Representative James A. Dunnigan proposes the following substitute bill:


1     
HEALTH AMENDMENTS

2     
2024 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 updates provisions related to health assistance.
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          This bill appropriates in fiscal year 2025:
19          ▸     to Department of Health and Human Services - Integrated Health Care Services -
20     Medicaid Other Services as an ongoing appropriation:
21               •     from the General Fund, $701,500
22          ▸     to Department of Health and Human Services - Integrated Health Care Services -
23     Non-Medicaid Behavioral Health Treatment and Crisis Response as an ongoing
24     appropriation:
25               •     from the General Fund, $4,800,000

26          ▸     to Department of Health and Human Services - Integrated Health Care Services -
27     Non-Medicaid Behavioral Health Treatment and Crisis Response as a one-time
28     appropriation:
29               •     from the General Fund, One-time, $800,000
30     Other Special Clauses:
31          None
32     Utah Code Sections Affected:
33     AMENDS:
34          26B-1-316, as last amended by Laws of Utah 2023, Chapter 495 and renumbered and
35     amended by Laws of Utah 2023, Chapter 305
36          26B-1-332, as renumbered and amended by Laws of Utah 2023, Chapter 305
37          26B-3-108, as last amended by Laws of Utah 2023, Chapter 466 and renumbered and
38     amended by Laws of Utah 2023, Chapter 306
39          26B-3-110, as renumbered and amended by Laws of Utah 2023, Chapter 306
40          26B-3-111, as renumbered and amended by Laws of Utah 2023, Chapter 306
41          26B-3-112, as renumbered and amended by Laws of Utah 2023, Chapter 306
42          26B-3-126, as renumbered and amended by Laws of Utah 2023, Chapter 306
43          26B-3-136, as renumbered and amended by Laws of Utah 2023, Chapter 306
44          26B-3-201, as renumbered and amended by Laws of Utah 2023, Chapter 306
45          26B-3-203, as renumbered and amended by Laws of Utah 2023, Chapter 306
46          26B-3-205, as renumbered and amended by Laws of Utah 2023, Chapter 306
47          26B-3-217, as renumbered and amended by Laws of Utah 2023, Chapter 306
48          26B-3-224, as renumbered and amended by Laws of Utah 2023, Chapter 306
49          26B-3-226, as enacted by Laws of Utah 2023, Chapter 336
50          26B-3-401, as renumbered and amended by Laws of Utah 2023, Chapter 306
51          26B-3-403, as renumbered and amended by Laws of Utah 2023, Chapter 306
52          26B-3-503, as renumbered and amended by Laws of Utah 2023, Chapter 306
53          26B-3-504, as renumbered and amended by Laws of Utah 2023, Chapter 306
54          26B-3-511, as renumbered and amended by Laws of Utah 2023, Chapter 306
55          26B-3-512, as renumbered and amended by Laws of Utah 2023, Chapter 306
56          26B-3-605, as renumbered and amended by Laws of Utah 2023, Chapter 306

57          26B-3-607, as renumbered and amended by Laws of Utah 2023, Chapter 306
58          26B-3-610, as renumbered and amended by Laws of Utah 2023, Chapter 306
59          26B-3-705, as renumbered and amended by Laws of Utah 2023, Chapter 306
60          26B-3-707, as last amended by Laws of Utah 2023, Chapter 495 and renumbered and
61     amended by Laws of Utah 2023, Chapter 306
62          26B-3-803, as renumbered and amended by Laws of Utah 2023, Chapter 306
63          26B-3-1004, as renumbered and amended by Laws of Utah 2023, Chapter 306
64          63C-18-202, as last amended by Laws of Utah 2023, Chapters 270, 329
65     REPEALS:
66          26B-3-138, as renumbered and amended by Laws of Utah 2023, Chapter 306
67     

68     Be it enacted by the Legislature of the state of Utah:
69          Section 1. Section 26B-1-316 is amended to read:
70          26B-1-316. Hospital Provider Assessment Expendable Revenue Fund.
71          (1) There is created an expendable special revenue fund known as the "Hospital
72     Provider Assessment Expendable Revenue Fund."
73          (2) The fund shall consist of:
74          (a) the assessments collected by the department under Chapter 3, Part 7, Hospital
75     Provider Assessment;
76          (b) any interest and penalties levied with the administration of Chapter 3, Part 7,
77     Hospital Provider Assessment; and
78          (c) any other funds received as donations for the fund and appropriations from other
79     sources.
80          (3) Money in the fund shall be used:
81          (a) to support capitated rates consistent with Subsection 26B-3-705(1)(d) for
82     accountable care organizations as defined in Section 26B-3-701;
83          (b) to implement the quality strategies described in Subsection 26B-3-707(2), except
84     that the amount under this Subsection (3)(b) may not exceed $211,300 in each fiscal year; and
85          (c) to reimburse money collected by the division from a hospital, as defined in Section
86     26B-3-701, through a mistake made under Chapter 3, Part 7, Hospital Provider Assessment.
87          [(4) (a) Subject to Subsection (4)(b), for the fiscal year beginning July 1, 2019, and

88     ending July 1, 2020, any fund balance in excess of the amount necessary to pay for the costs
89     described in Subsection (3) shall be deposited into the General Fund.]
90          [(b) Subsection (4)(a) applies only to funds that were appropriated by the Legislature
91     from the General Fund to the fund and the interest and penalties deposited into the fund under
92     Subsection (2)(b).]
93          Section 2. Section 26B-1-332 is amended to read:
94          26B-1-332. Nursing Care Facilities Provider Assessment Fund -- Creation --
95     Administration -- Uses.
96          (1) There is created an expendable special revenue fund known as the "Nursing Care
97     Facilities Provider Assessment Fund" consisting of:
98          (a) [the] assessments collected by the department under Chapter 3, Part 4, Nursing
99     Care Facility Assessment;
100          (b) fines paid by nursing care facilities for excessive Medicare inpatient revenue under
101     Section 26B-2-222;
102          (c) money appropriated or otherwise made available by the Legislature;
103          (d) any interest earned on the fund; and
104          (e) penalties levied with the administration of Chapter 3, Part 4, Nursing Care Facility
105     Assessment.
106          (2) Money in the fund shall only be used by the Medicaid program:
107          (a) to the extent authorized by federal law, to obtain federal financial participation in
108     the Medicaid program;
109          (b) to provide the increased level of hospice reimbursement resulting from the nursing
110     care facilities assessment imposed under Section 26B-3-403;
111          (c) for the Medicaid program to make quality incentive payments to nursing care
112     facilities, subject to CMS approval of a Medicaid state plan amendment [to do so by the
113     Centers for Medicare and Medicaid Services within the United States Department of Health
114     and Human Services];
115          (d) to increase the rates paid before July 1, 2004, to nursing care facilities for providing
116     services pursuant to the Medicaid program; and
117          (e) for administrative expenses, if the administrative expenses for the fiscal year do not
118     exceed 3% of the money deposited into the fund during the fiscal year.

119          (3) The department may not spend the money in the fund to replace existing state
120     expenditures paid to nursing care facilities for providing services under the Medicaid program,
121     except for increased costs due to hospice reimbursement under Subsection (2)(b).
122          Section 3. Section 26B-3-108 is amended to read:
123          26B-3-108. Administration of Medicaid program by department -- Reporting to
124     the Legislature -- Disciplinary measures and sanctions -- Funds collected -- Eligibility
125     standards -- Optional dental services costs and delivery -- Internal audits -- Health
126     opportunity accounts.
127          (1) The department shall be the single state agency responsible for the administration
128     of the Medicaid program in connection with the United States Department of Health and
129     Human Services pursuant to Title XIX of the Social Security Act.
130          (2) (a) The department shall implement the Medicaid program through administrative
131     rules in conformity with this chapter, Title 63G, Chapter 3, Utah Administrative Rulemaking
132     Act, the requirements of Title XIX, and applicable federal regulations.
133          (b) The rules adopted under Subsection (2)(a) shall include, in addition to other rules
134     necessary to implement the program:
135          (i) the standards used by the department for determining eligibility for Medicaid
136     services;
137          (ii) the services and benefits to be covered by the Medicaid program;
138          (iii) reimbursement methodologies for providers under the Medicaid program; and
139          (iv) a requirement that:
140          (A) a person receiving Medicaid services shall participate in the electronic exchange of
141     clinical health records established in accordance with Section 26B-8-411 unless the individual
142     opts out of participation;
143          (B) prior to enrollment in the electronic exchange of clinical health records the enrollee
144     shall receive notice of enrollment in the electronic exchange of clinical health records and the
145     right to opt out of participation at any time; and
146          (C) [beginning July 1, 2012, when] when the program sends enrollment or renewal
147     information to the enrollee and when the enrollee logs onto the program's website, the enrollee
148     shall receive notice of the right to opt out of the electronic exchange of clinical health records.
149          (3) (a) The department shall, in accordance with Subsection (3)(b), report to the Social

150     Services Appropriations Subcommittee when the department:
151          (i) implements a change in the Medicaid State Plan;
152          (ii) initiates a new Medicaid waiver;
153          (iii) initiates an amendment to an existing Medicaid waiver;
154          (iv) applies for an extension of an application for a waiver or an existing Medicaid
155     waiver;
156          (v) applies for or receives approval for a change in any capitation rate within the
157     Medicaid program; or
158          (vi) initiates a rate change that requires public notice under state or federal law.
159          (b) The report required by Subsection (3)(a) shall:
160          (i) be submitted to the Social Services Appropriations Subcommittee prior to the
161     department implementing the proposed change; and
162          (ii) include:
163          (A) a description of the department's current practice or policy that the department is
164     proposing to change;
165          (B) an explanation of why the department is proposing the change;
166          (C) the proposed change in services or reimbursement, including a description of the
167     effect of the change;
168          (D) the effect of an increase or decrease in services or benefits on individuals and
169     families;
170          (E) the degree to which any proposed cut may result in cost-shifting to more expensive
171     services in health or human service programs; and
172          (F) the fiscal impact of the proposed change, including:
173          (I) the effect of the proposed change on current or future appropriations from the
174     Legislature to the department;
175          (II) the effect the proposed change may have on federal matching dollars received by
176     the state Medicaid program;
177          (III) any cost shifting or cost savings within the department's budget that may result
178     from the proposed change; and
179          (IV) identification of the funds that will be used for the proposed change, including any
180     transfer of funds within the department's budget.

181          (4) Any rules adopted by the department under Subsection (2) are subject to review and
182     reauthorization by the Legislature in accordance with Section 63G-3-502.
183          (5) The department may, in its discretion, contract with other qualified agencies for
184     services in connection with the administration of the Medicaid program, including:
185          (a) the determination of the eligibility of individuals for the program;
186          (b) recovery of overpayments; and
187          (c) consistent with Section 26B-3-1113, and to the extent permitted by law and quality
188     control services, enforcement of fraud and abuse laws.
189          (6) The department shall provide, by rule, disciplinary measures and sanctions for
190     Medicaid providers who fail to comply with the rules and procedures of the program, provided
191     that sanctions imposed administratively may not extend beyond:
192          (a) termination from the program;
193          (b) recovery of claim reimbursements incorrectly paid; and
194          (c) those specified in Section 1919 of Title XIX of the federal Social Security Act.
195          (7) (a) Funds collected as a result of a sanction imposed under Section 1919 of Title
196     XIX of the federal Social Security Act shall be deposited [in] into the General Fund as
197     dedicated credits to be used by the division in accordance with the requirements of Section
198     1919 of Title XIX of the federal Social Security Act.
199          (b) In accordance with Section 63J-1-602.2, sanctions collected under this Subsection
200     (7) are nonlapsing.
201          (8) (a) In determining whether an applicant or recipient is eligible for a service or
202     benefit under this part or Part 9, Utah Children's Health Insurance Program, the department
203     shall, if Subsection (8)(b) is satisfied, exclude from consideration one passenger vehicle
204     designated by the applicant or recipient.
205          (b) Before Subsection (8)(a) may be applied:
206          (i) the federal government shall:
207          (A) determine that Subsection (8)(a) may be implemented within the state's existing
208     public assistance-related waivers as of January 1, 1999;
209          (B) extend a waiver to the state permitting the implementation of Subsection (8)(a); or
210          (C) determine that the state's waivers that permit dual eligibility determinations for
211     cash assistance and Medicaid are no longer valid; and

212          (ii) the department shall determine that Subsection (8)(a) can be implemented within
213     existing funding.
214          (9) (a) As used in this Subsection (9):
215          (i) "aged, blind, or has a disability" means an aged, blind, or disabled individual, as
216     defined in 42 U.S.C. Sec. 1382c(a)(1); and
217          (ii) "spend down" means an amount of income in excess of the allowable income
218     standard that shall be paid in cash to the department or incurred through the medical services
219     not paid by Medicaid.
220          (b) In determining whether an applicant or recipient who is aged, blind, or has a
221     disability is eligible for a service or benefit under this chapter, the department shall use 100%
222     of the federal poverty level as:
223          (i) the allowable income standard for eligibility for services or benefits; and
224          (ii) the allowable income standard for eligibility as a result of spend down.
225          (10) The department shall conduct internal audits of the Medicaid program.
226          [(11) (a) The department may apply for and, if approved, implement a demonstration
227     program for health opportunity accounts, as provided for in 42 U.S.C. Sec. 1396u-8.]
228          [(b) A health opportunity account established under Subsection (11)(a) shall be an
229     alternative to the existing benefits received by an individual eligible to receive Medicaid under
230     this chapter.]
231          [(c) Subsection (11)(a) is not intended to expand the coverage of the Medicaid
232     program.]
233          [(12)] (11) (a) (i) The department shall apply for, and if approved, implement an
234     amendment to the state plan under this Subsection [(12)] (11) for benefits for:
235          (A) medically needy pregnant women;
236          (B) medically needy children; and
237          (C) medically needy parents and caretaker relatives.
238          (ii) The department may implement the eligibility standards of Subsection [(12)(b)]
239     (11)(b) for eligibility determinations made on or after the date of the approval of the
240     amendment to the state plan.
241          (b) In determining whether an applicant is eligible for benefits described in Subsection
242     [(12)(a)(i)] (11)(a)(i), the department shall:

243          (i) disregard resources held in an account in [the] a savings plan created under Title
244     53B, Chapter 8a, Utah Educational Savings Plan, if the beneficiary of the account is:
245          (A) under the age of 26; and
246          (B) living with the account owner, as that term is defined in Section 53B-8a-102, or
247     temporarily absent from the residence of the account owner; and
248          (ii) include [the] withdrawals from an account in the Utah Educational Savings Plan as
249     resources for a benefit determination, if the [withdrawal was] withdrawals were not used for
250     qualified higher education costs as that term is defined in Section 53B-8a-102.5.
251          [(13)] (12) (a) The department may not deny or terminate eligibility for Medicaid
252     solely because an individual is:
253          (i) incarcerated; and
254          (ii) not an inmate as defined in Section 64-13-1.
255          (b) Subsection [(13)(a)] (12)(a) does not require the Medicaid program to provide
256     coverage for any services for an individual while the individual is incarcerated.
257          [(14)] (13) The department is a party to, and may intervene at any time in, any judicial
258     or administrative action:
259          (a) to which the Department of Workforce Services is a party; and
260          (b) that involves medical assistance under this chapter.
261          [(15)] (14) (a) The department may not deny or terminate eligibility for Medicaid
262     solely because a birth mother, as that term is defined in Section 78B-6-103, considers an
263     adoptive placement for the child or proceeds with an adoptive placement of the child.
264          (b) A health care provider, as that term is defined in Section 26B-3-126, may not
265     decline payment by Medicaid for covered health and medical services provided to a birth
266     mother, as that term is defined in Section 78B-6-103, who is enrolled in Utah's Medicaid
267     program and who considers an adoptive placement for the child or proceeds with an adoptive
268     placement of the child.
269          Section 4. Section 26B-3-110 is amended to read:
270          26B-3-110. Copayments by recipients -- Employer sponsored plans.
271          (1) The department shall selectively provide for enrollment fees, premiums,
272     deductions, cost sharing or other similar charges to be paid by recipients, their spouses, and
273     parents, within the limitations of federal law and regulation.

274          (2) [Beginning May 1, 2006, within] Within appropriations by the Legislature and as a
275     means to increase health care coverage among the uninsured, the department shall take steps to
276     promote increased participation in employer sponsored health insurance, including:
277          (a) maximizing the health insurance premium subsidy provided under the state's 1115
278     demonstration waiver by:
279          (i) ensuring that state funds are matched by federal funds to the greatest extent
280     allowable; and
281          (ii) as the department determines appropriate, seeking federal approval to do one or
282     more of the following:
283          (A) eliminate or otherwise modify the annual enrollment fee;
284          (B) eliminate or otherwise modify the schedule used to determine the level of subsidy
285     provided to an enrollee each year;
286          (C) reduce the maximum number of participants allowable under the subsidy program;
287     or
288          (D) otherwise modify the program in a manner that promotes enrollment in employer
289     sponsored health insurance; and
290          (b) exploring the use of other options, including the development of a waiver under the
291     Medicaid Health Insurance Flexibility Demonstration Initiative or other federal authority.
292          Section 5. Section 26B-3-111 is amended to read:
293          26B-3-111. Income and resources from institutionalized spouses.
294          (1) As used in this section:
295          (a) "Community spouse" means the spouse of an institutionalized spouse.
296          (b) (i) "Community spouse monthly income allowance" means an amount by which the
297     minimum monthly maintenance needs allowance for the spouse exceeds the amount of monthly
298     income otherwise available to the community spouse, determined without regard to the
299     allowance, except as provided in Subsection (1)(b)(ii).
300          (ii) If a court has entered an order against an institutionalized spouse for monthly
301     income for the support of the community spouse, the community spouse monthly income
302     allowance for the spouse may not be less than the amount of the monthly income so ordered.
303          (c) "Community spouse resource allowance" is the amount of combined resources that
304     are protected for a community spouse living in the community, which the division shall

305     establish by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
306     Rulemaking Act, based on the amounts established by the United States Department of Health
307     and Human Services.
308          (d) "Excess shelter allowance" for a community spouse means the amount by which the
309     sum of the spouse's expense for rent or mortgage payment, taxes, and insurance, and in the case
310     of condominium or cooperative, required maintenance charge, for the community spouse's
311     principal residence and the spouse's actual expenses for electricity, natural gas, and water
312     utilities or, at the discretion of the department, the federal standard utility allowance under
313     SNAP as defined in Section 35A-1-102, exceeds 30% of the amount described in Subsection
314     (9).
315          (e) "Family member" means a minor dependent child, dependent parents, or dependent
316     sibling of the institutionalized spouse or community spouse who are residing with the
317     community spouse.
318          (f) (i) "Institutionalized spouse" means a person who is residing in a nursing facility
319     and is married to a spouse who is not in a nursing facility.
320          (ii) An "institutionalized spouse" does not include a person who is not likely to reside
321     in a nursing facility for at least 30 consecutive days.
322          (g) "Nursing care facility" means the same as that term is defined in Section
323     26B-2-201.
324          (2) The division shall comply with this section when determining eligibility for
325     medical assistance for an institutionalized spouse.
326          (3) [For services furnished during a calendar year beginning on or after January 1,
327     1999, the] The community spouse resource allowance shall be increased by the division by an
328     amount as determined annually by CMS.
329          (4) The division shall compute, as of the beginning of the first continuous period of
330     institutionalization of the institutionalized spouse:
331          (a) the total value of the resources to the extent either the institutionalized spouse or
332     the community spouse has an ownership interest; and
333          (b) a spousal share, which is 1/2 of the resources described in Subsection (4)(a).
334          (5) At the request of an institutionalized spouse or a community spouse, at the
335     beginning of the first continuous period of institutionalization of the institutionalized spouse

336     and upon the receipt of relevant documentation of resources, the division shall promptly assess
337     and document the total value described in Subsection (4)(a) and shall provide a copy of that
338     assessment and documentation to each spouse and shall retain a copy of the assessment. When
339     the division provides a copy of the assessment, it shall include a notice stating that the spouse
340     may request a hearing under Subsection (11).
341          (6) When determining eligibility for medical assistance under this chapter:
342          (a) Except as provided in Subsection (6)(b), all resources held by either the
343     institutionalized spouse, community spouse, or both, are considered to be available to the
344     institutionalized spouse.
345          (b) Resources are considered to be available to the institutionalized spouse only to the
346     extent that the amount of those resources exceeds the community spouse resource allowance at
347     the time of application for medical assistance under this chapter.
348          (7) (a) The division may not find an institutionalized spouse to be ineligible for
349     medical assistance by reason of resources determined under Subsection (5) to be available for
350     the cost of care when:
351          (i) the institutionalized spouse has assigned to the state any rights to support from the
352     community spouse;
353          (ii) except as provided in Subsection (7)(b), the institutionalized spouse lacks the
354     ability to execute an assignment due to physical or mental impairment; or
355          (iii) the division determines that denial of medical assistance would cause an undue
356     burden.
357          (b) Subsection (7)(a)(ii) does not prevent the division from seeking a court order for an
358     assignment of support.
359          (8) During the continuous period in which an institutionalized spouse is in an
360     institution and after the month in which an institutionalized spouse is eligible for medical
361     assistance, the resources of the community spouse may not be considered to be available to the
362     institutionalized spouse.
363          (9) When an institutionalized spouse is determined to be eligible for medical
364     assistance, in determining the amount of the spouse's income that is to be applied monthly for
365     the cost of care in the nursing care facility, the division shall deduct from the spouse's monthly
366     income the following amounts in the following order:

367          (a) a personal needs allowance, the amount of which is determined by the division;
368          (b) a community spouse monthly income allowance, but only to the extent that the
369     income of the institutionalized spouse is made available to, or for the benefit of, the community
370     spouse;
371          (c) a family allowance for each family member, equal to at least 1/3 of the amount that
372     the amount described in Subsection (10)(a) exceeds the amount of the family member's
373     monthly income; and
374          (d) amounts for incurred expenses for the medical or remedial care for the
375     institutionalized spouse.
376          (10) The division shall establish a minimum monthly maintenance needs allowance for
377     each community spouse that includes:
378          (a) an amount established by the division by rule made in accordance with Title 63G,
379     Chapter 3, Utah Administrative Rulemaking Act, based on the amounts established by the
380     United States Department of Health and Human Services; and
381          (b) an excess shelter allowance.
382          (11) (a) An institutionalized spouse or a community spouse may request a hearing with
383     respect to the determinations described in Subsections (11)(e)(i) through (v) if an application
384     for medical assistance has been made on behalf of the institutionalized spouse.
385          (b) A hearing under this subsection regarding the community spouse resource
386     allowance shall be held by the division within 90 days from the date of the request for the
387     hearing.
388          (c) If either spouse establishes that the community spouse needs income, above the
389     level otherwise provided by the minimum monthly maintenance needs allowance, due to
390     exceptional circumstances resulting in significant financial duress, there shall be substituted,
391     for the minimum monthly maintenance needs allowance provided under Subsection (10), an
392     amount adequate to provide additional income as is necessary.
393          (d) If either spouse establishes that the community spouse resource allowance, in
394     relation to the amount of income generated by the allowance is inadequate to raise the
395     community spouse's income to the minimum monthly maintenance needs allowance, there shall
396     be substituted, for the community spouse resource allowance, an amount adequate to provide a
397     minimum monthly maintenance needs allowance.

398          (e) A hearing may be held under this subsection if either the institutionalized spouse or
399     community spouse is dissatisfied with a determination of:
400          (i) the community spouse monthly income allowance;
401          (ii) the amount of monthly income otherwise available to the community spouse;
402          (iii) the computation of the spousal share of resources under Subsection (4);
403          (iv) the attribution of resources under Subsection (6); or
404          (v) the determination of the community spouse resource allocation.
405          (12) (a) An institutionalized spouse may transfer an amount equal to the community
406     spouse resource allowance, but only to the extent the resources of the institutionalized spouse
407     are transferred to or for the sole benefit of the community spouse.
408          (b) The transfer under Subsection (12)(a) shall be made as soon as practicable after the
409     date of the initial determination of eligibility, taking into account the time necessary to obtain a
410     court order under Subsection (12)(c).
411          (c) Part 10, Medical Benefits Recovery, does not apply if a court has entered an order
412     against an institutionalized spouse for the support of the community spouse.
413          Section 6. Section 26B-3-112 is amended to read:
414          26B-3-112. Maximizing use of premium assistance programs -- Utah's Premium
415     Partnership for Health Insurance.
416          (1) (a) The department shall seek to maximize the use of Medicaid and Children's
417     Health Insurance Program funds for assistance in the purchase of private health insurance
418     coverage for Medicaid-eligible and non-Medicaid-eligible individuals.
419          (b) The department's efforts to expand the use of premium assistance shall:
420          (i) include, as necessary, seeking federal approval under all Medicaid and Children's
421     Health Insurance Program premium assistance provisions of federal law, including provisions
422     of PPACA;
423          (ii) give priority to, but not be limited to, expanding the state's Utah Premium
424     Partnership for Health Insurance [Program] program, including as required under Subsection
425     (2); and
426          (iii) encourage the enrollment of all individuals within a household in the same plan,
427     where possible, including enrollment in a plan that allows individuals within the household
428     transitioning out of Medicaid to retain the same network and benefits they had while enrolled

429     in Medicaid.
430          (2) The department shall seek federal approval of an amendment to the state's Utah
431     Premium Partnership for Health Insurance program to adjust the eligibility determination for
432     single adults and parents who have an offer of employer sponsored insurance. The amendment
433     shall:
434          (a) be within existing appropriations for the Utah Premium Partnership for Health
435     Insurance program; and
436          (b) provide that adults who are up to 200% of the federal poverty level are eligible for
437     premium subsidies in the Utah Premium Partnership for Health Insurance program.
438          (3) For the fiscal year 2020-21, the department shall seek authority to increase the
439     maximum premium subsidy per month for adults under the Utah Premium Partnership for
440     Health Insurance program to $300.
441          (4) [Beginning with the fiscal year 2021-22, and in each subsequent] In each fiscal
442     year, the department may increase premium subsidies for single adults and parents who have an
443     offer of employer-sponsored insurance to keep pace with the increase in insurance premium
444     costs, subject to appropriation of additional funding.
445          Section 7. Section 26B-3-126 is amended to read:
446          26B-3-126. Patient notice of health care provider privacy practices.
447          (1) (a) For purposes of this section:
448          (i) "Health care provider" means a health care provider as defined in Section
449     78B-3-403 who:
450          (A) receives payment for medical services from the Medicaid program established in
451     this chapter, or the Children's Health Insurance Program established in Section 26B-3-902; and
452          (B) submits a patient's personally identifiable information to the Medicaid eligibility
453     database or the Children's Health Insurance Program eligibility database.
454          (ii) "HIPAA" means 45 C.F.R. Parts 160, 162, and 164, Health Insurance Portability
455     and Accountability Act of 1996, as amended.
456          (b) [Beginning July 1, 2013, this] This section applies to the Medicaid program, the
457     Children's Health Insurance Program created in Section 26B-3-902, and a health care provider.
458          (2) A health care provider shall, as part of the notice of privacy practices required by
459     HIPAA, provide notice to the patient or the patient's personal representative that the health care

460     provider either has, or may submit, personally identifiable information about the patient to the
461     Medicaid eligibility database and the Children's Health Insurance Program eligibility database.
462          (3) The Medicaid program and the Children's Health Insurance Program may not give a
463     health care provider access to the Medicaid eligibility database or the Children's Health
464     Insurance Program eligibility database unless the health care provider's notice of privacy
465     practices complies with Subsection (2).
466          (4) The department may adopt an administrative rule to establish uniform language for
467     the state requirement regarding notice of privacy practices to patients required under
468     Subsection (2).
469          Section 8. Section 26B-3-136 is amended to read:
470          26B-3-136. Children's Health Care Coverage Program.
471          (1) As used in this section:
472          (a) "CHIP" means the Children's Health Insurance Program created in Section
473     26B-3-902.
474          (b) "Program" means the Children's Health Care Coverage Program created in
475     Subsection (2).
476          (2) (a) There is created the Children's Health Care Coverage Program within the
477     department.
478          (b) The purpose of the program is to:
479          (i) promote health insurance coverage for children in accordance with Section
480     26B-3-124;
481          (ii) conduct research regarding families who are eligible for Medicaid and CHIP to
482     determine awareness and understanding of available coverage;
483          (iii) analyze trends in disenrollment and identify reasons that families may not be
484     renewing enrollment, including any barriers in the process of renewing enrollment;
485          (iv) administer surveys to recently enrolled CHIP members, as defined in Section
486     26B-3-901, and children's Medicaid enrollees to identify:
487          (A) how the enrollees learned about coverage; and
488          (B) any barriers during the application process;
489          (v) develop promotional material regarding CHIP and children's Medicaid eligibility,
490     including outreach through social media, video production, and other media platforms;

491          (vi) identify ways that the eligibility website for enrollment in CHIP and children's
492     Medicaid can be redesigned to increase accessibility and enhance the user experience;
493          (vii) identify outreach opportunities, including partnerships with community
494     organizations including:
495          (A) schools;
496          (B) small businesses;
497          (C) unemployment centers;
498          (D) parent-teacher associations; and
499          (E) youth athlete clubs and associations; and
500          (viii) develop messaging to increase awareness of coverage options that are available
501     through the department.
502          (3) (a) The department may not delegate implementation of the program to a private
503     entity.
504          (b) Notwithstanding Subsection (3)(a), the department may contract with a media
505     agency to conduct the activities described in Subsection (2)(b)(iv) and (vii).
506          Section 9. Section 26B-3-201 is amended to read:
507          26B-3-201. Independent foster care adolescents.
508          (1) As used in this section, an "independent foster care adolescent" includes any
509     individual who reached 18 years old while in the custody of the department if the department
510     was the primary case manager, or a federally recognized Indian tribe.
511          (2) An independent foster care adolescent is eligible, when funds are available, for
512     Medicaid coverage until the individual reaches 21 years old.
513          [(3) Before July 1, 2006, the division shall submit a state Medicaid Plan amendment to
514     CMS to provide medical coverage for independent foster care adolescents effective fiscal year
515     2006-07.]
516          Section 10. Section 26B-3-203 is amended to read:
517          26B-3-203. Base budget appropriations for Medicaid accountable care
518     organizations and behavioral health plans -- Forecast of behavioral health services cost.
519          (1) As used in this section:
520          (a) "ACO" means [an] a Medicaid accountable care organization that contracts with the
521     state's Medicaid program for:

522          (i) physical health services; or
523          (ii) integrated physical and behavioral health services.
524          (b) "Base budget" means the same as that term is defined in legislative rule.
525          (c) "Behavioral health plan" means a managed care or [fee for service] fee-for-service
526     delivery system that contracts with or is operated by the department to provide behavioral
527     health services to Medicaid eligible individuals.
528          (d) "Behavioral health services" means mental health or substance use treatment or
529     services.
530          (e) "General Fund growth factor" means the amount determined by dividing the next
531     fiscal year ongoing General Fund revenue estimate by current fiscal year ongoing
532     appropriations from the General Fund.
533          (f) "Next fiscal year ongoing General Fund revenue estimate" means the next fiscal
534     year ongoing General Fund revenue estimate identified by the Executive Appropriations
535     Committee, in accordance with legislative rule, for use by the Office of the Legislative Fiscal
536     Analyst in preparing budget recommendations.
537          (g) "Member" means an enrollee.
538          [(g)] (h) "PMPM" means per-member-per-month funding.
539          (2) If the General Fund growth factor is less than 100%, the next fiscal year base
540     budget shall, subject to Subsection (5), include an appropriation to the department in an
541     amount necessary to ensure that the next fiscal year PMPM for ACOs and behavioral health
542     plans equals the current fiscal year PMPM for the ACOs and behavioral health plans multiplied
543     by 100%.
544          (3) If the General Fund growth factor is greater than or equal to 100%, but less than
545     102%, the next fiscal year base budget shall, subject to Subsection (5), include an appropriation
546     to the department in an amount necessary to ensure that the next fiscal year PMPM for ACOs
547     and behavioral health plans equals the current fiscal year PMPM for the ACOs and behavioral
548     health plans multiplied by the General Fund growth factor.
549          (4) If the General Fund growth factor is greater than or equal to 102%, the next fiscal
550     year base budget shall, subject to Subsection (5), include an appropriation to the department in
551     an amount necessary to ensure that the next fiscal year PMPM for ACOs and behavioral health
552     plans is greater than or equal to the current fiscal year PMPM for the ACOs and behavioral

553     health plans multiplied by 102% and less than or equal to the current fiscal year PMPM for the
554     ACOs and behavioral health plans multiplied by the General Fund growth factor.
555          (5) The appropriations provided to the department for behavioral health plans under
556     this section shall be reduced by the amount contributed by counties in the current fiscal year for
557     behavioral health plans in accordance with Subsections 17-43-201(5)(k) and
558     17-43-301(6)(a)(x).
559          (6) In order for the department to estimate the impact of Subsections (2) through (4)
560     before identification of the next fiscal year ongoing General Fund revenue estimate, the
561     Governor's Office of Planning and Budget shall, in cooperation with the Office of the
562     Legislative Fiscal Analyst, develop an estimate of ongoing General Fund revenue for the next
563     fiscal year and provide the estimate to the department no later than November 1 of each year.
564          (7) The Office of the Legislative Fiscal Analyst shall include an estimate of the cost of
565     behavioral health services in any state Medicaid funding or savings forecast that is completed
566     in coordination with the department and the Governor's Office of Planning and Budget.
567          Section 11. Section 26B-3-205 is amended to read:
568          26B-3-205. Long-term care insurance partnership.
569          (1) As used in this section:
570          (a) "Qualified long-term care insurance contract" is as defined in 26 U.S.C. Sec.
571     7702B(b).
572          (b) "Qualified long-term care insurance partnership" is as defined in 42 U.S.C. Sec.
573     1396p(b)(1)(C)(iii).
574          (c) "State plan amendment" means an amendment to the state Medicaid plan drafted by
575     the department in compliance with this section.
576          (2) [No later than July 1, 2014, the] The department shall seek federal approval of a
577     state plan amendment that creates a qualified long-term care insurance partnership.
578          (3) The department may make rules to comply with federal laws and regulations
579     relating to qualified long-term care insurance partnerships and qualified long-term care
580     insurance contracts.
581          Section 12. Section 26B-3-217 is amended to read:
582          26B-3-217. Medicaid waiver for coverage of qualified inmates leaving prison or
583     jail.

584          (1) As used in this section:
585          (a) "Correctional facility" means:
586          (i) a county jail;
587          [(ii) the Department of Corrections, created in Section 64-13-2; or]
588          [(iii)] (ii) a prison, penitentiary, or other institution operated by or under contract with
589     the Department of Corrections for the confinement of an offender, as defined in Section
590     64-13-1[.]; or
591          (iii) a facility for secure confinement of minors operated by the Division of Juvenile
592     Justice and Youth Services.
593          (b) "Limited Medicaid benefit" means:
594          (i) reentry case management services;
595          (ii) physical and behavioral health clinical services;
596          (iii) medications and medication administration;
597          (iv) medication-assisted treatment, including all United States Food and Drug
598     Administration approved medications, including coverage for counseling; and
599          (v) other services as determined by rule made in accordance with Title 63G, Chapter 3,
600     Utah Administrative Rulemaking Act.
601          (c) "Qualified inmate" means an individual who:
602          (i) is incarcerated in a correctional facility; and
603          (ii) is ineligible for Medicaid as a result of incarceration but would otherwise qualify
604     for Medicaid.
605          [(ii) has:]
606          [(A) a chronic physical or behavioral health condition;]
607          [(B) a mental illness, as defined in Section 26B-5-301; or]
608          [(C) an opioid use disorder.]
609          (2) [Before July 1, 2020] Subject to appropriation, before July 1, 2024, the division
610     shall apply for a Medicaid waiver [or a state plan amendment], or amend an existing Medicaid
611     waiver application, with CMS to offer a program to provide a limited Medicaid [coverage]
612     benefit to a qualified inmate for up to [30] 90 days immediately before the day on which the
613     qualified inmate is released from a correctional facility.
614          (3) (a) Savings to state and local funds that result from the use of federal funds

615     provided under this section shall be used in accordance with a reinvestment plan as mandated
616     by CMS.
617          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
618     department shall make rules for a participating county to establish a reinvestment plan
619     described in Subsection (3)(a).
620          [(3)] (4) If the waiver [or state plan amendment] or amended waiver described in
621     Subsection (2) is approved, the department shall report to the Health and Human Services
622     Interim Committee each year before November 30 while the waiver [or state plan amendment]
623     is in effect regarding:
624          (a) the number of qualified inmates served under the program;
625          (b) the cost of the program; and
626          (c) the effectiveness of the program, including:
627          (i) any reduction in the number of emergency room visits or hospitalizations by
628     inmates after release from a correctional facility;
629          (ii) any reduction in the number of inmates undergoing inpatient treatment after release
630     from a correctional facility;
631          (iii) any reduction in overdose rates and deaths of inmates after release from a
632     correctional facility; and
633          (iv) any other costs or benefits as a result of the program.
634          (5) Before July 1, 2024, the department shall apply for a Medicaid waiver with CMS to
635     offer housing services for an individual that was a qualified inmate within the previous 12
636     months.
637          (6) The department may elect to not apply for a Medicaid waiver or limit services
638     described in this section based on appropriation.
639          [(4) If the waiver or state plan amendment described in Subsection (2) is approved, a
640     county that is responsible for the cost of a qualified inmate's medical care shall provide the
641     required matching funds to the state for:]
642          [(a) any costs to enroll the qualified inmate for the Medicaid coverage described in
643     Subsection (2);]
644          [(b) any administrative fees for the Medicaid coverage described in Subsection (2);
645     and]

646          [(c) the Medicaid coverage that is provided to the qualified inmate under Subsection
647     (2).]
648          Section 13. Section 26B-3-224 is amended to read:
649          26B-3-224. Medicaid waiver for increased integrated health care reimbursement.
650          (1) As used in this section:
651          (a) "Integrated health care setting" means a health care or behavioral health care setting
652     that provides integrated physical and behavioral health care services.
653          (b) "Local mental health authority" means a local mental health authority described in
654     Section 17-43-301.
655          (2) The department shall develop a proposal to allow the state Medicaid program to
656     reimburse a local mental health authority for covered physical health care services provided in
657     an integrated health care setting to Medicaid eligible individuals.
658          (3) [Before December 31, 2022, the] The department shall apply for a Medicaid waiver
659     or a state plan amendment with CMS to implement the proposal described in Subsection (2).
660          (4) If the waiver or state plan amendment described in Subsection (3) is approved, the
661     department shall:
662          (a) implement the proposal described in Subsection (2); and
663          (b) while the waiver or state plan amendment is in effect, submit a report to the Health
664     and Human Services Interim Committee each year before November 30 detailing:
665          (i) the number of patients served under the waiver or state plan amendment;
666          (ii) the cost of the waiver or state plan amendment; and
667          (iii) any benefits of the waiver or state plan amendment.
668          Section 14. Section 26B-3-226 is amended to read:
669          26B-3-226. Medicaid waiver for rural healthcare for chronic conditions.
670          (1) As used in this section:
671          (a) "Qualified condition" means:
672          (i) diabetes;
673          (ii) high blood pressure;
674          (iii) congestive heart failure;
675          (iv) asthma;
676          (v) obesity;

677          (vi) chronic obstructive pulmonary disease; or
678          (vii) chronic kidney disease.
679          (b) "Qualified enrollee" means an individual who:
680          (i) is enrolled in the Medicaid program;
681          (ii) has been diagnosed as having a qualified condition; and
682          (iii) is not enrolled in an accountable care organization.
683          (2) Before January 1, 2024, the department shall apply for a Medicaid waiver with [the
684     Centers for Medicare and Medicaid Services] CMS to implement the coverage described in
685     Subsection (3) for a three-year pilot program.
686          (3) If the waiver described in Subsection (2) is approved, the Medicaid program shall
687     contract with a single entity to provide coordinated care for the following services to each
688     qualified enrollee:
689          (a) a telemedicine platform for the qualified enrollee to use;
690          (b) an in-home initial visit to the qualified enrollee;
691          (c) daily remote monitoring of the qualified enrollee's qualified condition;
692          (d) all services in the qualified enrollee's language of choice;
693          (e) individual peer monitoring and coaching for the qualified enrollee;
694          (f) available access for the qualified enrollee to video-enabled consults and
695     voice-enabled consults 24 hours a day, seven days a week;
696          (g) in-home biometric monitoring devices to monitor the qualified enrollee's qualified
697     condition; and
698          (h) at-home medication delivery to the qualified enrollee.
699          (4) The Medicaid program may not provide the coverage described in Subsection (3)
700     until the waiver is approved.
701          (5) Each year the waiver is active, the department shall submit a report to the Health
702     and Human Services Interim Committee before November 30 detailing:
703          (a) the number of patients served under the waiver;
704          (b) the cost of the waiver; and
705          (c) any benefits of the waiver, including an estimate of:
706          (i) the reductions in emergency room visits or hospitalizations;
707          (ii) the reductions in 30-day hospital readmissions for the same diagnosis;

708          (iii) the reductions in complications related to qualified conditions; and
709          (iv) any improvements in health outcomes from baseline assessments.
710          Section 15. Section 26B-3-401 is amended to read:
711          26B-3-401. Definitions.
712          As used in this part:
713          (1) (a) "Nursing care facility" means:
714          (i) a nursing care facility as defined in Section 26B-2-201;
715          (ii) [beginning January 1, 2006, a] a designated swing bed in:
716          (A) a general acute hospital as defined in Section 26B-2-201; and
717          (B) a critical access hospital which meets the criteria of 42 U.S.C. Sec. 1395i-4(c)(2)
718     (1998); and
719          (iii) an intermediate care facility for people with an intellectual disability that is
720     licensed under Section 26B-2-212.
721          (b) "Nursing care facility" does not include:
722          (i) the Utah State Developmental Center;
723          (ii) the Utah State Hospital;
724          (iii) a general acute hospital, specialty hospital, or small health care facility as those
725     terms are defined in Section 26B-2-201; or
726          (iv) a Utah State Veterans Home.
727          (2) "Patient day" means each calendar day in which an individual patient is admitted to
728     the nursing care facility during a calendar month, even if on a temporary leave of absence from
729     the facility.
730          Section 16. Section 26B-3-403 is amended to read:
731          26B-3-403. Collection, remittance, and payment of nursing care facilities
732     assessment.
733          (1) [(a) Beginning July 1, 2004, an] An assessment is imposed upon each nursing care
734     facility in the amount designated in Subsection (1)(c).
735          [(b)] (a) (i) The department shall establish by rule, a uniform rate per non-Medicare
736     patient day that may not exceed 6% of the total gross revenue for services provided to patients
737     of all nursing care facilities licensed in this state.
738          (ii) For purposes of Subsection (1)(b)(i), total revenue does not include charitable

739     contribution received by a nursing care facility.
740          [(c)] (b) The department shall calculate the assessment imposed under Subsection
741     (1)(a) by multiplying the total number of patient days of care provided to non-Medicare
742     patients by the nursing care facility, as provided to the department pursuant to Subsection
743     (3)(a), by the uniform rate established by the department pursuant to Subsection (1)(b).
744          (2) (a) The assessment imposed by this part is due and payable on a monthly basis on
745     or before the last day of the month next succeeding each monthly period.
746          (b) The collecting agent for this assessment shall be the department which is vested
747     with the administration and enforcement of this part, including the right to audit records of a
748     nursing care facility related to patient days of care for the facility.
749          (c) The department shall forward proceeds from the assessment imposed by this part to
750     the state treasurer for deposit in the expendable special revenue fund as specified in Section
751     26B-1-332.
752          (3) Each nursing care facility shall, on or before the end of the month next succeeding
753     each calendar monthly period, file with the department:
754          (a) a report which includes:
755          (i) the total number of patient days of care the facility provided to non-Medicare
756     patients during the preceding month;
757          (ii) the total gross revenue the facility earned as compensation for services provided to
758     patients during the preceding month; and
759          (iii) any other information required by the department; and
760          (b) a return for the monthly period, and shall remit with the return the assessment
761     required by this part to be paid for the period covered by the return.
762          (4) Each return shall contain information and be in the form the department prescribes
763     by rule.
764          (5) The assessment as computed in the return is an allowable cost for Medicaid
765     reimbursement purposes.
766          (6) The department may by rule, extend the time for making returns and paying the
767     assessment.
768          (7) Each nursing care facility that fails to pay any assessment required to be paid to the
769     state, within the time required by this part, or that fails to file a return as required by this part,

770     shall pay, in addition to the assessment, penalties and interest as provided in Section
771     26B-3-404.
772          Section 17. Section 26B-3-503 is amended to read:
773          26B-3-503. Assessment.
774          (1) An assessment is imposed on each private hospital:
775          [(a) beginning upon the later of CMS approval of:]
776          [(i) the health coverage improvement program waiver under Section 26B-3-207; and]
777          [(ii) the assessment under this part;]
778          [(b)] (a) in the amount designated in Sections 26B-3-506 and 26B-3-507; and
779          [(c)] (b) in accordance with Section 26B-3-504.
780          (2) Subject to Section 26B-3-505, the assessment imposed by this part is due and
781     payable on a quarterly basis, after payment of the outpatient upper payment limit supplemental
782     payments under Section 26B-3-511 have been paid.
783          [(3) The first quarterly payment is not due until at least three months after the earlier of
784     the effective dates of the coverage provided through:]
785          [(a) the health coverage improvement program;]
786          [(b) the enhancement waiver program; or]
787          [(c) the Medicaid waiver expansion.]
788          Section 18. Section 26B-3-504 is amended to read:
789          26B-3-504. Collection of assessment -- Deposit of revenue -- Rulemaking.
790          (1) The collecting agent for the assessment imposed under Section 26B-3-503 is the
791     department.
792          (2) The department is vested with the administration and enforcement of this part, and
793     may make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
794     Act, necessary to:
795          (a) collect the assessment, intergovernmental transfers, and penalties imposed under
796     this part;
797          (b) audit records of a facility that:
798          (i) is subject to the assessment imposed by this part; and
799          (ii) does not file a Medicare cost report; and
800          (c) select a report similar to the Medicare cost report if Medicare no longer uses a

801     Medicare cost report.
802          (3) The department shall:
803          (a) administer the assessment in this part separately from the assessment in Part 7,
804     Hospital Provider Assessment; and
805          (b) deposit assessments collected under this part into the Medicaid Expansion Fund
806     [created by Section 26B-1-315].
807          Section 19. Section 26B-3-511 is amended to read:
808          26B-3-511. Outpatient upper payment limit supplemental payments.
809          (1) [Beginning on the effective date of the assessment imposed under this part, and for
810     each subsequent fiscal year, the] The department shall [implement] administer an outpatient
811     upper payment limit program for private hospitals that [shall supplement] supplements the
812     reimbursement to private hospitals in accordance with Subsection (2).
813          (2) The division shall ensure that supplemental payment to Utah private hospitals
814     under Subsection (1):
815          (a) does not exceed the positive upper payment limit gap; and
816          (b) is allocated based on the Medicaid state plan.
817          (3) The department shall use the same outpatient data to allocate the payments under
818     Subsection (2) and to calculate the upper payment limit gap.
819          (4) The supplemental payments to private hospitals under Subsection (1) are payable
820     for outpatient hospital services provided on or after the later of:
821          (a) July 1, 2016;
822          (b) the effective date of the Medicaid state plan amendment necessary to implement the
823     payments under this section; or
824          (c) the effective date of the coverage provided through the health coverage
825     improvement program waiver.
826          Section 20. Section 26B-3-512 is amended to read:
827          26B-3-512. Repeal of assessment.
828          (1) The assessment imposed by this part shall be repealed when:
829          (a) the executive director certifies that:
830          (i) action by Congress is in effect that disqualifies the assessment imposed by this part
831     from counting toward state Medicaid funds available to be used to determine the amount of

832     federal financial participation;
833          (ii) a decision, enactment, or other determination by the Legislature or by any court,
834     officer, department, or agency of the state, or of the federal government, is in effect that:
835          (A) disqualifies the assessment from counting toward state Medicaid funds available to
836     be used to determine federal financial participation for Medicaid matching funds; or
837          (B) creates for any reason a failure of the state to use the assessments for at least one of
838     the Medicaid programs described in this part; or
839          (iii) a change is in effect that reduces the aggregate hospital inpatient and outpatient
840     payment rate below the aggregate hospital inpatient and outpatient payment rate for July 1,
841     2015; or
842          (b) this part is repealed in accordance with Section 63I-1-226.
843          (2) If the assessment is repealed under Subsection (1):
844          (a) the division may not collect any assessment or intergovernmental transfer under this
845     part;
846          (b) the department shall disburse money in the [special] Medicaid Expansion Fund in
847     accordance with the requirements in Subsection 26B-1-315(4), to the extent federal matching is
848     not reduced by CMS due to the repeal of the assessment;
849          (c) any money remaining in the Medicaid Expansion Fund after the disbursement
850     described in Subsection (2)(b) that was derived from assessments imposed by this part shall be
851     refunded to the hospitals in proportion to the amount paid by each hospital for the last three
852     fiscal years; and
853          (d) any money remaining in the Medicaid Expansion Fund after the disbursements
854     described in Subsections (2)(b) and (c) shall be deposited into the General Fund by the end of
855     the fiscal year that the assessment is suspended.
856          Section 21. Section 26B-3-605 is amended to read:
857          26B-3-605. Hospital share.
858          (1) The hospital share is[:]
859          [(a) for the period from April 1, 2019, through June 30, 2020, $15,000,000; and]
860          [(b) beginning July 1, 2020,] 100% of the state's net cost of [the qualified] Medicaid
861     expansion, after deducting appropriate offsets and savings [expected] as a result of
862     implementing [the qualified] Medicaid expansion, including:

863          [(i)] (a) savings from:
864          [(A)] (i) the Medicaid program's former Primary Care Network program;
865          [(B)] (ii) the health coverage improvement program[, as defined in Section
866     26B-3-207];
867          [(C)] (iii) the state portion of inpatient prison medical coverage;
868          [(D)] (iv) behavioral health coverage; and
869          [(E)] (v) county contributions to the non-federal share of Medicaid expenditures; and
870          [(ii)] (b) any funds appropriated to the Medicaid Expansion Fund.
871          (2) (a) [Beginning July 1, 2020, the] The hospital share is capped at no more than
872     $15,000,000 annually.
873          (b) [Beginning July 1, 2020, the] The division shall prorate the cap specified in
874     Subsection (2)(a) in any year in which [the qualified] Medicaid expansion is not in effect for
875     the full fiscal year.
876          Section 22. Section 26B-3-607 is amended to read:
877          26B-3-607. Calculation of assessment.
878          (1) (a) Except as provided in Subsection (1)(b), each private hospital shall pay an
879     annual assessment due on the last day of each quarter in an amount calculated by the division at
880     a uniform assessment rate for each hospital discharge, in accordance with this section.
881          (b) A private teaching hospital with more than 425 beds and more than 60 residents
882     shall pay an assessment rate 2.5 times the uniform rate established under Subsection (1)(c).
883          (c) The division shall calculate the uniform assessment rate described in Subsection
884     (1)(a) by dividing the hospital share for assessed private hospitals, as described in Subsection
885     26B-3-606(1), by the sum of:
886          (i) the total number of discharges for assessed private hospitals that are not a private
887     teaching hospital; and
888          (ii) 2.5 times the number of discharges for a private teaching hospital, described in
889     Subsection (1)(b).
890          (d) The division may make rules in accordance with Title 63G, Chapter 3, Utah
891     Administrative Rulemaking Act, to adjust the formula described in Subsection (1)(c) to address
892     unforeseen circumstances in the administration of the assessment under this part.
893          (e) The division shall apply any quarterly changes to the uniform assessment rate

894     uniformly to all assessed private hospitals.
895          (2) Except as provided in Subsection (3), for each state fiscal year, the division shall
896     determine a hospital's discharges as [follows:]
897          [(a) for state fiscal year 2019, the hospital's cost report data for the hospital's fiscal year
898     ending between July 1, 2015, and June 30, 2016; and]
899          [(b) for each subsequent state fiscal year,] the hospital's cost report data for the
900     hospital's fiscal year that ended in the state fiscal year two years before the assessment fiscal
901     year.
902          (3) (a) If a hospital's fiscal year Medicare cost report is not contained in the [Centers
903     for Medicare and Medicaid Services'] CMS Healthcare Cost Report Information System file:
904          (i) the hospital shall submit to the division a copy of the hospital's Medicare cost report
905     applicable to the assessment year; and
906          (ii) the division shall determine the hospital's discharges.
907          (b) If a hospital is not certified by the Medicare program and is not required to file a
908     Medicare cost report:
909          (i) the hospital shall submit to the division the hospital's applicable fiscal year
910     discharges with supporting documentation;
911          (ii) the division shall determine the hospital's discharges from the information
912     submitted under Subsection (3)(b)(i); and
913          (iii) if the hospital fails to submit discharge information, the division shall audit the
914     hospital's records and may impose a penalty equal to 5% of the calculated assessment.
915          (4) Except as provided in Subsection (5), if a hospital is owned by an organization that
916     owns more than one hospital in the state:
917          (a) the division shall calculate the assessment for each hospital separately; and
918          (b) each separate hospital shall pay the assessment imposed by this part.
919          (5) If multiple hospitals use the same Medicaid provider number:
920          (a) the department shall calculate the assessment in the aggregate for the hospitals
921     using the same Medicaid provider number; and
922          (b) the hospitals may pay the assessment in the aggregate.
923          Section 23. Section 26B-3-610 is amended to read:
924          26B-3-610. Hospital reimbursement.

925          (1) [If the qualified Medicaid expansion is implemented by contracting with a
926     Medicaid accountable care organization, the department shall, to] To the extent allowed by
927     law, the department shall in any contract with a Medicaid accountable care organization to
928     implement Medicaid expansion include [in a contract to provide benefits under the qualified
929     Medicaid expansion] a requirement that the Medicaid accountable care organization reimburse
930     hospitals in the Medicaid accountable care organization's provider network at no less than the
931     Medicaid fee-for-service rate.
932          (2) [If the qualified] Where the department implements Medicaid expansion [is
933     implemented by the department] as a fee-for-service program, the department shall reimburse
934     hospitals at no less than the Medicaid fee-for-service rate.
935          (3) Nothing in this section prohibits the department or a Medicaid accountable care
936     organization from paying a rate that exceeds the Medicaid fee-for-service rate.
937          Section 24. Section 26B-3-705 is amended to read:
938          26B-3-705. Calculation of assessment.
939          (1) (a) An annual assessment is payable on a quarterly basis for each hospital in an
940     amount calculated at a uniform assessment rate for each hospital discharge, in accordance with
941     this section.
942          (b) The uniform assessment rate shall be determined using the total number of hospital
943     discharges for assessed hospitals divided into the total non-federal portion in an amount
944     consistent with Section 26B-3-707 that is needed to support capitated rates for Medicaid
945     accountable care organizations for purposes of hospital services provided to Medicaid
946     enrollees.
947          (c) Any quarterly changes to the uniform assessment rate shall be applied uniformly to
948     all assessed hospitals.
949          (d) The annual uniform assessment rate may not generate more than:
950          (i) $1,000,000 to offset Medicaid mandatory expenditures; and
951          (ii) the non-federal share to seed amounts needed to support capitated rates for
952     Medicaid accountable care organizations as provided for in Subsection (1)(b).
953          (2) (a) For each state fiscal year, discharges shall be determined using the data from
954     each hospital's Medicare Cost Report contained in the [Centers for Medicare and Medicaid
955     Services'] CMS Healthcare Cost Report Information System file. The hospital's discharge data

956     [will be derived as follows:]
957          [(i) for state fiscal year 2013, the hospital's cost report data for the hospital's fiscal year
958     ending between July 1, 2009, and June 30, 2010;]
959          [(ii) for state fiscal year 2014, the hospital's cost report data for the hospital's fiscal year
960     ending between July 1, 2010, and June 30, 2011;]
961          [(iii) for state fiscal year 2015, the hospital's cost report data for the hospital's fiscal
962     year ending between July 1, 2011, and June 30, 2012;]
963          [(iv) for state fiscal year 2016, the hospital's cost report data for the hospital's fiscal
964     year ending between July 1, 2012, and June 30, 2013; and]
965          [(v) for each subsequent state fiscal year,] is the hospital's cost report data for the
966     hospital's fiscal year that ended in the state fiscal year two years prior to the assessment fiscal
967     year.
968          (b) If a hospital's fiscal year Medicare Cost Report is not contained in the [Centers for
969     Medicare and Medicaid Services'] CMS Healthcare Cost Report Information System file:
970          (i) the hospital shall submit to the division a copy of the hospital's Medicare Cost
971     Report applicable to the assessment year; and
972          (ii) the division shall determine the hospital's discharges.
973          (c) If a hospital is not certified by the Medicare program and is not required to file a
974     Medicare Cost Report:
975          (i) the hospital shall submit to the division its applicable fiscal year discharges with
976     supporting documentation;
977          (ii) the division shall determine the hospital's discharges from the information
978     submitted under Subsection (2)(c)(i); and
979          (iii) the failure to submit discharge information shall result in an audit of the hospital's
980     records and a penalty equal to 5% of the calculated assessment.
981          (3) Except as provided in Subsection (4), if a hospital is owned by an organization that
982     owns more than one hospital in the state:
983          (a) the assessment for each hospital shall be separately calculated by the department;
984     and
985          (b) each separate hospital shall pay the assessment imposed by this part.
986          (4) Notwithstanding the requirement of Subsection (3), if multiple hospitals use the

987     same Medicaid provider number:
988          (a) the department shall calculate the assessment in the aggregate for the hospitals
989     using the same Medicaid provider number; and
990          (b) the hospitals may pay the assessment in the aggregate.
991          Section 25. Section 26B-3-707 is amended to read:
992          26B-3-707. Medicaid hospital adjustment under Medicaid accountable care
993     organization rates.
994          (1) To preserve and improve access to hospital services, the division shall incorporate
995     into the Medicaid accountable care organization rate structure calculation consistent with the
996     certified actuarial rate range:
997          (a) $154,000,000 to be allocated toward the hospital inpatient directed payments for the
998     Medicaid eligibility categories covered in Utah before January 1, 2019; and
999          (b) an amount equal to the difference between payments made to hospitals by Medicaid
1000     accountable care organizations for the Medicaid eligibility categories covered in Utah, based on
1001     submitted encounter data, and the maximum amount that could be paid for those services, to be
1002     used for directed payments to hospitals for inpatient and outpatient services.
1003          (2) (a) To preserve and improve the quality of inpatient and outpatient hospital services
1004     authorized under Subsection (1)(b), the division shall amend its quality strategies required by
1005     42 C.F.R. Sec. 438.340 to include quality measures selected from the CMS hospital quality
1006     improvement programs.
1007          (b) To better address the unique needs of rural and specialty hospitals, the division may
1008     adopt different quality standards for rural and specialty hospitals.
1009          (c) The division shall make rules in accordance with Title 63G, Chapter 3, Utah
1010     Administrative Rulemaking Act, to adopt the selected quality measures and prescribe penalties
1011     for not meeting the quality standards that are established by the division by rule.
1012          (d) The division shall apply the same quality measures and penalties under this
1013     Subsection (2) to new directed payments made to the University of Utah Hospital and Clinics.
1014          Section 26. Section 26B-3-803 is amended to read:
1015          26B-3-803. Calculation of assessment.
1016          (1) The division shall calculate a uniform assessment per transport as described in this
1017     section.

1018          (2) The assessment due from a given ambulance service provider equals the
1019     non-federal portion divided by total transports, multiplied by the number of transports for the
1020     ambulance service provider.
1021          (3) The division shall apply any quarterly changes to the assessment rate, calculated as
1022     described in Subsection (2), uniformly to all assessed ambulance service providers.
1023          (4) The assessment may not generate more than the total of:
1024          (a) an annual amount of $20,000 to offset Medicaid administration expenses; and
1025          (b) the non-federal portion.
1026          (5) (a) For each state fiscal year, the division shall calculate total transports using [data
1027     from the Emergency Medical System as follows:]
1028          [(i) for state fiscal year 2016, the division shall use ambulance service provider
1029     transports during the 2014 calendar year; and]
1030          [(ii) for a fiscal year after 2016, the division shall use] ambulance service provider
1031     transports [during] data from the Emergency Medical System for the calendar year ending 18
1032     months before the end of the fiscal year.
1033          (b) If an ambulance service provider fails to submit transport information to the
1034     Emergency Medical System, the division may audit the ambulance service provider to
1035     determine the ambulance service provider's transports for a given fiscal year.
1036          Section 27. Section 26B-3-1004 is amended to read:
1037          26B-3-1004. Health insurance entity -- Duties related to state claims for Medicaid
1038     payment or recovery.
1039          (1) As a condition of doing business in the state, a health insurance entity shall:
1040          [(1)] (a) with respect to an individual who is eligible for, or is provided, medical
1041     assistance under the state plan, upon the request of the department, provide information to
1042     determine:
1043          [(a)] (i) during what period the individual, or the spouse or dependent of the individual,
1044     may be or may have been, covered by the health insurance entity; and
1045          [(b)] (ii) the nature of the coverage that is or was provided by the health insurance
1046     entity described in Subsection (1)(a), including the name, address, and identifying number of
1047     the plan;
1048          [(2)] (b) accept the state's right of recovery and the assignment to the state of any right

1049     of an individual to payment from a party for an item or service for which payment has been
1050     made under the state plan;
1051          [(3)] (c) respond within 60 days to any inquiry by the department regarding a claim for
1052     payment for any health care item or service that is submitted no later than three years after the
1053     day on which the health care item or service is provided; [and]
1054          [(4)] (d) not deny a claim submitted by the department solely on the basis of the date of
1055     submission of the claim, the type or format of the claim form, or failure to present proper
1056     documentation at the point-of-sale that is the basis for the claim, if:
1057          [(a)] (i) the claim is submitted no later than three years after the day on which the item
1058     or service is furnished; and
1059          [(b)] (ii) any action by the department to enforce the rights of the state with respect to
1060     the claim is commenced no later than six years after the day on which the claim is submitted[.];
1061     and
1062          (e) not deny a claim submitted by the department or the department's contractor for an
1063     item or service solely on the basis that such item or service did not receive prior authorization
1064     under the third-party payer's rules.
1065          (2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1066     department shall make rules that encourage health care providers to seek prior authorization
1067     when necessary from a health insurance entity that is the primary payer before seeking
1068     third-party liability through Medicaid.
1069          Section 28. Section 63C-18-202 is amended to read:
1070          63C-18-202. Commission established -- Members.
1071          (1) There is created the Behavioral Health Crisis Response Commission, composed of
1072     the following members:
1073          (a) the executive director of the Huntsman Mental Health Institute;
1074          (b) the governor or the governor's designee;
1075          (c) the director of the Office of Substance Use and Mental Health;
1076          (d) one representative of the Office of the Attorney General, appointed by the attorney
1077     general;
1078          (e) the executive director of the Department of Health and Human Services or the
1079     executive director's designee;

1080          (f) one member of the public, appointed by the chair of the commission and approved
1081     by the commission;
1082          (g) two individuals who are mental or behavioral health clinicians licensed to practice
1083     in the state, appointed by the chair of the commission and approved by the commission, at least
1084     one of whom is an individual who:
1085          (i) is licensed as a physician under:
1086          (A) Title 58, Chapter 67, Utah Medical Practice Act;
1087          (B) Title 58, Chapter 67b, Interstate Medical Licensure Compact; or
1088          (C) Title 58, Chapter 68, Utah Osteopathic Medical Practice Act; and
1089          (ii) is board eligible for a psychiatry specialization recognized by the American Board
1090     of Medical Specialists or the American Osteopathic Association's Bureau of Osteopathic
1091     Specialists;
1092          (h) one individual who represents a county of the first or second class, appointed by the
1093     Utah Association of Counties;
1094          (i) one individual who represents a county of the third, fourth, or fifth class, appointed
1095     by the Utah Association of Counties;
1096          (j) one individual who represents the Utah Hospital Association, appointed by the chair
1097     of the commission;
1098          (k) one individual who represents law enforcement, appointed by the chair of the
1099     commission;
1100          (l) one individual who has lived with a mental health disorder, appointed by the chair
1101     of the commission;
1102          (m) one individual who represents an integrated health care system that:
1103          (i) is not affiliated with the chair of the commission; and
1104          (ii) provides inpatient behavioral health services and emergency room services to
1105     individuals in the state;
1106          (n) one individual who represents [an] a Medicaid accountable care organization, as
1107     defined in Section 26B-3-219, with a statewide membership base;
1108          (o) one individual who represents 911 call centers and public safety answering points,
1109     appointed by the chair of the commission;
1110          (p) one individual who represents Emergency Medical Services, appointed by the chair

1111     of the commission;
1112          (q) one individual who represents the mobile wireless service provider industry,
1113     appointed by the chair of the commission;
1114          (r) one individual who represents rural telecommunications providers, appointed by the
1115     chair of the commission;
1116          (s) one individual who represents voice over internet protocol and land line providers,
1117     appointed by the chair of the commission;
1118          (t) one individual who represents the Utah League of Cities and Towns, appointed by
1119     the Utah League of Cities and Towns; and
1120          (u) three or six legislative members, the number of which shall be decided jointly by
1121     the speaker of the House of Representatives and the president of the Senate, appointed as
1122     follows:
1123          (i) if the speaker of the House of Representatives and the president of the Senate jointly
1124     decide to appoint three legislative members to the commission, the speaker shall appoint one
1125     member of the House of Representatives, the president shall appoint one member of the Senate,
1126     and the speaker and the president shall jointly appoint one legislator from the minority party; or
1127          (ii) if the speaker of the House of Representatives and the president of the Senate
1128     jointly decide to appoint six legislative members to the commission:
1129          (A) the speaker of the House of Representatives shall appoint three members of the
1130     House of Representatives, no more than two of whom may be from the same political party;
1131     and
1132          (B) the president of the Senate shall appoint three members of the Senate, no more than
1133     two of whom may be from the same political party.
1134          (2) (a) Except as provided in Subsection (2)(d), the executive director of the Huntsman
1135     Mental Health Institute is the chair of the commission.
1136          (b) The chair of the commission shall appoint a member of the commission to serve as
1137     the vice chair of the commission, with the approval of the commission.
1138          (c) The chair of the commission shall set the agenda for each commission meeting.
1139          (d) If the executive director of the Huntsman Mental Health Institute is not available to
1140     serve as the chair of the commission, the commission shall elect a chair from among the
1141     commission's members.

1142          (3) (a) A majority of the members of the commission constitutes a quorum.
1143          (b) The action of a majority of a quorum constitutes the action of the commission.
1144          (4) (a) Except as provided in Subsection (4)(b), a member may not receive
1145     compensation, benefits, per diem, or travel expenses for the member's service on the
1146     commission.
1147          (b) Compensation and expenses of a member who is a legislator are governed by
1148     Section 36-2-2 and Legislative Joint Rules, Title 5, Legislative Compensation and Expenses.
1149          (5) The Office of the Attorney General shall provide staff support to the commission.
1150          Section 29. Repealer.
1151          This bill repeals:
1152          Section 26B-3-138, Behavioral health delivery working group.
1153          Section 30. FY 2025 Appropriation.
1154          The following sums of money are appropriated for the fiscal year beginning July 1,
1155     2024, and ending June 30, 2025. These are additions to amounts previously appropriated for
1156     fiscal year 2025.
1157          Subsection 30(a). Operating and Capital Budgets.
1158          Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the
1159     Legislature appropriates the following sums of money from the funds or accounts indicated for
1160     the use and support of the government of the state of Utah.
1161     
ITEM 1
     To Department of Health and Human Services - Integrated Health Care Services
1162      From General Fund$701,500
1163      Schedule of Programs:
1164      Medicaid Other Services$701,500
1165     The Legislature intends that the Department of Health and Human Services use the
1166     appropriation to increase primary care provider rates in Medicaid by 2.12%.
1167     
ITEM 2
     To Department of Health and Human Services - Integrated Health Care Services
1168      From General Fund, One-time$800,000
1169      From General Fund$4,800,000
1170      Schedule of Programs:
1171      Non-Medicaid Behavioral Health
Treatment and Crisis Response
$5,600,000
1172     The Legislature intends that the Office of Substance Use and Mental Health pass through the
1173     appropriation provided under this item to each local substance abuse and mental health
1174     authority to pay county contributions to the nonfederal share of Medicaid expenditures.
1175          Section 31. Effective date.
1176          This bill takes effect on May 1, 2024.