The "Safeguarding Medicaid Act" mandates asset verification for all Medicaid applicants, requires states to track and report savings from asset verification programs, and allows for corrective action plans for non-compliant states.
John Barrasso
Senator
WY
The "Safeguarding Medicaid Act" mandates asset verification for all Medicaid applicants and recipients nationwide, requiring states to implement electronic asset verification programs and report data to the federal government. It requires states to apply a resources eligibility test to determine if an individual qualifies for Medicaid based on their assets, ensuring that those with excessive resources are not eligible, with the state determining the maximum resource amount allowed. The Centers for Medicare and Medicaid Services (CMS) must establish a federal tracking system to monitor savings resulting from asset verification, and states must report detailed eligibility and renewal data. Non-compliant states may be required to implement corrective action plans.
Nationwide Medicaid Asset Tests Mandated by New Bill; States Face One-Year Deadline for Electronic Verification
A new bill called the Safeguarding Medicaid Act aims to change how people qualify for Medicaid across the country. It requires all states and territories to check the assets – think savings accounts, certain property – of everyone applying for or receiving Medicaid, effectively ending income-only eligibility pathways for many adults who aren't elderly or disabled (Section 2). States generally have one year from the bill's enactment to get electronic systems up and running to verify these assets automatically.
The Asset Test Expansion: What Counts Now?
So, what does this mean practically? Previously, in many states, your income was the main factor for Medicaid eligibility, especially under expansions that covered more low-income adults. This bill shifts the focus (Section 2 & 3). Now, everyone applying will likely face an 'asset test' or 'resource test.' States will look at what you own, not just what you earn, to decide if you qualify. While the bill lets states determine the exact maximum resource amount allowed (Section 3), the requirement to have such a limit and check for it becomes universal. This could mean someone with a modest emergency fund or a paid-off older car, who previously qualified based on low wages, might now be ineligible. The bill does note that continuous eligibility for pregnant women, new mothers, and children shouldn't be affected by this new resource test (Section 3).
States on the Clock: The Tech and Cost Hurdle
Implementing these checks isn't simple. The bill demands states set up 'electronic integrated asset verification programs' within a tight one-year timeframe (Section 2). Imagine automated systems needing to securely and accurately check bank accounts and potentially other financial records for millions of people. While states can request a delay of up to another year if facing 'economic hardship,' this represents a significant administrative and technological lift. Building, integrating, and maintaining these systems will cost states time and money, potentially diverting resources from other priorities.
DC Keeps Tabs: Tracking Savings and State Compliance
Washington will also be keeping a closer eye on things. The Centers for Medicare & Medicaid Services (CMS) is tasked with creating a federal system within two years to track how much money these new asset checks supposedly save (Section 4). States will face detailed reporting requirements, needing to provide data on applications, asset checks conducted, and eligibility outcomes. Furthermore, if CMS finds a state isn't complying with these new rules or existing requirements, it can demand the state submit and implement a 'corrective action plan' (Section 4). This signals a potential increase in federal oversight and pressure on states regarding their Medicaid eligibility processes.