HLS 13RS-1045 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. 449 BY REPRESENTATIVE BURRELL Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. MEDICAID: Provides for a time-limited expansion of Medicaid eligibility standards in La. to conform such standards to those provided in the Affordable Care Act until Dec. 31, 2016 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 979.5, relative to the medical assistance program; to3 provide for eligibility for benefits of the medical assistance program; to require state4 participation in the medical assistance program expansion provided in federal law;5 to provide for duties of the secretary of the Department of Health and Hospitals; to6 provide relative to the medical assistance program state plan; to authorize7 promulgation of rules; to establish a termination date for state participation in8 medical assistance program expansion; and to provide for related matters.9 Be it enacted by the Legislature of Louisiana:10 Section 1. Chapter 8-B of Title 46 of the Louisiana Revised Statutes of 1950,11 comprised of R.S. 46:979.1 through 979.5, is hereby enacted to read as follows: 12 CHAPTER 8-B. MEDICAL ASSISTANCE PROGRAM EXPANSI ON13 §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-1045 ORIGINAL HB NO. 449 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 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 111-152.6 (2) "Centers for Medicare and Medicaid Services" means the division of the7 United States Department of Health and Human Services of that name which8 regulates the Medicaid program.9 (3) "Department" means the Department of Health and Hospitals.10 (4) "Medicaid" and "medical assistance program" mean the medical11 assistance program provided for in Title XIX of the Social Security Act.12 (5) "Secretary" means the secretary of the Department of Health and13 Hospitals.14 §979.2. Legislative findings; declaration15 A. The Legislature of Louisiana does hereby find and declare the following:16 (1) The Affordable Care Act, referred to hereafter in this Chapter as the17 "ACA", sets forth health policy reforms which reshape the way virtually all18 Americans will receive and finance their health care.19 (2) In a decision announced on June 28, 2012, the Supreme Court of the20 United States in National Federation of Independent Business Et Al. v. Sebelius,21 Secretary of Health and Human Services, Et Al. upheld the overall constitutionality22 of the ACA; but in the same ruling, a majority of the court held that the mandatory23 expansion of Medicaid eligibility as provided in the ACA is unconstitutionally24 coercive of states, thereby making participation in the Medicaid expansion a25 voluntary proposition for each state.26 (3) At twenty-five percent of the federal poverty level, or just under five27 thousand eight hundred dollars in annual income for a family of four presently, the28 HLS 13RS-1045 ORIGINAL HB NO. 449 Page 3 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. income eligibility threshold of this state for Medicaid benefits for parents of1 Medicaid-eligible children is the second-lowest in the nation.2 (4) Pursuant to provisions of the ACA, federal regulations, and guidance3 issued by the Centers for Medicare and Medicaid Services, the following conditions4 shall apply in each state which participates in the Medicaid expansion:5 (a) The Medicaid income eligibility threshold increases to one hundred6 thirty-three percent of the federal poverty level, or thirty thousand seven hundred7 thirty-three dollars in annual income for a family of four presently, for all persons8 of ages nineteen to sixty-four beginning on January 1, 2014.9 (b) The federal share of funding for Medicaid benefits for persons who10 became eligible due to the expansion is one hundred percent from 2014 through11 2017.12 (c) The federal share of funding for Medicaid benefits for persons who13 became eligible due to the expansion phases down from one hundred percent to14 ninety percent between 2017 and 2020, with the federal share remaining at ninety15 percent in ensuing years.16 (d) Acceptance of full federal financing of an expanded Medicaid program17 during any part of the first three years of the expansion does not obligate the state to18 continue its expanded Medicaid program subsequently.19 (5) Within federally provided guidelines, the secretary of the department20 may establish and modify eligibility standards for the Medicaid program through21 amendments to the Medicaid state plan and to administrative rules providing for22 operation of the program.23 (6) The legislature declares that participation in the expansion of Medicaid24 eligibility as provided in the ACA with an option to discontinue such participation25 at any point is in the best interest of the state.26 §979.3. Purposes27 The purposes of this state in expanding Medicaid eligibility to conform to the28 standards provided in the ACA, as required by this Chapter, are as follows:29 HLS 13RS-1045 ORIGINAL HB NO. 449 Page 4 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (1) To maximize the number of Louisianians who are covered by some form1 of health insurance.2 (2) To provide basic health coverage to the working poor of the state who3 are not offered insurance through their employer and do not earn enough money to4 meet basic family needs and pay for private health insurance.5 (3) To assure health care providers who serve low- to moderate-income6 persons of some amount of compensation for the care they provide, as the ACA7 provides for a dramatic reduction in funding to federal programs which currently8 finance care for the uninsured as a means of financing the Medicaid expansion.9 (4) To avail the state of an expanding resource for medical care for its10 neediest citizens while other sources of financing for such care are being drastically11 diminished.12 §979.4. Expansion of Medicaid eligibility; duties of the secretary of the Department13 of Health and Hospitals14 On or before September 1, 2013, the secretary of the department shall take15 all of the following actions:16 (1) File a Medicaid state plan amendment with the Centers for Medicare and17 Medicaid Services to provide that beginning on January 1, 2014, eligibility standards18 for medical assistance program benefits in Louisiana conform to the minimum19 eligibility standards as provided in the Patient Protection and Affordable Care Act20 (P.L. 111-148) and codified in federal regulations relative to medical assistance21 program coverage (42 CFR 435.119).22 (2) Promulgate all rules and regulations in accordance with the23 Administrative Procedure Act as are necessary to implement the provisions of this24 Chapter.25 §979.5. Expanded Medicaid eligibility; termination26 A. The provisions of this Chapter shall terminate on December 31, 2016.27 B. The secretary is hereby authorized to take such actions as are necessary28 to revise the Medicaid income eligibility threshold to any level allowed by federal29 HLS 13RS-1045 ORIGINAL HB NO. 449 Page 5 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. law other than that provided in R.S. 46:979.4, and to cause such revised income1 eligibility threshold to take effect no sooner than January 1, 2017.2 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)] Burrell HB No. 449 Abstract: Provides for a time-limited expansion of Medicaid eligibility standards in La. to conform such standards to those provided in the Affordable Care Act until Dec. 31, 2016. 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 assure health care providers who serve low- to moderate-income persons of some amount of compensation for the care they provide, as the ACA provides for a dramatic reduction in funding to federal programs which currently finance care for the uninsured as a means of financing the Medicaid expansion. (4)To avail the state of an expanding resource for medical care for its neediest citizens while other sources of financing for such care are being drastically diminished. Proposed law provides that proposed law shall terminate on Dec. 31, 2016. Further, authorizes the secretary of DHH to revise the Medicaid income eligibility threshold to any level allowed by federal law other than that required by preceding provisions of proposed law, and to cause such revised income eligibility threshold to take effect no sooner than Jan. 1, 2017. Effective upon signature of governor or lapse of time for gubernatorial action. (Adds R.S. 46:979.1-979.5)