LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS 200 W. Washington St., Suite 301 Indianapolis, IN 46204 (317) 233-0696 iga.in.gov FISCAL IMPACT STATEMENT LS 6950 NOTE PREPARED: Jan 10, 2024 BILL NUMBER: HB 1392 BILL AMENDED: SUBJECT: Medicaid Work Requirements. FIRST AUTHOR: Rep. Slager BILL STATUS: As Introduced FIRST SPONSOR: FUNDS AFFECTED:XGENERAL IMPACT: State XDEDICATED XFEDERAL Summary of Legislation: The bill sets forth work requirements for certain individuals in order to be eligible for Medicaid, and it makes exceptions. The bill requires the Office of the Secretary of Family and Social Services to apply for any state plan amendment or Medicaid waiver necessary and to continue to apply for the plan amendment or waiver request if the plan amendment or waiver is denied by the United States Department of Health and Human Services. Effective Date: July 1, 2024. Explanation of State Expenditures: If the amendment or waiver is approved, the bill’s work requirements may decrease the number of Medicaid recipients in the state which would decrease state Medicaid expenditures. Any potential decrease is indeterminable and will depend on the number of non-exempt individuals who do not comply with the bill’s requirements. The Office of the Secretary of Family and Social Services (FSSA) must apply for plan amendments and waivers, as prescribed in the bill, and if the amendment or waiver is approved, must establish a reporting process regarding the bill’s work requirements. This is within the agency’s routine administrative functions and should be able to be implemented with no additional appropriations, assuming near customary agency staffing and resource levels. The Office of Administrative Law Proceedings may have additional workload to make determinations of loss of Medicaid coverage resulting from the bill’s work requirements. This is within the agency’s routine administrative functions. HB 1392 1 Additional Information: Medicaid is jointly funded between the state and federal governments. The state share of costs for most Medicaid medical services for FFY 2024 is 34%, and is 10% for the age 19 to 64 expansion population within the Healthy Indiana Plan (HIP). The state share of administrative costs is 50%. The state share of most Medicaid expenditures is paid from General Fund appropriations, and state dedicated funds primarily cover HIP costs. Explanation of State Revenues: Explanation of Local Expenditures: Explanation of Local Revenues: State Agencies Affected: Family and Social Services Administration; Office of Administrative Law Proceedings. Local Agencies Affected: Information Sources: Fiscal Analyst: Karen Rossen, 317-234-2106. HB 1392 2