HLS 13RS-679 ORIGINAL Page 1 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Regular Session, 2013 HOUSE BILL NO. 110 BY REPRESENTATIVE NORTON Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. MEDICAID: Requires that La. Medicaid eligibility standards conform to those established by the Affordable Care Act AN ACT1 To enact Chapter 8-B of Title 46 of the Louisiana Revised Statutes of 1950, to be comprised2 of R.S. 46:979.1 through 979.4, relative to eligibility for benefits of the medical3 assistance program; to require state participation in the medical assistance program4 expansion provided in federal law; to provide for duties of the secretary of the5 Department of Health and Hospitals; to provide relative to the medical assistance6 program state plan; to authorize promulgation of rules; and to provide for related7 matters.8 Be it enacted by the Legislature of Louisiana:9 Section 1. Chapter 8-B of Title 46 of the Louisiana Revised Statutes of 1950,10 comprised of R.S. 46:979.1 through 979.4, is hereby enacted to read as follows: 11 CHAPTER 8-B. FEDERALLY PROVIDED MEDICAL ASSISTANCE12 PROGRAM EXPANSION13 §979.1. Definitions14 As used in this Chapter, the following terms shall have the meaning ascribed15 to them in this Section:16 (1) "ACA" and "Affordable Care Act" mean the following Acts of Congress,17 collectively:18 HLS 13RS-679 ORIGINAL HB NO. 110 Page 2 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (a) The Patient Protection and Affordable Care Act, which originated as H.R.1 3590 in the One Hundred Eleventh United States Congress and became Public Law2 No. 111-148.3 (b) The Health Care and Education Reconciliation Act, which originated as4 H.R. 4872 in the One Hundred Eleventh United States Congress and became Public5 Law No. 111-152.6 (2) "Department" means the Department of Health and Hospitals.7 (3) "Medicaid" and "medical assistance program" mean the medical8 assistance program provided for in Title XIX of the Social Security Act.9 §979.2. Legislative findings; declaration10 The Legislature of Louisiana does hereby find and declare the following:11 (1) The Affordable Care Act, referred to hereafter in this Chapter as the12 "ACA", sets forth monumental health policy reforms, as it reshapes the way virtually13 all Americans will receive and finance their health care.14 (2) Among the key features of the ACA are rights and protections for health15 care consumers, accountability measures for insurance companies, expanded16 eligibility for the Medicaid program, and a requirement that every American17 maintain a minimum level of health insurance coverage.18 (3) In a decision announced on June 28, 2012, the Supreme Court of the19 United States in National Federation of Independent Business Et Al. v. Sebelius,20 Secretary of Health and Human Services, Et Al. upheld the overall constitutionality21 of the ACA; but in the same ruling, a majority of the court held that the mandatory22 expansion of Medicaid eligibility as provided in the ACA is unconstitutionally23 coercive of states, thereby making participation in the Medicaid expansion a24 voluntary proposition for states.25 (4) At twenty-five percent of the federal poverty level, or just under five26 thousand eight hundred dollars in annual income for a family of four presently, the27 income eligibility threshold of this state for Medicaid benefits for parents of28 Medicaid-eligible children is the second-lowest in the nation.29 HLS 13RS-679 ORIGINAL HB NO. 110 Page 3 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (5) All of the following provisions of the ACA apply in states which1 participate in the Medicaid expansion:2 (a) The Medicaid income eligibility threshold increases to one hundred3 thirty-three percent of the federal poverty level, or thirty thousand seven hundred4 thirty-three dollars in annual income for a family of four presently, for all persons5 of ages nineteen to sixty-four beginning on January 1, 2014.6 (b) The federal share of funding for Medicaid benefits for persons who7 became eligible due to the expansion is one hundred percent from 2014 through8 2017.9 (c) The federal share of funding for Medicaid benefits for persons who10 became eligible due to the expansion phases down from one hundred percent to11 ninety percent between 2017 and 2020, with the federal share remaining at ninety12 percent in ensuing years.13 (6) The many thousands of working poor families in Louisiana who earn14 income from employment but who cannot afford health insurance will derive the15 greatest benefits of the Medicaid expansion in this state; and correspondingly, will16 be penalized to the greatest extent financially by the provisions of the ACA if the17 state refuses to participate in the Medicaid expansion and those families fail to18 maintain health coverage as required by law after January 1, 2014.19 (7) Therefore the legislature declares that due to compelling moral and20 economic reasons, participation in the expansion of Medicaid as provided in the21 ACA is in the best interest of this state.22 §979.3. Purposes23 The purposes of this state in expanding Medicaid eligibility to conform to the24 standards provided in the ACA, as required by this Chapter, are as follows:25 (1) To maximize the number of Louisianians who are covered by some form26 of health insurance.27 HLS 13RS-679 ORIGINAL HB NO. 110 Page 4 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (2) To provide basic health coverage to the working poor of the state who1 are not offered insurance through their employer and do not earn enough money to2 meet basic family needs and pay for private health insurance.3 (3) To protect the working poor and other financially vulnerable persons4 from being forced to obtain private insurance or be penalized financially, as provided5 in the ACA, for not maintaining health coverage.6 (4) To assure health care providers who serve low- to moderate-income7 persons of some amount of compensation for the care they provide, as the Medicaid8 expansion is partly funded by a dramatic reduction in funding to federal programs9 which currently finance care for the uninsured.10 (5) To avert the economic and human costs of crises in both access to health11 care and health services financing which are likely to result from not participating12 in an expansion of a federal program while other major programs which finance13 medical care for the uninsured and the indigent are being drastically reduced.14 §979.4. Expansion of Medicaid eligibility; duties of the secretary of the Department15 of Health and Hospitals16 On or before September 1, 2013, the secretary of the department shall take17 all of the following actions:18 (1) File a Medicaid state plan amendment with the Centers for Medicare and19 Medicaid Services to provide that beginning on January 1, 2014, eligibility standards20 for medical assistance program benefits in Louisiana shall conform to the minimum21 eligibility standards as provided in the Patient Protection and Affordable Care Act22 (P.L. 111-148) and codified in federal regulations relative to medical assistance23 program coverage (42 CFR 435.119).24 (2) Promulgate all rules and regulations in accordance with the25 Administrative Procedure Act as are necessary to implement the provisions of this26 Chapter.27 Section 2. This Act shall become effective upon signature by the governor or, if not28 signed by the governor, upon expiration of the time for bills to become law without signature29 HLS 13RS-679 ORIGINAL HB NO. 110 Page 5 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If1 vetoed by the governor and subsequently approved by the legislature, this Act shall become2 effective on the day following such approval.3 DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] Norton HB No. 110 Abstract: Requires that La. Medicaid eligibility standards conform to those established by the Affordable Care Act. Proposed law requires the secretary of DHH to take such actions as are necessary to expand Louisiana's Medicaid eligibility standards to conform to those established by the Affordable Care Act (ACA) commencing on January 1, 2014. Provides that such actions by the secretary shall include: (1)On or before September 1, 2013, filing of the Medicaid state plan amendment necessary to expand Medicaid eligibility in accordance with proposed law. (2)On or before September 1, 2013, promulgating all rules and regulations as are necessary to expand Medicaid eligibility in accordance with proposed law. Proposed law declares that the purposes of the state in expanding Medicaid eligibility as provided in proposed law are as follows: (1)To maximize the number of Louisianians who are covered by some form of health insurance. (2)To provide basic health coverage to the working poor of the state who are not offered insurance through their employer and do not earn enough money to meet basic family needs and pay for private health insurance. (3)To protect the working poor and other financially vulnerable persons from being forced to obtain private insurance or be penalized financially, as provided in the ACA, for not maintaining health coverage. (4)To assure health care providers who serve low- to moderate-income persons of some amount of compensation for the care they provide. (5)To avert the economic and human costs of crises in both access to health care and health services financing which are likely to result from not participating in an expansion of a federal program while other major programs which finance medical care for the uninsured and the indigent are being drastically reduced. Effective upon signature of governor or lapse of time for gubernatorial action. (Adds R.S. 46:979.1-979.4)