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Title II — Encouraging Medicaid Expansion and Strengthening the Medicaid Program

S. 4521 · 116th Congress · Aug 11, 2020 · Lineage

II Encouraging Medicaid Expansion and Strengthening the Medicaid Program

Sec. 201 Incentivizing Medicaid expansion

(a)
In general— Section 1905 of the Social Security Act (42 U.S.C. 1396d(y)(1)) is amended—
(1)
in subsection (y)(1)—
(A)
in subparagraph (A), by striking “2014, 2015, and 2016” and inserting “each of the first 3 consecutive 12-month periods in which the State provides medical assistance to newly eligible individuals”;
(B)
in subparagraph (B), by striking “2017” and inserting “the fourth consecutive 12-month period in which the State provides medical assistance to newly eligible individuals”;
(C)
in subparagraph (C), by striking “2018 ” and inserting “the fifth consecutive 12-month period in which the State provides medical assistance to newly eligible individuals”;
(D)
in subparagraph (D), by striking “2019” and inserting “the sixth consecutive 12-month period in which the State provides medical assistance to newly eligible individuals”; and
(E)
in subparagraph (E), by striking “2020 and each year thereafter” and inserting “the seventh consecutive 12-month period in which the State provides medical assistance to newly eligible individuals and each such period thereafter”; and
(2)
in subsection (z)(2)(B)(i)(II), by inserting “(as in effect on the day before the date of enactment of the Health Care Improvement Act of 2020)” after “subsection (y)(1)”.
(b)
Effective date— Beginning on January 1, 2022, the amendments made by subsection (a) shall take effect as if included in the enactment of the Patient Protection and Affordable Care Act (Public Law 111–148).

Sec. 202 Reducing the administrative FMAP for nonexpansion States

Section 1903 of the Social Security Act (42 U.S.C. 1396b) is amended—
(1)
in subsection (a)(7), by inserting “subsection (bb) and” before “section 1919(g)(3)(B)”; and
(2)
by adding at the end the following new subsection:

“(bb) Reduction of Federal payments for certain administrative costs of nonexpansion States

“(1) In general—In the case of a State that does not provide under the State plan of such State (or waiver of such plan) for making medical assistance available in accordance with section 1902(k)(1) to all individuals described in section 1902(a)(10)(i)(VIII) for a calendar quarter beginning on or after October 1, 2022, the Secretary may reduce the percentage specified in subsection (a)(7) for amounts described in such subsection expended during such quarter by such State by the number of percentage points specified in paragraph (2) for such quarter.

“(2) Amount of reduction—For purposes of paragraph (1), the number of percentage points specified in this paragraph for a calendar quarter is the following:

“(A) For the calendar quarter beginning on October 1, 2022, 0.5.

“(B) For a calendar quarter beginning on or after January 1, 2023, and ending before July 1, 2027, the number of percentage points specified under this paragraph for the previous quarter, plus 0.5.

“(C) For a calendar quarter beginning on or after July 1, 2027, 10.

“(3) Definition—For purposes of this subsection, the term “State” means a State that is one of the 50 States or the District of Columbia.”

Sec. 203 State option to provide 12 months of postpartum Medicaid eligibility

(a)
Option To provide continuous Medicaid and CHIP coverage for pregnant and postpartum women—
(1)
Medicaid— Title XIX of the Social Security Act (42 U.S.C. 1396 et seq.) is amended—
(A)
in section 1902(l)(1)(A), by inserting “(or, at the option of the State, 365-day period)” after “60-day period”;
(B)
in section 1902(e)(6), by inserting “(or, at the option of the State, 365-day period)” after “60-day period”;
(C)
in section 1903(v)(4)(A)(i), by inserting “(or, at the option of the State, 365-day period)” after “60-day period”; and
(D)
in section 1905(a), in the 4th sentence in the matter following paragraph (30), by inserting “(or, at the option of the State, 365-day period)” after “60-day period”.
(2)
CHIP— Section 2112 of the Social Security Act (42 U.S.C. 1397ll) is amended by inserting “(or, at the option of the State, 365-day period)” after “60-day period” each place it appears.
(b)
Requiring full benefits for pregnant and postpartum women—
(1)
Medicaid—
(A)
In general— Paragraph (5) of section 1902(e) of the Social Security Act (24 U.S.C. 1396a(e)) is amended to read as follows:

“(5) Any woman who is eligible for medical assistance under the State plan or a waiver of such plan and who is, or who while so eligible becomes, pregnant, shall continue to be eligible under the plan or waiver for medical assistance through the end of the month in which the 60-day period (or, at the option of the State, 365-day period) (beginning on the last day of her pregnancy) ends, regardless of the basis for the woman's eligibility for medical assistance, including if the woman's eligibility for medical assistance is on the basis of being pregnant.”

(B)
Conforming amendment— Section 1902(a)(10) of the Social Security Act (42 U.S.C. 1396a(a)(10)) is amended in the matter following subparagraph (G) by striking “(VII) the medical assistance” and all that follows through “complicate pregnancy,”.
(2)
CHIP— Section 2107(e)(1) of the Social Security Act (42 U.S.C. 1397gg(e)(1)) is amended—
(A)
by redesignating subparagraphs (H) through (S) as subparagraphs (I) through (T), respectively; and
(B)
by inserting after subparagraph (G), the following:

“(H) Section 1902(e)(5) (requiring 60-day (or, at the option of the State, 365-day) continuous coverage for pregnant and postpartum women).”

(c)
Maintenance of effort—
(1)
Medicaid— Section 1902 of the Social Security Act (42 U.S.C. 1396a) is amended—
(A)
in paragraph (74), by striking “subsection (gg); and” and inserting “subsections (gg) and (qq);”; and
(B)
by adding at the end the following new subsection:

“(qq) Maintenance of effort related to low-Income pregnant women—For calendar quarters beginning on or after the effective date described in section 204(d) of the Health Care Improvement Act of 2020, and before January 1, 2023, no Federal payment shall be made to a State under section 1903(a) for amounts expended under a State plan under this title or a waiver of such plan if the State—

“(1) has in effect under such plan eligibility standards, methodologies, or procedures for individuals described in subsection (l)(1) who are eligible for medical assistance under the State plan or waiver under subsection (a)(10)(A)(ii)(IX) that are more restrictive than the eligibility standards, methodologies, or procedures, respectively, for such individuals under such plan or waiver that are in effect on the date of the enactment of this subsection; or

“(2) provides medical assistance to individuals described in subsection (l)(1) who are eligible for medical assistance under such plan or waiver under subsection (a)(10)(A)(ii)(IX) at a level that is less than the level at which the State provides such assistance to such individuals under such plan or waiver on the date of the enactment of this subsection.”

(2)
CHIP— Section 2112 of the Social Security Act (42 U.S.C. 1397ll), as amended by subsection (b), is further amended by adding at the end the following subsection:

“(g) Maintenance of effort—For calendar quarters beginning on or after the effective date described in section 204(d) of the Health Care Improvement Act of 2020, and before January 1, 2023, no payment may be made under section 2105(a) with respect to a State child health plan if the State—

“(1) has in effect under such plan eligibility standards, methodologies, or procedures for targeted low-income pregnant women that are more restrictive than the eligibility standards, methodologies, or procedures, respectively, under such plan that are in effect on the date of the enactment of this subsection; or

“(2) provides pregnancy-related assistance to targeted low-income pregnant women under such plan at a level that is less than the level at which the State provides such assistance to such women under such plan on the date of the enactment of this subsection.”

(d)
Effective date—
(1)
In general— Except as provided under paragraph (2), the amendments made by subsections (a) and (b) shall take effect on (and the effective date described in this subsection shall be) the first day of the calendar quarter during which the last day of the emergency period described in section 1135(g)(1)(B) of the Social Security Act (42 U.S.C. 1320b–5(g)(1)(B)) occurs.
(2)
Extension of effective date for State law amendment— In the case of a State plan under title XIX or State child health plan under title XXI of the Social Security Act (42 U.S.C. 1396 et seq.; 42 U.S.C. 1397aa et seq.) which the Secretary of Health and Human Services determines requires State legislation (other than legislation appropriating funds) in order for the respective plan to meet the additional requirement imposed by the amendments made by subsection (a) or (b), respectively, the respective plan shall not be regarded as failing to comply with the requirements of such title solely on the basis of its failure to meet such applicable additional requirement before the first day of the first calendar quarter beginning after the close of the first regular session of the State legislature that begins after the date of enactment of this Act. For purposes of the previous sentence, in the case of a State that has a 2-year legislative session, each year of the session is considered to be a separate regular session of the State legislature.

Sec. 204 Supporting State Medicaid programs through economic downturns

(a)
In general— Section 1905 of the Social Security Act (42 U.S.C. 1396d) is amended—
(1)
in subsection (b), by striking “and (ff)” and inserting “(ff), and (gg)”; and
(2)
by adding at the end the following new subsection:

“(gg) Increased FMAP during economic downturns

“(1) In general—If a fiscal quarter that begins on or after January 1, 2020, is an economic downturn quarter (as defined in paragraph (2)) with respect to a State, then the Federal medical assistance percentage determined for each State for such quarter under subsection (b) shall be equal to the percentage determined for the State and quarter under paragraph (3).

“(2) Economic downturn quarter

“(A) In general

“(i) In general—In this subsection, the term economic downturn quarter means, with respect to a State, a fiscal quarter during which the State’s unemployment rate for the quarter exceeds the percentage determined for the State and quarter under clause (ii).

“(ii) Threshold percentage—The percentage determined under this clause for a State and fiscal quarter is the percentage equal to the lower of—

“(I) the State unemployment rate at the 20th percentile of the distribution of the State’s quarterly unemployment rates for the 60-quarter period preceding the quarter involved, increased by 1 percentage point; and

“(II) the State’s average quarterly unemployment rate for the 12-quarter period preceding the quarter involved, increased by 1 percentage point.

“(B) Unemployment data

“(i) In general—Except as provided in clause (ii), for purposes of determining unemployment rates for a State and a quarter under this paragraph, the Secretary shall use data from the Local Area Unemployment Statistics from the Bureau of Labor Statistics.

“(ii) Application to certain territories—In the case of the Virgin Islands, Guam, the Northern Mariana Islands, American Samoa, or any other jurisdiction for which suitable data from the Local Area Unemployment Statistics from the Bureau of Labor Statistics are unavailable, the Secretary shall use data from the U–3 unemployment measure of the Bureau of Labor Statistics to make any necessary determinations under subparagraph (A).

“(3) Increased FMAP during economic downturn quarter

“(A) In general—During a fiscal quarter that is an economic downturn quarter with respect to a State, the Federal medical assistance percentage for the State and quarter determined under subsection (b) shall be equal to—

“(i) the Federal medical assistance percentage determined for the State and quarter under subsection (b) without regard to this subsection (but including any increase to such percentage for such quarter made pursuant to section 6008(a) of the Families First Coronavirus Response Act); increased by

“(ii) the number of percentage points (rounded to the nearest tenth of a percentage point) equal to the product of—

“(I) the number of percentage points (rounded to the nearest tenth of a percentage point) by which the unemployment rate for the State and quarter exceeds the percentage determined for the State and quarter under paragraph (2)(A)(ii); and

“(II) 4.8.

“(B) Rules of application—The following rules shall apply with respect to the Federal medical assistance percentage determined for a State and an economic downturn quarter under this subsection:

“(i) Scope of application—Such Federal medical assistance percentage shall not apply for purposes of—

“(I) disproportionate share hospital payments described in section 1923;

“(II) payments under part D of title IV; or

“(III) any payments under this title that are based on a Federal medical assistance percentage determined for a State under subsection (aa) (but only to the extent that such Federal medical assistance percentage is higher than the economic recovery FMAP).

“(ii) Limitation—In no case shall—

“(I) the Federal medical assistance percentage determined for a State and quarter pursuant to this subsection exceed 95 percent; or

“(II) any increase to the Federal medical assistance percentage determined for a State and quarter pursuant to this subsection result in the application of a Federal medical assistance percentage that exceeds 95 percent.

“(iii) Application to CHIP—Notwithstanding the first sentence of section 2105(b), the application of this subsection may result in the enhanced FMAP of a State for a fiscal year under such section exceeding 85 percent, but in no case may the application of this subsection before application of the second sentence of such section result in the enhanced FMAP of the State exceeding 95 percent.

“(4) Advance payment; retrospective adjustment

“(A) In general—Prior to the beginning of each fiscal quarter that begins on or after July 1, 2020, the Secretary shall, with respect to each State—

“(i) make an initial determination, based on the projections made for the State and quarter under subparagraph (B), as to—

“(I) whether the application of this subsection is expected to result in the application of a higher Federal medical assistance percentage for the State and quarter than the percentage that would otherwise apply without regard to this subsection; and—

“(II) if the application of this subsection is expected to result in such a higher Federal medical assistance percentage for the State and quarter, what such higher percentage is expected to be; and

“(ii) if the Secretary determines under clause (i) that the application of this subsection is expected to result in the application of a higher Federal medical assistance percentage for the State and quarter than the percentage that would otherwise apply without regard to this subsection—

“(I) apply such higher Federal medical assistance percentage of the State for purposes of making payments to the State for amounts expended during such quarter as medical assistance under the State plan; and

“(II) take into account such higher Federal medical assistance percentage of the State for purposes of calculating the enhanced FMAP for the State and quarter under section 2105(b).

“(B) Projection of State unemployment rates—Prior to the beginning of each fiscal quarter that begins on or after July 1, 2020, the Secretary, acting through the Chief Actuary of the Centers for Medicare & Medicaid Services, shall, using the most recently available data described in paragraph (2)(B), make projections with respect to—

“(i) the unemployment rates for each State for such quarter;

“(ii) the threshold percentages described in paragraph (2)(A)(ii) for each State for such quarter; and

“(iii) the national unemployment rate for such quarter.

“(C) Retrospective adjustment—As soon as practicable after final unemployment data becomes available for a fiscal quarter that begins on or after July 1, 2020, the Secretary shall, with respect to each State—

“(i) make a final determination with respect to the application of this subsection for purposes of determining the Federal medical assistance percentage and enhanced FMAP of the State for the quarter; and

“(ii) in accordance with section 1903(d)(2) and section 2105(e), reduce or increase the amount payable to the State under section 1903(a) or section 2105 for a subsequent fiscal quarter to the extent of any overpayment or underpayment under either such section which the Secretary determines was made as a result of an incorrect initial determination under subparagraph (A)(i) with respect to the application of this subsection for purposes of determining the Federal medical assistance percentage and enhanced FMAP of the State for such prior fiscal quarter.

“(5) Retrospective application of over-the-limit FMAP increases

“(A) In general—If a State has excess percentage points with respect to an economic downturn quarter and an applicable FMAP (as determined under subparagraph (B)), the State may elect to apply such excess percentage points to increase such applicable FMAP for one or more quarters during the look-back period for the State and economic downturn quarter in accordance with this paragraph.

“(B) Excess percentage points—For purposes of this paragraph, the number of excess percentage points for a State, economic downturn quarter, and an applicable FMAP shall be equal to the number of percentage points by which—

“(i) the applicable FMAP for the State and quarter (after application of paragraph (3) but without regard to subparagraph (B)(ii) of such paragraph); exceeds

“(ii) 95 percent.

“(C) Effect of application of excess percentage points—If a State elects to apply excess percentage points to an applicable FMAP to a quarter during a look-back period under this paragraph, the Secretary shall determine the additional amount of payment under section 1903(a) to which the State would have been entitled for such quarter if the applicable FMAP (as so increased) had been in effect for such quarter, and shall treat such additional amount as an underpayment for such quarter.

“(D) Distribution of excess percentage points—A State that has excess percentage points with respect to an economic downturn quarter and applicable FMAP may elect to divide such points among more than 1 quarter during the look-back period for such State and quarter provided that no excess percentage point (or fraction of an excess percentage point) is applied to the applicable FMAP of more than 1 quarter.

“(E) Limitations

“(i) No increases over 100 percent—A State may not increase an applicable FMAP for any quarter during a look-back period under this paragraph if such increase would result in the applicable FMAP for such quarter exceeding 100 percent.

“(ii) Scope of application—Any increase to an applicable FMAP of a State for a fiscal quarter under this paragraph—

“(I) shall only apply with respect to payments for amounts expended by the State for medical assistance for services furnished during such quarter to which such applicable FMAP is applicable; and

“(II) shall not apply with respect to payments described in paragraph (3)(B)(i).

“(F) Definitions—In this paragraph:

“(i) Applicable FMAP—The term applicable FMAP means, with respect to a State and fiscal quarter—

“(I) the Federal medical assistance percentage determined for the State and quarter under subsection (b);

“(II) the Federal medical assistance percentage applicable under subsection (y);

“(III) the Federal medical assistance percentage applicable under subsection (z)(2);

“(IV) the Federal medical assistance percentage determined for the State and quarter under subsection (ff); or

“(V) the enhanced FMAP determined for the State and quarter under section 2105(b).

“(ii) Look-back period—The term look-back period means, with respect to a State and a fiscal quarter that is an economic downturn quarter for the State, the period of 4 fiscal quarters that ends with the fourth quarter which precedes the most recent fiscal quarters that was not an economic downturn quarter for the State.

“(6) Requirement for all States—This subsection shall not apply to a State with respect to a fiscal quarter, if—

“(A) eligibility standards, methodologies, or procedures under the State plan or a waiver of such plan are more restrictive during such quarter than the eligibility standards, methodologies, or procedures, respectively, under such plan (or waiver) as in effect on the last day of the most recent fiscal quarter that was not an economic downturn quarter for the State;

“(B) the amount of any premium imposed by the State pursuant to section 1916 or 1916A during such quarter, with respect to an individual enrolled under such plan (or waiver), exceeds the amount of such premium as of the date described in subparagraph (A); or

“(C) the State fails to provide that an individual who is enrolled for benefits under such plan (or waiver) as of the date described in subparagraph (A) or enrolls for benefits under such plan (or waiver) during the period beginning with such date and ending with the day before the first day of the next quarter that is not an economic downturn quarter for the State shall be treated as eligible for such benefits for not less than 12 months after such date or (if later) the date that such individual so enrolls unless the individual requests a voluntary termination of eligibility or the individual ceases to be a resident of the State.”

(b)
Exclusion of economic downturn FMAP increases from territorial caps; special rule for CHIP allotments—
(1)
Exclusion from territorial caps— Section 1108 of the Social Security Act (42 U.S.C. 1308) is amended—
(A)
in subsection (f), in the matter preceding paragraph (1), by striking “subsection (g) and section 1935(e)(1)(B)” and inserting “subsections (g) and (h) and section 1935(e)(1)(B)”; and
(B)
by adding at the end the following:

“(h) Exclusion from caps of amounts attributable to economic downturn FMAP—Any payment made to a territory for a fiscal year in which the Federal medical assistance percentage for the territory is determined under section 1905(gg) shall not be taken into account for purposes of applying payment limits under subsections (f) and (g) to the extent that such payment exceeds the amount of the payment that would have been made to the territory for the year if the Federal medical assistance percentage for the territory had been determined without regard to such section.”

(2)
CHIP allotments— Section 2104(m) of the Social Security Act (42 U.S.C. 1397dd(m)) is amended—
(A)
in paragraph (2)(B), in the matter preceding clause (i), by striking “paragraphs (5) and (7)” and inserting “paragraphs (5), (7), and (12)”; and
(B)
by adding at the end the following new paragraph:

“(12) Special rule for adjusting allotments during fiscal years with economic downturn quarters

“(A) In general—If a fiscal quarter occurring during fiscal year 2020 or any succeeding fiscal year is determined to be an economic downturn quarter with respect to a State (as determined under section 1905(gg)) then, as soon as practicable after such determination, the Secretary shall increase the allotment for the State and fiscal year in accordance with subparagraph (B).

“(B) Amount of increase

“(i) In general—The amount of an increase to the allotment of a State described in subparagraph (A) for a fiscal year shall be equal to the amount by which Federal payments made to the State for the preceding fiscal year under this title would have been increased (without regard to whether such payments would exceed the amount of the State’s allotment for such preceding fiscal year) if the enhanced FMAP determined for the State for such preceding fiscal year had been increased to the same extent that the State's enhanced FMAP for the fiscal year involved is expected to be increased as a result of the application of section 1905(gg) relative to the enhanced FMAP that would apply to the State for the fiscal year involved without the application of such section.

“(ii) Inclusion of projected increases—In increasing the allotment of a State for a fiscal year under this paragraph, the Secretary may base the calculation of such increase on projections made by the Secretary with respect to—

“(I) the number of fiscal quarters during such fiscal year that will be economic downturn quarters; and

“(II) the effect that the application of section 1905(gg) is expected to have on the enhanced FMAP of the State for such fiscal year.

“(C) Disregard of increased payments for purposes of future allotments—Any Federal payment made to a State under this title for a fiscal year in which the Federal medical assistance percentage for the State is determined under section 1905(gg) shall be disregarded when determining the allotment of the State for any subsequent year, including for purposes of applying this paragraph, to the extent that such payment exceeds the amount of the payment that would have been made to the State for the year if the Federal medical assistance percentage for the State and year had been determined without regard to such section.”

Sec. 205 State flexibility to use administrative simplification policies for enrollment

(a)
Permanent extension of medicaid and CHIP express lane option— Section 1902(e)(13) of the Social Security Act (42 U.S.C. 1396a(e)(13)) is amended by striking subparagraph (I).
(b)
Extending express lane eligibility to adults— Section 1902(e)(13)(A) of the Social Security Act (42 U.S.C. 1396a(e)(13)(A)) is amended by adding at the end the following new clause:

“(iii) State option to extend express lane eligibility to adults

“(I) In general—At the option of the State, the State may apply the provisions of this paragraph with respect to determining eligibility under this title for an eligible individual (as defined in subclause (II)). In applying this paragraph in the case of a State making such an option, any reference in this paragraph to a child with respect to this title (other than a reference to child health assistance) shall be deemed to be a reference to an eligible individual.

“(II) Eligible individual defined—In this clause, the term eligible individual means—

“(aa) any individual (other than a child) whose income eligibility under the State plan or under a waiver of the plan for medical assistance is determined under paragraph (14); and

“(bb) an individual included in any other group of individuals the Secretary determines appropriate.”

(c)
Consent by benefit utilization— Section 1902(e)(13)(D)(i) of the Social Security Act (42 U.S.C. 1396a(e)(13)(D)(i)) is amended by inserting “by using medical assistance to access care,” after “through electronic signature,”.
(d)
Study and report on options for automatic enrollment in Medicaid and CHIP—
(1)
Study— The Secretary of Health and Human Services, by grant, contract, or interagency agency, shall conduct a study to identify options for, and barriers to, States automatically enrolling individuals who, on the basis of data and information from income tax returns and other sources, are likely to be eligible for medical assistance under the State Medicaid plan established under title XIX of the Social Security Act (42 U.S.C. 1396 et seq.) (or a waiver of such plan) or for child health assistance (or, if applicable, pregnancy-related assistance) under the State child health plan established under title XXI of the Social Security Act (42 U.S.C. 1397aa et seq.) (or a waiver of such plan), and would not be required to pay a premium for enrollment in such a plan or waiver.
(2)
Report— Not later than 1 year after the date of enactment of this Act, the Secretary of Health and Human Services shall submit a report to Congress on the results of the study conducted under subsection (a). The report shall include the following:
(A)
An analysis of the financial, regulatory, and legislative barriers that limit the ability of States to implement automatic enrollment for individuals described in subsection (a).
(B)
An analysis of the extent to which State implementation of automatic enrollment for such individuals would reduce the number of uninsured individuals in each State.
(C)
Recommendations for administrative and legislative actions that, if taken, would eliminate the barriers identified under subparagraph (A) and allow States to elect to automatically enroll individuals described in subsection (a) in the State Medicaid plan established under title XIX of the Social Security Act (42 U.S.C. 1396 et seq.) (or a waiver of such plan) or for child health assistance (or, if applicable, pregnancy-related assistance) under the State child health plan established under title XXI of the Social Security Act (42 U.S.C. 1397aa et seq.) (or a waiver of such plan).