Safeguarding Medicaid Act
The Safeguarding Medicaid Act would substantially expand and tighten how Medicaid eligibility is verified and determined. It requires that the Medicaid asset verification program be applied to all applicants and recipients across every state and territory, rather than limited groups. It also introduces a resources test mirroring the Supplemental Security Income (SSI) program’s resource limits, effectively restricting eligibility based on an applicant’s or recipient’s assets in addition to income. The asset verification changes would take effect one year after enactment, with a one-year phase-in for states to develop an electronic asset verification plan. A separate resources test would take effect two years after enactment. The bill also directs the federal government to track savings from asset verification, and it imposes reporting and potential corrective-action requirements on states to improve compliance and transparency. In short, the bill moves Medicaid eligibility toward stricter asset scrutiny and a formal resources test for most applicants and recipients, while creating new federal oversight, reporting, and potential enforcement mechanisms.
Key Points
- 1Expanded asset verification: The asset verification program (as part of the Medicaid eligibility process) would apply to all applicants for and recipients of medical assistance in all states and territories, not just targeted groups.
- 2Elimination and broadening of asset-test basis: The bill would strike specific limiting language and broaden how assets are considered, removing a restriction tied to eligibility “on the basis of being aged, blind, or disabled.”
- 3New resources test (SSI-based): States would be required to apply a resources eligibility test for most determinations of medical assistance, using the SSI maximum resource limits (or a state-established amount) to determine ineligibility for those with too many resources. This does not alter continuous eligibility for pregnant/postpartum women or children under 19.
- 4Implementation timelines: Asset verification would take effect 1 year after enactment, with a 1-year phase-in for states to submit and implement an electronic integrated asset verification plan; the new resources test would take effect 2 years after enactment.
- 5Federal tracking, reporting, and enforcement: HHS/CMS would create a federal system to track federal Medicaid savings tied to asset verification. States would report periodically on eligibility determinations, renewals, and asset checks, with the possibility of corrective-action plans if a state is found out of compliance.