605, as renumbered and amended by Laws of Utah 2023, Chapter 306
46          26B-3-607, as renumbered and amended by Laws of Utah 2023, Chapter 306
47          26B-3-610, as renumbered and amended by Laws of Utah 2023, Chapter 306
48          26B-3-705, as renumbered and amended by Laws of Utah 2023, Chapter 306
49          26B-3-707, as last amended by Laws of Utah 2023, Chapter 495 and renumbered and
50     amended by Laws of Utah 2023, Chapter 306
51          26B-3-803, as renumbered and amended by Laws of Utah 2023, Chapter 306
52          26B-3-1004, as renumbered and amended by Laws of Utah 2023, Chapter 306
53          63C-18-202, as last amended by Laws of Utah 2023, Chapters 270, 329
54     REPEALS:
55          26B-3-138, as renumbered and amended by Laws of Utah 2023, Chapter 306
56     

57     Be it enacted by the Legislature of the state of Utah:
58          Section 1. Section 26B-1-316 is amended to read:

59          26B-1-316. Hospital Provider Assessment Expendable Revenue Fund.
60          (1) There is created an expendable special revenue fund known as the "Hospital
61     Provider Assessment Expendable Revenue Fund."
62          (2) The fund shall consist of:
63          (a) the assessments collected by the department under Chapter 3, Part 7, Hospital
64     Provider Assessment;
65          (b) any interest and penalties levied with the administration of Chapter 3, Part 7,
66     Hospital Provider Assessment; and
67          (c) any other funds received as donations for the fund and appropriations from other
68     sources.
69          (3) Money in the fund shall be used:
70          (a) to support capitated rates consistent with Subsection 26B-3-705(1)(d) for
71     accountable care organizations as defined in Section 26B-3-701;
72          (b) to implement the quality strategies described in Subsection 26B-3-707(2), except
73     that the amount under this Subsection (3)(b) may not exceed $211,300 in each fiscal year; and
74          (c) to reimburse money collected by the division from a hospital, as defined in Section
75     26B-3-701, through a mistake made under Chapter 3, Part 7, Hospital Provider Assessment.
76          [(4) (a) Subject to Subsection (4)(b), for the fiscal year beginning July 1, 2019, and
77     ending July 1, 2020, any fund balance in excess of the amount necessary to pay for the costs
78     described in Subsection (3) shall be deposited into the General Fund.]
79          [(b) Subsection (4)(a) applies only to funds that were appropriated by the Legislature
80     from the General Fund to the fund and the interest and penalties deposited into the fund under
81     Subsection (2)(b).]
82          Section 2. Section 26B-1-332 is amended to read:
83          26B-1-332. Nursing Care Facilities Provider Assessment Fund -- Creation --
84     Administration -- Uses.
85          (1) There is created an expendable special revenue fund known as the "Nursing Care
86     Facilities Provider Assessment Fund" consisting of:
87          (a) [the] assessments collected by the department under Chapter 3, Part 4, Nursing
88     Care Facility Assessment;
89          (b) fines paid by nursing care facilities for excessive Medicare inpatient revenue under

90     Section 26B-2-222;
91          (c) money appropriated or otherwise made available by the Legislature;
92          (d) any interest earned on the fund; and
93          (e) penalties levied with the administration of Chapter 3, Part 4, Nursing Care Facility
94     Assessment.
95          (2) Money in the fund shall only be used by the Medicaid program:
96          (a) to the extent authorized by federal law, to obtain federal financial participation in
97     the Medicaid program;
98          (b) to provide the increased level of hospice reimbursement resulting from the nursing
99     care facilities assessment imposed under Section 26B-3-403;
100          (c) for the Medicaid program to make quality incentive payments to nursing care
101     facilities, subject to CMS approval of a Medicaid state plan amendment [to do so by the
102     Centers for Medicare and Medicaid Services within the United States Department of Health
103     and Human Services];
104          (d) to increase the rates paid before July 1, 2004, to nursing care facilities for providing
105     services pursuant to the Medicaid program; and
106          (e) for administrative expenses, if the administrative expenses for the fiscal year do not
107     exceed 3% of the money deposited into the fund during the fiscal year.
108          (3) The department may not spend the money in the fund to replace existing state
109     expenditures paid to nursing care facilities for providing services under the Medicaid program,
110     except for increased costs due to hospice reimbursement under Subsection (2)(b).
111          Section 3. Section 26B-3-108 is amended to read:
112          26B-3-108. Administration of Medicaid program by department -- Reporting to
113     the Legislature -- Disciplinary measures and sanctions -- Funds collected -- Eligibility
114     standards -- Optional dental services costs and delivery -- Internal audits -- Health
115     opportunity accounts.
116          (1) The department shall be the single state agency responsible for the administration
117     of the Medicaid program in connection with the United States Department of Health and
118     Human Services pursuant to Title XIX of the Social Security Act.
119          (2) (a) The department shall implement the Medicaid program through administrative
120     rules in conformity with this chapter, Title 63G, Chapter 3, Utah Administrative Rulemaking

121     Act, the requirements of Title XIX, and applicable federal regulations.
122          (b) The rules adopted under Subsection (2)(a) shall include, in addition to other rules
123     necessary to implement the program:
124          (i) the standards used by the department for determining eligibility for Medicaid
125     services;
126          (ii) the services and benefits to be covered by the Medicaid program;
127          (iii) reimbursement methodologies for providers under the Medicaid program; and
128          (iv) a requirement that:
129          (A) a person receiving Medicaid services shall participate in the electronic exchange of
130     clinical health records established in accordance with Section 26B-8-411 unless the individual
131     opts out of participation;
132          (B) prior to enrollment in the electronic exchange of clinical health records the enrollee
133     shall receive notice of enrollment in the electronic exchange of clinical health records and the
134     right to opt out of participation at any time; and
135          (C) [beginning July 1, 2012, when] when the program sends enrollment or renewal
136     information to the enrollee and when the enrollee logs onto the program's website, the enrollee
137     shall receive notice of the right to opt out of the electronic exchange of clinical health records.
138          (3) (a) The department shall, in accordance with Subsection (3)(b), report to the Social
139     Services Appropriations Subcommittee when the department:
140          (i) implements a change in the Medicaid State Plan;
141          (ii) initiates a new Medicaid waiver;
142          (iii) initiates an amendment to an existing Medicaid waiver;
143          (iv) applies for an extension of an application for a waiver or an existing Medicaid
144     waiver;
145          (v) applies for or receives approval for a change in any capitation rate within the
146     Medicaid program; or
147          (vi) initiates a rate change that requires public notice under state or federal law.
148          (b) The report required by Subsection (3)(a) shall:
149          (i) be submitted to the Social Services Appropriations Subcommittee prior to the
150     department implementing the proposed change; and
151          (ii) include:

152          (A) a description of the department's current practice or policy that the department is
153     proposing to change;
154          (B) an explanation of why the department is proposing the change;
155          (C) the proposed change in services or reimbursement, including a description of the
156     effect of the change;
157          (D) the effect of an increase or decrease in services or benefits on individuals and
158     families;
159          (E) the degree to which any proposed cut may result in cost-shifting to more expensive
160     services in health or human service programs; and
161          (F) the fiscal impact of the proposed change, including:
162          (I) the effect of the proposed change on current or future appropriations from the
163     Legislature to the department;
164          (II) the effect the proposed change may have on federal matching dollars received by
165     the state Medicaid program;
166          (III) any cost shifting or cost savings within the department's budget that may result
167     from the proposed change; and
168          (IV) identification of the funds that will be used for the proposed change, including any
169     transfer of funds within the department's budget.
170          (4) Any rules adopted by the department under Subsection (2) are subject to review and
171     reauthorization by the Legislature in accordance with Section 63G-3-502.
172          (5) The department may, in its discretion, contract with other qualified agencies for
173     services in connection with the administration of the Medicaid program, including:
174          (a) the determination of the eligibility of individuals for the program;
175          (b) recovery of overpayments; and
176          (c) consistent with Section 26B-3-1113, and to the extent permitted by law and quality
177     control services, enforcement of fraud and abuse laws.
178          (6) The department shall provide, by rule, disciplinary measures and sanctions for
179     Medicaid providers who fail to comply with the rules and procedures of the program, provided
180     that sanctions imposed administratively may not extend beyond:
181          (a) termination from the program;
182          (b) recovery of claim reimbursements incorrectly paid; and

183          (c) those specified in Section 1919 of Title XIX of the federal Social Security Act.
184          (7) (a) Funds collected as a result of a sanction imposed under Section 1919 of Title
185     XIX of the federal Social Security Act shall be deposited [in] into the General Fund as
186     dedicated credits to be used by the division in accordance with the requirements of Section
187     1919 of Title XIX of the federal Social Security Act.
188          (b) In accordance with Section 63J-1-602.2, sanctions collected under this Subsection
189     (7) are nonlapsing.
190          (8) (a) In determining whether an applicant or recipient is eligible for a service or
191     benefit under this part or Part 9, Utah Children's Health Insurance Program, the department
192     shall, if Subsection (8)(b) is satisfied, exclude from consideration one passenger vehicle
193     designated by the applicant or recipient.
194          (b) Before Subsection (8)(a) may be applied:
195          (i) the federal government shall:
196          (A) determine that Subsection (8)(a) may be implemented within the state's existing
197     public assistance-related waivers as of January 1, 1999;
198          (B) extend a waiver to the state permitting the implementation of Subsection (8)(a); or
199          (C) determine that the state's waivers that permit dual eligibility determinations for
200     cash assistance and Medicaid are no longer valid; and
201          (ii) the department shall determine that Subsection (8)(a) can be implemented within
202     existing funding.
203          (9) (a) As used in this Subsection (9):
204          (i) "aged, blind, or has a disability" means an aged, blind, or disabled individual, as
205     defined in 42 U.S.C. Sec. 1382c(a)(1); and
206          (ii) "spend down" means an amount of income in excess of the allowable income
207     standard that shall be paid in cash to the department or incurred through the medical services
208     not paid by Medicaid.
209          (b) In determining whether an applicant or recipient who is aged, blind, or has a
210     disability is eligible for a service or benefit under this chapter, the department shall use 100%
211     of the federal poverty level as:
212          (i) the allowable income standard for eligibility for services or benefits; and
213          (ii) the allowable income standard for eligibility as a result of spend down.

214          (10) The department shall conduct internal audits of the Medicaid program.
215          [(11) (a) The department may apply for and, if approved, implement a demonstration
216     program for health opportunity accounts, as provided for in 42 U.S.C. Sec. 1396u-8.]
217          [(b) A health opportunity account established under Subsection (11)(a) shall be an
218     alternative to the existing benefits received by an individual eligible to receive Medicaid under
219     this chapter.]
220          [(c) Subsection (11)(a) is not intended to expand the coverage of the Medicaid
221     program.]
222          [(12)] (11) (a) (i) The department shall apply for, and if approved, implement an
223     amendment to the state plan under this Subsection [(12)] (11) for benefits for:
224          (A) medically needy pregnant women;
225          (B) medically needy children; and
226          (C) medically needy parents and caretaker relatives.
227          (ii) The department may implement the eligibility standards of Subsection [(12)(b)]
228     (11)(b) for eligibility determinations made on or after the date of the approval of the
229     amendment to the state plan.
230          (b) In determining whether an applicant is eligible for benefits described in Subsection
231     [(12)(a)(i)] (11)(a)(i), the department shall:
232          (i) disregard resources held in an account in [the] a savings plan created under Title
233     53B, Chapter 8a, Utah Educational Savings Plan, if the beneficiary of the account is:
234          (A) under the age of 26; and
235          (B) living with the account owner, as that term is defined in Section 53B-8a-102, or
236     temporarily absent from the residence of the account owner; and
237          (ii) include [the] withdrawals from an account in the Utah Educational Savings Plan as
238     resources for a benefit determination, if the [withdrawal was] withdrawals were not used for
239     qualified higher education costs as that term is defined in Section 53B-8a-102.5.
240          [(13)] (12) (a) The department may not deny or terminate eligibility for Medicaid
241     solely because an individual is:
242          (i) incarcerated; and
243          (ii) not an inmate as defined in Section 64-13-1.
244          (b) Subsection [(13)(a)] (12)(a) does not require the Medicaid program to provide

245     coverage for any services for an individual while the individual is incarcerated.
246          [(14)] (13) The department is a party to, and may intervene at any time in, any judicial
247     or administrative action:
248          (a) to which the Department of Workforce Services is a party; and
249          (b) that involves medical assistance under this chapter.
250          [(15)] (14) (a) The department may not deny or terminate eligibility for Medicaid
251     solely because a birth mother, as that term is defined in Section 78B-6-103, considers an
252     adoptive placement for the child or proceeds with an adoptive placement of the child.
253          (b) A health care provider, as that term is defined in Section 26B-3-126, may not
254     decline payment by Medicaid for covered health and medical services provided to a birth
255     mother, as that term is defined in Section 78B-6-103, who is enrolled in Utah's Medicaid
256     program and who considers an adoptive placement for the child or proceeds with an adoptive
257     placement of the child.
258          Section 4. Section 26B-3-110 is amended to read:
259          26B-3-110. Copayments by recipients -- Employer sponsored plans.
260          (1) The department shall selectively provide for enrollment fees, premiums,
261     deductions, cost sharing or other similar charges to be paid by recipients, their spouses, and
262     parents, within the limitations of federal law and regulation.
263          (2) [Beginning May 1, 2006, within] Within appropriations by the Legislature and as a
264     means to increase health care coverage among the uninsured, the department shall take steps to
265     promote increased participation in employer sponsored health insurance, including:
266          (a) maximizing the health insurance premium subsidy provided under the state's 1115
267     demonstration waiver by:
268          (i) ensuring that state funds are matched by federal funds to the greatest extent
269     allowable; and
270          (ii) as the department determines appropriate, seeking federal approval to do one or
271     more of the following:
272          (A) eliminate or otherwise modify the annual enrollment fee;
273          (B) eliminate or otherwise modify the schedule used to determine the level of subsidy
274     provided to an enrollee each year;
275          (C) reduce the maximum number of participants allowable under the subsidy program;

276     or
277          (D) otherwise modify the program in a manner that promotes enrollment in employer
278     sponsored health insurance; and
279          (b) exploring the use of other options, including the development of a waiver under the
280     Medicaid Health Insurance Flexibility Demonstration Initiative or other federal authority.
281          Section 5. Section 26B-3-111 is amended to read:
282          26B-3-111. Income and resources from institutionalized spouses.
283          (1) As used in this section:
284          (a) "Community spouse" means the spouse of an institutionalized spouse.
285          (b) (i) "Community spouse monthly income allowance" means an amount by which the
286     minimum monthly maintenance needs allowance for the spouse exceeds the amount of monthly
287     income otherwise available to the community spouse, determined without regard to the
288     allowance, except as provided in Subsection (1)(b)(ii).
289          (ii) If a court has entered an order against an institutionalized spouse for monthly
290     income for the support of the community spouse, the community spouse monthly income
291     allowance for the spouse may not be less than the amount of the monthly income so ordered.
292          (c) "Community spouse resource allowance" is the amount of combined resources that
293     are protected for a community spouse living in the community, which the division shall
294     establish by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
295     Rulemaking Act, based on the amounts established by the United States Department of Health
296     and Human Services.
297          (d) "Excess shelter allowance" for a community spouse means the amount by which the
298     sum of the spouse's expense for rent or mortgage payment, taxes, and insurance, and in the case
299     of condominium or cooperative, required maintenance charge, for the community spouse's
300     principal residence and the spouse's actual expenses for electricity, natural gas, and water
301     utilities or, at the discretion of the department, the federal standard utility allowance under
302     SNAP as defined in Section 35A-1-102, exceeds 30% of the amount described in Subsection
303     (9).
304          (e) "Family member" means a minor dependent child, dependent parents, or dependent
305     sibling of the institutionalized spouse or community spouse who are residing with the
306     community spouse.

307          (f) (i) "Institutionalized spouse" means a person who is residing in a nursing facility
308     and is married to a spouse who is not in a nursing facility.
309          (ii) An "institutionalized spouse" does not include a person who is not likely to reside
310     in a nursing facility for at least 30 consecutive days.
311          (g) "Nursing care facility" means the same as that term is defined in Section
312     26B-2-201.
313          (2) The division shall comply with this section when determining eligibility for
314     medical assistance for an institutionalized spouse.
315          (3) [For services furnished during a calendar year beginning on or after January 1,
316     1999, the] The community spouse resource allowance shall be increased by the division by an
317     amount as determined annually by CMS.
318          (4) The division shall compute, as of the beginning of the first continuous period of
319     institutionalization of the institutionalized spouse:
320          (a) the total value of the resources to the extent either the institutionalized spouse or
321     the community spouse has an ownership interest; and
322          (b) a spousal share, which is 1/2 of the resources described in Subsection (4)(a).
323          (5) At the request of an institutionalized spouse or a community spouse, at the
324     beginning of the first continuous period of institutionalization of the institutionalized spouse
325     and upon the receipt of relevant documentation of resources, the division shall promptly assess
326     and document the total value described in Subsection (4)(a) and shall provide a copy of that
327     assessment and documentation to each spouse and shall retain a copy of the assessment. When
328     the division provides a copy of the assessment, it shall include a notice stating that the spouse
329     may request a hearing under Subsection (11).
330          (6) When determining eligibility for medical assistance under this chapter:
331          (a) Except as provided in Subsection (6)(b), all resources held by either the
332     institutionalized spouse, community spouse, or both, are considered to be available to the
333     institutionalized spouse.
334          (b) Resources are considered to be available to the institutionalized spouse only to the
335     extent that the amount of those resources exceeds the community spouse resource allowance at
336     the time of application for medical assistance under this chapter.
337          (7) (a) The division may not find an institutionalized spouse to be ineligible for

338     medical assistance by reason of resources determined under Subsection (5) to be available for
339     the cost of care when:
340          (i) the institutionalized spouse has assigned to the state any rights to support from the
341     community spouse;
342          (ii) except as provided in Subsection (7)(b), the institutionalized spouse lacks the
343     ability to execute an assignment due to physical or mental impairment; or
344          (iii) the division determines that denial of medical assistance would cause an undue
345     burden.
346          (b) Subsection (7)(a)(ii) does not prevent the division from seeking a court order for an
347     assignment of support.
348          (8) During the continuous period in which an institutionalized spouse is in an
349     institution and after the month in which an institutionalized spouse is eligible for medical
350     assistance, the resources of the community spouse may not be considered to be available to the
351     institutionalized spouse.
352          (9) When an institutionalized spouse is determined to be eligible for medical
353     assistance, in determining the amount of the spouse's income that is to be applied monthly for
354     the cost of care in the nursing care facility, the division shall deduct from the spouse's monthly
355     income the following amounts in the following order:
356          (a) a personal needs allowance, the amount of which is determined by the division;
357          (b) a community spouse monthly income allowance, but only to the extent that the
358     income of the institutionalized spouse is made available to, or for the benefit of, the community
359     spouse;
360          (c) a family allowance for each family member, equal to at least 1/3 of the amount that
361     the amount described in Subsection (10)(a) exceeds the amount of the family member's
362     monthly income; and
363          (d) amounts for incurred expenses for the medical or remedial care for the
364     institutionalized spouse.
365          (10) The division shall establish a minimum monthly maintenance needs allowance for
366     each community spouse that includes:
367          (a) an amount established by the division by rule made in accordance with Title 63G,
368     Chapter 3, Utah Administrative Rulemaking Act, based on the amounts established by the

369     United States Department of Health and Human Services; and
370          (b) an excess shelter allowance.
371          (11) (a) An institutionalized spouse or a community spouse may request a hearing with
372     respect to the determinations described in Subsections (11)(e)(i) through (v) if an application
373     for medical assistance has been made on behalf of the institutionalized spouse.
374          (b) A hearing under this subsection regarding the community spouse resource
375     allowance shall be held by the division within 90 days from the date of the request for the
376     hearing.
377          (c) If either spouse establishes that the community spouse needs income, above the
378     level otherwise provided by the minimum monthly maintenance needs allowance, due to
379     exceptional circumstances resulting in significant financial duress, there shall be substituted,
380     for the minimum monthly maintenance needs allowance provided under Subsection (10), an
381     amount adequate to provide additional income as is necessary.
382          (d) If either spouse establishes that the community spouse resource allowance, in
383     relation to the amount of income generated by the allowance is inadequate to raise the
384     community spouse's income to the minimum monthly maintenance needs allowance, there shall
385     be substituted, for the community spouse resource allowance, an amount adequate to provide a
386     minimum monthly maintenance needs allowance.
387          (e) A hearing may be held under this subsection if either the institutionalized spouse or
388     community spouse is dissatisfied with a determination of:
389          (i) the community spouse monthly income allowance;
390          (ii) the amount of monthly income otherwise available to the community spouse;
391          (iii) the computation of the spousal share of resources under Subsection (4);
392          (iv) the attribution of resources under Subsection (6); or
393          (v) the determination of the community spouse resource allocation.
394          (12) (a) An institutionalized spouse may transfer an amount equal to the community
395     spouse resource allowance, but only to the extent the resources of the institutionalized spouse
396     are transferred to or for the sole benefit of the community spouse.
397          (b) The transfer under Subsection (12)(a) shall be made as soon as practicable after the
398     date of the initial determination of eligibility, taking into account the time necessary to obtain a
399     court order under Subsection (12)(c).

400          (c) Part 10, Medical Benefits Recovery, does not apply if a court has entered an order
401     against an institutionalized spouse for the support of the community spouse.
402          Section 6. Section 26B-3-112 is amended to read:
403          26B-3-112. Maximizing use of premium assistance programs -- Utah's Premium
404     Partnership for Health Insurance.
405          (1) (a) The department shall seek to maximize the use of Medicaid and Children's
406     Health Insurance Program funds for assistance in the purchase of private health insurance
407     coverage for Medicaid-eligible and non-Medicaid-eligible individuals.
408          (b) The department's efforts to expand the use of premium assistance shall:
409          (i) include, as necessary, seeking federal approval under all Medicaid and Children's
410     Health Insurance Program premium assistance provisions of federal law, including provisions
411     of PPACA;
412          (ii) give priority to, but not be limited to, expanding the state's Utah Premium
413     Partnership for Health Insurance [Program] program, including as required under Subsection
414     (2); and
415          (iii) encourage the enrollment of all individuals within a household in the same plan,
416     where possible, including enrollment in a plan that allows individuals within the household
417     transitioning out of Medicaid to retain the same network and benefits they had while enrolled
418     in Medicaid.
419          (2) The department shall seek federal approval of an amendment to the state's Utah
420     Premium Partnership for Health Insurance program to adjust the eligibility determination for
421     single adults and parents who have an offer of employer sponsored insurance. The amendment
422     shall:
423          (a) be within existing appropriations for the Utah Premium Partnership for Health
424     Insurance program; and
425          (b) provide that adults who are up to 200% of the federal poverty level are eligible for
426     premium subsidies in the Utah Premium Partnership for Health Insurance program.
427          (3) For the fiscal year 2020-21, the department shall seek authority to increase the
428     maximum premium subsidy per month for adults under the Utah Premium Partnership for
429     Health Insurance program to $300.
430          (4) [Beginning with the fiscal year 2021-22, and in] In each [subsequent] fiscal year,

431     the department may increase premium subsidies for single adults and parents who have an offer
432     of employer-sponsored insurance to keep pace with the increase in insurance premium costs,
433     subject to appropriation of additional funding.
434          Section 7. Section 26B-3-126 is amended to read:
435          26B-3-126. Patient notice of health care provider privacy practices.
436          (1) (a) For purposes of this section:
437          (i) "Health care provider" means a health care provider as defined in Section
438     78B-3-403 who:
439          (A) receives payment for medical services from the Medicaid program established in
440     this chapter, or the Children's Health Insurance Program established in Section 26B-3-902; and
441          (B) submits a patient's personally identifiable information to the Medicaid eligibility
442     database or the Children's Health Insurance Program eligibility database.
443          (ii) "HIPAA" means 45 C.F.R. Parts 160, 162, and 164, Health Insurance Portability
444     and Accountability Act of 1996, as amended.
445          (b) [Beginning July 1, 2013, this] This section applies to the Medicaid program, the
446     Children's Health Insurance Program created in Section 26B-3-902, and a health care provider.
447          (2) A health care provider shall, as part of the notice of privacy practices required by
448     HIPAA, provide notice to the patient or the patient's personal representative that the health care
449     provider either has, or may submit, personally identifiable information about the patient to the
450     Medicaid eligibility database and the Children's Health Insurance Program eligibility database.
451          (3) The Medicaid program and the Children's Health Insurance Program may not give a
452     health care provider access to the Medicaid eligibility database or the Children's Health
453     Insurance Program eligibility database unless the health care provider's notice of privacy
454     practices complies with Subsection (2).
455          (4) The department may adopt an administrative rule to establish uniform language for
456     the state requirement regarding notice of privacy practices to patients required under
457     Subsection (2).
458          Section 8. Section 26B-3-136 is amended to read:
459          26B-3-136. Children's Health Care Coverage Program.
460          (1) As used in this section:
461          (a) "CHIP" means the Children's Health Insurance Program created in Section

462     26B-3-902.
463          (b) "Program" means the Children's Health Care Coverage Program created in
464     Subsection (2).
465          (2) (a) There is created the Children's Health Care Coverage Program within the
466     department.
467          (b) The purpose of the program is to:
468          (i) promote health insurance coverage for children in accordance with Section
469     26B-3-124;
470          (ii) conduct research regarding families who are eligible for Medicaid and CHIP to
471     determine awareness and understanding of available coverage;
472          (iii) analyze trends in disenrollment and identify reasons that families may not be
473     renewing enrollment, including any barriers in the process of renewing enrollment;
474          (iv) administer surveys to recently enrolled CHIP members, as defined in Section
475     26B-3-901, and children's Medicaid enrollees to identify:
476          (A) how the enrollees learned about coverage; and
477          (B) any barriers during the application process;
478          (v) develop promotional material regarding CHIP and children's Medicaid eligibility,
479     including outreach through social media, video production, and other media platforms;
480          (vi) identify ways that the eligibility website for enrollment in CHIP and children's
481     Medicaid can be redesigned to increase accessibility and enhance the user experience;
482          (vii) identify outreach opportunities, including partnerships with community
483     organizations including:
484          (A) schools;
485          (B) small businesses;
486          (C) unemployment centers;
487          (D) parent-teacher associations; and
488          (E) youth athlete clubs and associations; and
489          (viii) develop messaging to increase awareness of coverage options that are available
490     through the department.
491          (3) (a) The department may not delegate implementation of the program to a private
492     entity.

493          (b) Notwithstanding Subsection (3)(a), the department may contract with a media
494     agency to conduct the activities described in Subsection (2)(b)(iv) and (vii).
495          Section 9. Section 26B-3-201 is amended to read:
496          26B-3-201. Independent foster care adolescents.
497          (1) As used in this section, an "independent foster care adolescent" includes any
498     individual who reached 18 years old while in the custody of the department if the department
499     was the primary case manager, or a federally recognized Indian tribe.
500          (2) An independent foster care adolescent is eligible, when funds are available, for
501     Medicaid coverage until the individual reaches 21 years old.
502          [(3) Before July 1, 2006, the division shall submit a state Medicaid Plan amendment to
503     CMS to provide medical coverage for independent foster care adolescents effective fiscal year
504     2006-07.]
505          Section 10. Section 26B-3-203 is amended to read:
506          26B-3-203. Base budget appropriations for Medicaid accountable care
507     organizations and behavioral health plans -- Forecast of behavioral health services cost.
508          (1) As used in this section:
509          (a) "ACO" means [an] a Medicaid accountable care organization that contracts with the
510     state's Medicaid program for:
511          (i) physical health services; or
512          (ii) integrated physical and behavioral health services.
513          (b) "Base budget" means the same as that term is defined in legislative rule.
514          (c) "Behavioral health plan" means a managed care or fee -for -service delivery system
515     that contracts with or is operated by the department to provide behavioral health services to
516     Medicaid eligible individuals.
517          (d) "Behavioral health services" means mental health or substance use treatment or
518     services.
519          (e) "General Fund growth factor" means the amount determined by dividing the next
520     fiscal year ongoing General Fund revenue estimate by current fiscal year ongoing
521     appropriations from the General Fund.
522          (f) "Next fiscal year ongoing General Fund revenue estimate" means the next fiscal
523     year ongoing General Fund revenue estimate identified by the Executive Appropriations

524     Committee, in accordance with legislative rule, for use by the Office of the Legislative Fiscal
525     Analyst in preparing budget recommendations.
526          (g) "Member" means an enrollee.
527          [(g)] (h) "PMPM" means per-member-per-month funding.
528          (2) If the General Fund growth factor is less than 100%, the next fiscal year base
529     budget shall, subject to Subsection (5), include an appropriation to the department in an
530     amount necessary to ensure that the next fiscal year PMPM for ACOs and behavioral health
531     plans equals the current fiscal year PMPM for the ACOs and behavioral health plans multiplied
532     by 100%.
533          (3) If the General Fund growth factor is greater than or equal to 100%, but less than
534     102%, the next fiscal year base budget shall, subject to Subsection (5), include an appropriation
535     to the department in an amount necessary to ensure that the next fiscal year PMPM for ACOs
536     and behavioral health plans equals the current fiscal year PMPM for the ACOs and behavioral
537     health plans multiplied by the General Fund growth factor.
538          (4) If the General Fund growth factor is greater than or equal to 102%, the next fiscal
539     year base budget shall, subject to Subsection (5), include an appropriation to the department in
540     an amount necessary to ensure that the next fiscal year PMPM for ACOs and behavioral health
541     plans is greater than or equal to the current fiscal year PMPM for the ACOs and behavioral
542     health plans multiplied by 102% and less than or equal to the current fiscal year PMPM for the
543     ACOs and behavioral health plans multiplied by the General Fund growth factor.
544          (5) The appropriations provided to the department for behavioral health plans under
545     this section shall be reduced by the amount contributed by counties in the current fiscal year for
546     behavioral health plans in accordance with Subsections 17-43-201(5)(k) and
547     17-43-301(6)(a)(x).
548          (6) In order for the department to estimate the impact of Subsections (2) through (4)
549     before identification of the next fiscal year ongoing General Fund revenue estimate, the
550     Governor's Office of Planning and Budget shall, in cooperation with the Office of the
551     Legislative Fiscal Analyst, develop an estimate of ongoing General Fund revenue for the next
552     fiscal year and provide the estimate to the department no later than November 1 of each year.
553          (7) The Office of the Legislative Fiscal Analyst shall include an estimate of the cost of
554     behavioral health services in any state Medicaid funding or savings forecast that is completed

555     in coordination with the department and the Governor's Office of Planning and Budget.
556          Section 11. Section 26B-3-205 is amended to read:
557          26B-3-205. Long-term care insurance partnership.
558          (1) As used in this section:
559          (a) "Qualified long-term care insurance contract" is as defined in 26 U.S.C. Sec.
560     7702B(b).
561          (b) "Qualified long-term care insurance partnership" is as defined in 42 U.S.C. Sec.
562     1396p(b)(1)(C)(iii).
563          (c) "State plan amendment" means an amendment to the state Medicaid plan drafted by
564     the department in compliance with this section.
565          (2) [No later than July 1, 2014, the] The department shall seek federal approval of a
566     state plan amendment that creates a qualified long-term care insurance partnership.
567          (3) The department may make rules to comply with federal laws and regulations
568     relating to qualified long-term care insurance partnerships and qualified long-term care
569     insurance contracts.
570          Section 12. Section 26B-3-217 is amended to read:
571          26B-3-217. Medicaid waiver for coverage of qualified inmates leaving prison or
572     jail.
573          (1) As used in this section:
574          (a) "Correctional facility" means:
575          (i) a county jail;
576          [(ii) the Department of Corrections, created in Section 64-13-2; or]
577          [(iii)] (ii) a prison, penitentiary, or other institution operated by or under contract with
578     the Department of Corrections for the confinement of an offender, as defined in Section
579     64-13-1[.]; or
580          (iii) a juvenile correctional facility.
581          (b) "Limited Medicaid benefit" means:
582          (i) reentry case management services;
583          (ii) physical and behavioral health clinical services;
584          (iii) medications and medication administration;
585          (iv) medication-assisted treatment, including all United States Food and Drug

586     Administration approved medications, including coverage for counseling; and
587          (v) other services as determined by rule made in accordance with Title 63G, Chapter 3,
588     Utah Administrative Rulemaking Act.
589          (c) "Qualified inmate" means an individual who:
590          (i) is incarcerated in a correctional facility; and
591          (ii) is ineligible for Medicaid as a result of incarceration but would otherwise qualify
592     under the state plan.
593          [(ii) has:]
594          [(A) a chronic physical or behavioral health condition;]
595          [(B) a mental illness, as defined in Section 26B-5-301; or]
596          [(C) an opioid use disorder.]
597          (2) [Before July 1, 2020] Subject to appropriation, before July 1, 2024, the division
598     shall apply for a Medicaid waiver [or a state plan amendment], or amend an existing Medicaid
599     waiver application, with CMS to offer a program to provide a limited Medicaid [coverage]
600     benefit to a qualified inmate for up to [30] 90 days immediately before the day on which the
601     qualified inmate is released from a correctional facility.
602          (3) (a) Monetary savings that result from the use of federal funds provided under this
603     section shall be used in accordance with a reinvestment plan as mandated by CMS.
604          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
605     department shall make rules for a participating county to establish a reinvestment plan
606     described in Subsection (3)(a).
607          [(3)] (4) If the waiver [or state plan amendment] or amended waiver described in
608     Subsection (2) is approved, the department shall report to the Health and Human Services
609     Interim Committee each year before November 30 while the waiver [or state plan amendment]
610     is in effect regarding:
611          (a) the number of qualified inmates served under the program;
612          (b) the cost of the program; and
613          (c) the effectiveness of the program, including:
614          (i) any reduction in the number of emergency room visits or hospitalizations by
615     inmates after release from a correctional facility;
616          (ii) any reduction in the number of inmates undergoing inpatient treatment after release

617     from a correctional facility;
618          (iii) any reduction in overdose rates and deaths of inmates after release from a
619     correctional facility; and
620          (iv) any other costs or benefits as a result of the program.
621          [(4) If the waiver or state plan amendment described in Subsection (2) is approved, a
622     county that is responsible for the cost of a qualified inmate's medical care shall provide the
623     required matching funds to the state for:]
624          [(a) any costs to enroll the qualified inmate for the Medicaid coverage described in
625     Subsection (2);]
626          [(b) any administrative fees for the Medicaid coverage described in Subsection (2);
627     and]
628          [(c) the Medicaid coverage that is provided to the qualified inmate under Subsection
629     (2).]
630          Section 13. Section 26B-3-224 is amended to read:
631          26B-3-224. Medicaid waiver for increased integrated health care reimbursement.
632          (1) As used in this section:
633          (a) "Integrated health care setting" means a health care or behavioral health care setting
634     that provides integrated physical and behavioral health care services.
635          (b) "Local mental health authority" means a local mental health authority described in
636     Section 17-43-301.
637          (2) The department shall develop a proposal to allow the state Medicaid program to
638     reimburse a local mental health authority for covered physical health care services provided in
639     an integrated health care setting to Medicaid eligible individuals.
640          (3) [Before December 31, 2022, the] The department shall apply for a Medicaid waiver
641     or a state plan amendment with CMS to implement the proposal described in Subsection (2).
642          (4) If the waiver or state plan amendment described in Subsection (3) is approved, the
643     department shall:
644          (a) implement the proposal described in Subsection (2); and
645          (b) while the waiver or state plan amendment is in effect, submit a report to the Health
646     and Human Services Interim Committee each year before November 30 detailing:
647          (i) the number of patients served under the waiver or state plan amendment;

648          (ii) the cost of the waiver or state plan amendment; and
649          (iii) any benefits of the waiver or state plan amendment.
650          Section 14. Section 26B-3-226 is amended to read:
651          26B-3-226. Medicaid waiver for rural healthcare for chronic conditions.
652          (1) As used in this section:
653          (a) "Qualified condition" means:
654          (i) diabetes;
655          (ii) high blood pressure;
656          (iii) congestive heart failure;
657          (iv) asthma;
658          (v) obesity;
659          (vi) chronic obstructive pulmonary disease; or
660          (vii) chronic kidney disease.
661          (b) "Qualified enrollee" means an individual who:
662          (i) is enrolled in the Medicaid program;
663          (ii) has been diagnosed as having a qualified condition; and
664          (iii) is not enrolled in an accountable care organization.
665          (2) Before January 1, 2024, the department shall apply for a Medicaid waiver with [the
666     Centers for Medicare and Medicaid Services] CMS to implement the coverage described in
667     Subsection (3) for a three-year pilot program.
668          (3) If the waiver described in Subsection (2) is approved, the Medicaid program shall
669     contract with a single entity to provide coordinated care for the following services to each
670     qualified enrollee:
671          (a) a telemedicine platform for the qualified enrollee to use;
672          (b) an in-home initial visit to the qualified enrollee;
673          (c) daily remote monitoring of the qualified enrollee's qualified condition;
674          (d) all services in the qualified enrollee's language of choice;
675          (e) individual peer monitoring and coaching for the qualified enrollee;
676          (f) available access for the qualified enrollee to video-enabled consults and
677     voice-enabled consults 24 hours a day, seven days a week;
678          (g) in-home biometric monitoring devices to monitor the qualified enrollee's qualified

679     condition; and
680          (h) at-home medication delivery to the qualified enrollee.
681          (4) The Medicaid program may not provide the coverage described in Subsection (3)
682     until the waiver is approved.
683          (5) Each year the waiver is active, the department shall submit a report to the Health
684     and Human Services Interim Committee before November 30 detailing:
685          (a) the number of patients served under the waiver;
686          (b) the cost of the waiver; and
687          (c) any benefits of the waiver, including an estimate of:
688          (i) the reductions in emergency room visits or hospitalizations;
689          (ii) the reductions in 30-day hospital readmissions for the same diagnosis;
690          (iii) the reductions in complications related to qualified conditions; and
691          (iv) any improvements in health outcomes from baseline assessments.
692          Section 15. Section 26B-3-401 is amended to read:
693          26B-3-401. Definitions.
694          As used in this part:
695          (1) (a) "Nursing care facility" means:
696          (i) a nursing care facility as defined in Section 26B-2-201;
697          (ii) [beginning January 1, 2006, a] a designated swing bed in:
698          (A) a general acute hospital as defined in Section 26B-2-201; and
699          (B) a critical access hospital which meets the criteria of 42 U.S.C. Sec. 1395i-4(c)(2)
700     (1998); and
701          (iii) an intermediate care facility for people with an intellectual disability that is
702     licensed under Section 26B-2-212.
703          (b) "Nursing care facility" does not include:
704          (i) the Utah State Developmental Center;
705          (ii) the Utah State Hospital;
706          (iii) a general acute hospital, specialty hospital, or small health care facility as those
707     terms are defined in Section 26B-2-201; or
708          (iv) a Utah State Veterans Home.
709          (2) "Patient day" means each calendar day in which an individual patient is admitted to

710     the nursing care facility during a calendar month, even if on a temporary leave of absence from
711     the facility.
712          Section 16. Section 26B-3-403 is amended to read:
713          26B-3-403. Collection, remittance, and payment of nursing care facilities
714     assessment.
715          (1) [(a) Beginning July 1, 2004, an] An assessment is imposed upon each nursing care
716     facility in the amount designated in Subsection (1)(c).
717          [(b)] (a) (i) The department shall establish by rule, a uniform rate per non-Medicare
718     patient day that may not exceed 6% of the total gross revenue for services provided to patients
719     of all nursing care facilities licensed in this state.
720          (ii) For purposes of Subsection (1)(b)(i), total revenue does not include charitable
721     contribution received by a nursing care facility.
722          [(c)] (b) The department shall calculate the assessment imposed under Subsection
723     (1)(a) by multiplying the total number of patient days of care provided to non-Medicare
724     patients by the nursing care facility, as provided to the department pursuant to Subsection
725     (3)(a), by the uniform rate established by the department pursuant to Subsection (1)(b).
726          (2) (a) The assessment imposed by this part is due and payable on a monthly basis on
727     or before the last day of the month next succeeding each monthly period.
728          (b) The collecting agent for this assessment shall be the department which is vested
729     with the administration and enforcement of this part, including the right to audit records of a
730     nursing care facility related to patient days of care for the facility.
731          (c) The department shall forward proceeds from the assessment imposed by this part to
732     the state treasurer for deposit in the expendable special revenue fund as specified in Section
733     26B-1-332.
734          (3) Each nursing care facility shall, on or before the end of the month next succeeding
735     each calendar monthly period, file with the department:
736          (a) a report which includes:
737          (i) the total number of patient days of care the facility provided to non-Medicare
738     patients during the preceding month;
739          (ii) the total gross revenue the facility earned as compensation for services provided to
740     patients during the preceding month; and

741          (iii) any other information required by the department; and
742          (b) a return for the monthly period, and shall remit with the return the assessment
743     required by this part to be paid for the period covered by the return.
744          (4) Each return shall contain information and be in the form the department prescribes
745     by rule.
746          (5) The assessment as computed in the return is an allowable cost for Medicaid
747     reimbursement purposes.
748          (6) The department may by rule, extend the time for making returns and paying the
749     assessment.
750          (7) Each nursing care facility that fails to pay any assessment required to be paid to the
751     state, within the time required by this part, or that fails to file a return as required by this part,
752     shall pay, in addition to the assessment, penalties and interest as provided in Section
753     26B-3-404.
754          Section 17. Section 26B-3-503 is amended to read:
755          26B-3-503. Assessment.
756          (1) An assessment is imposed on each private hospital:
757          [(a) beginning upon the later of CMS approval of:]
758          [(i) the health coverage improvement program waiver under Section 26B-3-207; and]
759          [(ii) the assessment under this part;]
760          [(b)] (a) in the amount designated in Sections 26B-3-506 and 26B-3-507; and
761          [(c)] (b) in accordance with Section 26B-3-504.
762          (2) Subject to Section 26B-3-505, the assessment imposed by this part is due and
763     payable on a quarterly basis, after payment of the outpatient upper payment limit supplemental
764     payments under Section 26B-3-511 have been paid.
765          [(3) The first quarterly payment is not due until at least three months after the earlier of
766     the effective dates of the coverage provided through:]
767          [(a) the health coverage improvement program;]
768          [(b) the enhancement waiver program; or]
769          [(c) the Medicaid waiver expansion.]
770          Section 18. Section 26B-3-504 is amended to read:
771          26B-3-504. Collection of assessment -- Deposit of revenue -- Rulemaking.

772          (1) The collecting agent for the assessment imposed under Section 26B-3-503 is the
773     department.
774          (2) The department is vested with the administration and enforcement of this part, and
775     may make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
776     Act, necessary to:
777          (a) collect the assessment, intergovernmental transfers, and penalties imposed under
778     this part;
779          (b) audit records of a facility that:
780          (i) is subject to the assessment imposed by this part; and
781          (ii) does not file a Medicare cost report; and
782          (c) select a report similar to the Medicare cost report if Medicare no longer uses a
783     Medicare cost report.
784          (3) The department shall:
785          (a) administer the assessment in this part separately from the assessment in Part 7,
786     Hospital Provider Assessment; and
787          (b) deposit assessments collected under this part into the Medicaid Expansion Fund
788     [created by Section 26B-1-315].
789          Section 19. Section 26B-3-511 is amended to read:
790          26B-3-511. Outpatient upper payment limit supplemental payments.
791          (1) [Beginning on the effective date of the assessment imposed under this part, and for
792     each subsequent fiscal year, the] The department shall [implement] administer an outpatient
793     upper payment limit program for private hospitals that [shall supplement] supplements the
794     reimbursement to private hospitals in accordance with Subsection (2).
795          (2) The division shall ensure that supplemental payment to Utah private hospitals
796     under Subsection (1):
797          (a) does not exceed the positive upper payment limit gap; and
798          (b) is allocated based on the Medicaid state plan.
799          (3) The department shall use the same outpatient data to allocate the payments under
800     Subsection (2) and to calculate the upper payment limit gap.
801          (4) The supplemental payments to private hospitals under Subsection (1) are payable
802     for outpatient hospital services provided on or after the later of:

803          (a) July 1, 2016;
804          (b) the effective date of the Medicaid state plan amendment necessary to implement the
805     payments under this section; or
806          (c) the effective date of the coverage provided through the health coverage
807     improvement program waiver.
808          Section 20. Section 26B-3-512 is amended to read:
809          26B-3-512. Repeal of assessment.
810          (1) The assessment imposed by this part shall be repealed when:
811          (a) the executive director certifies that:
812          (i) action by Congress is in effect that disqualifies the assessment imposed by this part
813     from counting toward state Medicaid funds available to be used to determine the amount of
814     federal financial participation;
815          (ii) a decision, enactment, or other determination by the Legislature or by any court,
816     officer, department, or agency of the state, or of the federal government, is in effect that:
817          (A) disqualifies the assessment from counting toward state Medicaid funds available to
818     be used to determine federal financial participation for Medicaid matching funds; or
819          (B) creates for any reason a failure of the state to use the assessments for at least one of
820     the Medicaid programs described in this part; or
821          (iii) a change is in effect that reduces the aggregate hospital inpatient and outpatient
822     payment rate below the aggregate hospital inpatient and outpatient payment rate for July 1,
823     2015; or
824          (b) this part is repealed in accordance with Section 63I-1-226.
825          (2) If the assessment is repealed under Subsection (1):
826          (a) the division may not collect any assessment or intergovernmental transfer under this
827     part;
828          (b) the department shall disburse money in the [special] Medicaid Expansion Fund in
829     accordance with the requirements in Subsection 26B-1-315(4), to the extent federal matching is
830     not reduced by CMS due to the repeal of the assessment;
831          (c) any money remaining in the Medicaid Expansion Fund after the disbursement
832     described in Subsection (2)(b) that was derived from assessments imposed by this part shall be
833     refunded to the hospitals in proportion to the amount paid by each hospital for the last three

834     fiscal years; and
835          (d) any money remaining in the Medicaid Expansion Fund after the disbursements
836     described in Subsections (2)(b) and (c) shall be deposited into the General Fund by the end of
837     the fiscal year that the assessment is suspended.
838          Section 21. Section 26B-3-605 is amended to read:
839          26B-3-605. Hospital share.
840          (1) The hospital share is[: (a) for the period from April 1, 2019, through June 30, 2020,
841     $15,000,000; and (b) beginning July 1, 2020,] 100% of the state's net cost of [the qualified]
842     Medicaid expansion, after deducting appropriate offsets and savings [expected] as a result of
843     implementing [the qualified] Medicaid expansion, including:
844          [(i)] (a) savings from:
845          [(A)] (i) the Medicaid program's former Primary Care Network program;
846          [(B)] (ii) the health coverage improvement program[, as defined in Section
847     26B-3-207];
848          [(C)] (iii) the state portion of inpatient prison medical coverage;
849          [(D)] (iv) behavioral health coverage; and
850          [(E)] (v) county contributions to the non-federal share of Medicaid expenditures; and
851          [(ii)] (b) any funds appropriated to the Medicaid Expansion Fund.
852          (2) (a) [Beginning July 1, 2020, the] The hospital share is capped at no more than
853     $15,000,000 annually.
854          (b) [Beginning July 1, 2020, the] The division shall prorate the cap specified in
855     Subsection (2)(a) in any year in which [the qualified] Medicaid expansion is not in effect for
856     the full fiscal year.
857          Section 22. Section 26B-3-607 is amended to read:
858          26B-3-607. Calculation of assessment.
859          (1) (a) Except as provided in Subsection (1)(b), each private hospital shall pay an
860     annual assessment due on the last day of each quarter in an amount calculated by the division at
861     a uniform assessment rate for each hospital discharge, in accordance with this section.
862          (b) A private teaching hospital with more than 425 beds and more than 60 residents
863     shall pay an assessment rate 2.5 times the uniform rate established under Subsection (1)(c).
864          (c) The division shall calculate the uniform assessment rate described in Subsection

865     (1)(a) by dividing the hospital share for assessed private hospitals, as described in Subsection
866     26B-3-606(1), by the sum of:
867          (i) the total number of discharges for assessed private hospitals that are not a private
868     teaching hospital; and
869          (ii) 2.5 times the number of discharges for a private teaching hospital, described in
870     Subsection (1)(b).
871          (d) The division may make rules in accordance with Title 63G, Chapter 3, Utah
872     Administrative Rulemaking Act, to adjust the formula described in Subsection (1)(c) to address
873     unforeseen circumstances in the administration of the assessment under this part.
874          (e) The division shall apply any quarterly changes to the uniform assessment rate
875     uniformly to all assessed private hospitals.
876          (2) Except as provided in Subsection (3), for each state fiscal year, the division shall
877     determine a hospital's discharges as [follows: (a) for state fiscal year 2019, the hospital's cost
878     report data for the hospital's fiscal year ending between July 1, 2015, and June 30, 2016; and
879     (b) for each subsequent state fiscal year,] the hospital's cost report data for the hospital's fiscal
880     year that ended in the state fiscal year two years before the assessment fiscal year.
881          (3) (a) If a hospital's fiscal year Medicare cost report is not contained in the [Centers
882     for Medicare and Medicaid Services'] CMS Healthcare Cost Report Information System file:
883          (i) the hospital shall submit to the division a copy of the hospital's Medicare cost report
884     applicable to the assessment year; and
885          (ii) the division shall determine the hospital's discharges.
886          (b) If a hospital is not certified by the Medicare program and is not required to file a
887     Medicare cost report:
888          (i) the hospital shall submit to the division the hospital's applicable fiscal year
889     discharges with supporting documentation;
890          (ii) the division shall determine the hospital's discharges from the information
891     submitted under Subsection (3)(b)(i); and
892          (iii) if the hospital fails to submit discharge information, the division shall audit the
893     hospital's records and may impose a penalty equal to 5% of the calculated assessment.
894          (4) Except as provided in Subsection (5), if a hospital is owned by an organization that
895     owns more than one hospital in the state:

896          (a) the division shall calculate the assessment for each hospital separately; and
897          (b) each separate hospital shall pay the assessment imposed by this part.
898          (5) If multiple hospitals use the same Medicaid provider number:
899          (a) the department shall calculate the assessment in the aggregate for the hospitals
900     using the same Medicaid provider number; and
901          (b) the hospitals may pay the assessment in the aggregate.
902          Section 23. Section 26B-3-610 is amended to read:
903          26B-3-610. Hospital reimbursement.
904          (1) [If the qualified Medicaid expansion is implemented by contracting with a
905     Medicaid accountable care organization, the department shall, to] To the extent allowed by
906     law, the department shall in any contract with a Medicaid accountable care organization to
907     implement Medicaid expansion include [in a contract to provide benefits under the qualified
908     Medicaid expansion] a requirement that the Medicaid accountable care organization reimburse
909     hospitals in the Medicaid accountable care organization's provider network at no less than the
910     Medicaid fee-for-service rate.
911          (2) [If the qualified] Where the department implements Medicaid expansion [is
912     implemented by the department] as a fee-for-service program, the department shall reimburse
913     hospitals at no less than the Medicaid fee-for-service rate.
914          (3) Nothing in this section prohibits the department or a Medicaid accountable care
915     organization from paying a rate that exceeds the Medicaid fee-for-service rate.
916          Section 24. Section 26B-3-705 is amended to read:
917          26B-3-705. Calculation of assessment.
918          (1) (a) An annual assessment is payable on a quarterly basis for each hospital in an
919     amount calculated at a uniform assessment rate for each hospital discharge, in accordance with
920     this section.
921          (b) The uniform assessment rate shall be determined using the total number of hospital
922     discharges for assessed hospitals divided into the total non-federal portion in an amount
923     consistent with Section 26B-3-707 that is needed to support capitated rates for Medicaid
924     accountable care organizations for purposes of hospital services provided to Medicaid
925     enrollees.
926          (c) Any quarterly changes to the uniform assessment rate shall be applied uniformly to

927     all assessed hospitals.
928          (d) The annual uniform assessment rate may not generate more than:
929          (i) $1,000,000 to offset Medicaid mandatory expenditures; and
930          (ii) the non-federal share to seed amounts needed to support capitated rates for
931     Medicaid accountable care organizations as provided for in Subsection (1)(b).
932          (2) (a) For each state fiscal year, discharges shall be determined using the data from
933     each hospital's Medicare Cost Report contained in the [Centers for Medicare and Medicaid
934     Services'] CMS Healthcare Cost Report Information System file. The hospital's discharge data
935     [will be derived as follows: (i) for state fiscal year 2013, the hospital's cost report data for the
936     hospital's fiscal year ending between July 1, 2009, and June 30, 2010; (ii) for state fiscal year
937     2014, the hospital's cost report data for the hospital's fiscal year ending between July 1, 2010,
938     and June 30, 2011; (iii) for state fiscal year 2015, the hospital's cost report data for the
939     hospital's fiscal year ending between July 1, 2011, and June 30, 2012; (iv) for state fiscal year
940     2016, the hospital's cost report data for the hospital's fiscal year ending between July 1, 2012,
941     and June 30, 2013; and (v) for each subsequent state fiscal year,] is the hospital's cost report
942     data for the hospital's fiscal year that ended in the state fiscal year two years prior to the
943     assessment fiscal year.
944          (b) If a hospital's fiscal year Medicare Cost Report is not contained in the [Centers for
945     Medicare and Medicaid Services'] CMS Healthcare Cost Report Information System file:
946          (i) the hospital shall submit to the division a copy of the hospital's Medicare Cost
947     Report applicable to the assessment year; and
948          (ii) the division shall determine the hospital's discharges.
949          (c) If a hospital is not certified by the Medicare program and is not required to file a
950     Medicare Cost Report:
951          (i) the hospital shall submit to the division its applicable fiscal year discharges with
952     supporting documentation;
953          (ii) the division shall determine the hospital's discharges from the information
954     submitted under Subsection (2)(c)(i); and
955          (iii) the failure to submit discharge information shall result in an audit of the hospital's
956     records and a penalty equal to 5% of the calculated assessment.
957          (3) Except as provided in Subsection (4), if a hospital is owned by an organization that

958     owns more than one hospital in the state:
959          (a) the assessment for each hospital shall be separately calculated by the department;
960     and
961          (b) each separate hospital shall pay the assessment imposed by this part.
962          (4) Notwithstanding the requirement of Subsection (3), if multiple hospitals use the
963     same Medicaid provider number:
964          (a) the department shall calculate the assessment in the aggregate for the hospitals
965     using the same Medicaid provider number; and
966          (b) the hospitals may pay the assessment in the aggregate.
967          Section 25. Section 26B-3-707 is amended to read:
968          26B-3-707. Medicaid hospital adjustment under Medicaid accountable care
969     organization rates.
970          (1) To preserve and improve access to hospital services, the division shall incorporate
971     into the Medicaid accountable care organization rate structure calculation consistent with the
972     certified actuarial rate range:
973          (a) $154,000,000 to be allocated toward the hospital inpatient directed payments for the
974     Medicaid eligibility categories covered in Utah before January 1, 2019; and
975          (b) an amount equal to the difference between payments made to hospitals by Medicaid
976     accountable care organizations for the Medicaid eligibility categories covered in Utah, based on
977     submitted encounter data, and the maximum amount that could be paid for those services, to be
978     used for directed payments to hospitals for inpatient and outpatient services.
979          (2) (a) To preserve and improve the quality of inpatient and outpatient hospital services
980     authorized under Subsection (1)(b), the division shall amend its quality strategies required by
981     42 C.F.R. Sec. 438.340 to include quality measures selected from the CMS hospital quality
982     improvement programs.
983          (b) To better address the unique needs of rural and specialty hospitals, the division may
984     adopt different quality standards for rural and specialty hospitals.
985          (c) The division shall make rules in accordance with Title 63G, Chapter 3, Utah
986     Administrative Rulemaking Act, to adopt the selected quality measures and prescribe penalties
987     for not meeting the quality standards that are established by the division by rule.
988          (d) The division shall apply the same quality measures and penalties under this

989     Subsection (2) to new directed payments made to the University of Utah Hospital and Clinics.
990          Section 26. Section 26B-3-803 is amended to read:
991          26B-3-803. Calculation of assessment.
992          (1) The division shall calculate a uniform assessment per transport as described in this
993     section.
994          (2) The assessment due from a given ambulance service provider equals the
995     non-federal portion divided by total transports, multiplied by the number of transports for the
996     ambulance service provider.
997          (3) The division shall apply any quarterly changes to the assessment rate, calculated as
998     described in Subsection (2), uniformly to all assessed ambulance service providers.
999          (4) The assessment may not generate more than the total of:
1000          (a) an annual amount of $20,000 to offset Medicaid administration expenses; and
1001          (b) the non-federal portion.
1002          (5) (a) For each state fiscal year, the division shall calculate total transports using [data
1003     from the Emergency Medical System as follows: (i) for state fiscal year 2016, the division shall
1004     use ambulance service provider transports during the 2014 calendar year; and (ii) for a fiscal
1005     year after 2016, the division shall use] ambulance service provider transports [during] data
1006     from the Emergency Medical System for the calendar year ending 18 months before the end of
1007     the fiscal year.
1008          (b) If an ambulance service provider fails to submit transport information to the
1009     Emergency Medical System, the division may audit the ambulance service provider to
1010     determine the ambulance service provider's transports for a given fiscal year.
1011          Section 27. Section 26B-3-1004 is amended to read:
1012          26B-3-1004. Health insurance entity -- Duties related to state claims for Medicaid
1013     payment or recovery.
1014          As a condition of doing business in the state, a health insurance entity shall:
1015          (1) with respect to an individual who is eligible for, or is provided, medical assistance
1016     under the state plan, upon the request of the department, provide information to determine:
1017          (a) during what period the individual, or the spouse or dependent of the individual, may
1018     be or may have been, covered by the health insurance entity; and
1019          (b) the nature of the coverage that is or was provided by the health insurance entity

1020     described in Subsection (1)(a), including the name, address, and identifying number of the
1021     plan;
1022          (2) accept the state's right of recovery and the assignment to the state of any right of an
1023     individual to payment from a party for an item or service for which payment has been made
1024     under the state plan;
1025          (3) respond within 60 days to any inquiry by the department regarding a claim for
1026     payment for any health care item or service that is submitted no later than three years after the
1027     day on which the health care item or service is provided; [and]
1028          (4) not deny a claim submitted by the department solely on the basis of the date of
1029     submission of the claim, the type or format of the claim form, or failure to present proper
1030     documentation at the point-of-sale that is the basis for the claim, if:
1031          (a) the claim is submitted no later than three years after the day on which the item or
1032     service is furnished; and
1033          (b) any action by the department to enforce the rights of the state with respect to the
1034     claim is commenced no later than six years after the day on which the claim is submitted[.];
1035     and
1036          (5) not deny a claim submitted by the department for an item or service solely on the
1037     basis that such item or service did not receive prior authorization under the third-party payers
1038     rules.
1039          Section 28. Section 63C-18-202 is amended to read:
1040          63C-18-202. Commission established -- Members.
1041          (1) There is created the Behavioral Health Crisis Response Commission, composed of
1042     the following members:
1043          (a) the executive director of the Huntsman Mental Health Institute;
1044          (b) the governor or the governor's designee;
1045          (c) the director of the Office of Substance Use and Mental Health;
1046          (d) one representative of the Office of the Attorney General, appointed by the attorney
1047     general;
1048          (e) the executive director of the Department of Health and Human Services or the
1049     executive director's designee;
1050          (f) one member of the public, appointed by the chair of the commission and approved

1051     by the commission;
1052          (g) two individuals who are mental or behavioral health clinicians licensed to practice
1053     in the state, appointed by the chair of the commission and approved by the commission, at least
1054     one of whom is an individual who:
1055          (i) is licensed as a physician under:
1056          (A) Title 58, Chapter 67, Utah Medical Practice Act;
1057          (B) Title 58, Chapter 67b, Interstate Medical Licensure Compact; or
1058          (C) Title 58, Chapter 68, Utah Osteopathic Medical Practice Act; and
1059          (ii) is board eligible for a psychiatry specialization recognized by the American Board
1060     of Medical Specialists or the American Osteopathic Association's Bureau of Osteopathic
1061     Specialists;
1062          (h) one individual who represents a county of the first or second class, appointed by the
1063     Utah Association of Counties;
1064          (i) one individual who represents a county of the third, fourth, or fifth class, appointed
1065     by the Utah Association of Counties;
1066          (j) one individual who represents the Utah Hospital Association, appointed by the chair
1067     of the commission;
1068          (k) one individual who represents law enforcement, appointed by the chair of the
1069     commission;
1070          (l) one individual who has lived with a mental health disorder, appointed by the chair
1071     of the commission;
1072          (m) one individual who represents an integrated health care system that:
1073          (i) is not affiliated with the chair of the commission; and
1074          (ii) provides inpatient behavioral health services and emergency room services to
1075     individuals in the state;
1076          (n) one individual who represents [an] a Medicaid accountable care organization, as
1077     defined in Section 26B-3-219, with a statewide membership base;
1078          (o) one individual who represents 911 call centers and public safety answering points,
1079     appointed by the chair of the commission;
1080          (p) one individual who represents Emergency Medical Services, appointed by the chair
1081     of the commission;

1082          (q) one individual who represents the mobile wireless service provider industry,
1083     appointed by the chair of the commission;
1084          (r) one individual who represents rural telecommunications providers, appointed by the
1085     chair of the commission;
1086          (s) one individual who represents voice over internet protocol and land line providers,
1087     appointed by the chair of the commission;
1088          (t) one individual who represents the Utah League of Cities and Towns, appointed by
1089     the Utah League of Cities and Towns; and
1090          (u) three or six legislative members, the number of which shall be decided jointly by
1091     the speaker of the House of Representatives and the president of the Senate, appointed as
1092     follows:
1093          (i) if the speaker of the House of Representatives and the president of the Senate jointly
1094     decide to appoint three legislative members to the commission, the speaker shall appoint one
1095     member of the House of Representatives, the president shall appoint one member of the Senate,
1096     and the speaker and the president shall jointly appoint one legislator from the minority party; or
1097          (ii) if the speaker of the House of Representatives and the president of the Senate
1098     jointly decide to appoint six legislative members to the commission:
1099          (A) the speaker of the House of Representatives shall appoint three members of the
1100     House of Representatives, no more than two of whom may be from the same political party;
1101     and
1102          (B) the president of the Senate shall appoint three members of the Senate, no more than
1103     two of whom may be from the same political party.
1104          (2) (a) Except as provided in Subsection (2)(d), the executive director of the Huntsman
1105     Mental Health Institute is the chair of the commission.
1106          (b) The chair of the commission shall appoint a member of the commission to serve as
1107     the vice chair of the commission, with the approval of the commission.
1108          (c) The chair of the commission shall set the agenda for each commission meeting.
1109          (d) If the executive director of the Huntsman Mental Health Institute is not available to
1110     serve as the chair of the commission, the commission shall elect a chair from among the
1111     commission's members.
1112          (3) (a) A majority of the members of the commission constitutes a quorum.

1113          (b) The action of a majority of a quorum constitutes the action of the commission.
1114          (4) (a) Except as provided in Subsection (4)(b), a member may not receive
1115     compensation, benefits, per diem, or travel expenses for the member's service on the
1116     commission.
1117          (b) Compensation and expenses of a member who is a legislator are governed by
1118     Section 36-2-2 and Legislative Joint Rules, Title 5, Legislative Compensation and Expenses.
1119          (5) The Office of the Attorney General shall provide staff support to the commission.
1120          Section 29. Repealer.
1121          This bill repeals:
1122          Section 26B-3-138, Behavioral health delivery working group.
1123          Section 30. Effective date.
1124          This bill takes effect on May 1, 2024.