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H0513.................................................by HEALTH AND WELFARE HEALTH INSURANCE - Amends, repeals and adds to existing law relating to public assistance and health insurance; to revise purpose; to revise definitions; to provide a benefit plan for certain children; to create, in the Department of Health and Welfare, the Access to Health Insurance Program; to authorize the director of the Department of Health and Welfare to develop the Access to Health Insurance Program; to establish the Access to Health Insurance Fund; to provide for expenditures from the fund; to provide for the director of the Department of Health and Welfare to apply for waivers of federal law to subsidize health care coverage under the CHIP and Access to Health Insurance Program; to provide for rules; and to provide for payments under the program. 02/11 House intro - 1st rdg - to printing 02/12 Rpt prt - to Health/Wel
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 513 BY HEALTH AND WELFARE COMMITTEE 1 AN ACT 2 RELATING TO PUBLIC ASSISTANCE AND HEALTH INSURANCE; AMENDING SECTION 56-236, 3 IDAHO CODE, TO REVISE THE TITLE; AMENDING SECTION 56-237, IDAHO CODE, TO 4 REVISE THE PURPOSE; AMENDING SECTION 56-238, IDAHO CODE, TO REVISE DEFINI- 5 TIONS; AMENDING SECTION 56-239, IDAHO CODE, TO PROVIDE A BENEFIT PLAN FOR 6 CERTAIN CHILDREN AND TO DELETE A PROVISION CREATING AN ADVISORY BOARD; 7 REPEALING SECTION 56-240, IDAHO CODE, RELATING TO THE CHILDREN'S ACCESS 8 CARD PROGRAM; AMENDING CHAPTER 2, TITLE 56, IDAHO CODE, BY THE ADDITION OF 9 A NEW SECTION 56-240, IDAHO CODE, TO CREATE IN THE DEPARTMENT OF HEALTH 10 AND WELFARE THE ACCESS TO HEALTH INSURANCE PROGRAM; AMENDING CHAPTER 2, 11 TITLE 56, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 56-240A, IDAHO 12 CODE, TO PROVIDE FOR PROGRAM OUTREACH AND MARKETING; REPEALING SECTION 13 56-241, IDAHO CODE, RELATING TO THE SMALL BUSINESS HEALTH INSURANCE PILOT 14 PROGRAM; AMENDING SECTION 56-242, IDAHO CODE, TO REDESIGNATE THE SECTION, 15 TO AUTHORIZE THE DIRECTOR OF THE DEPARTMENT OF HEALTH AND WELFARE TO 16 DEVELOP AN ACCESS TO HEALTH INSURANCE PROGRAM, TO ESTABLISH THE ACCESS TO 17 HEALTH INSURANCE FUND AND TO PROVIDE FOR EXPENDITURES FROM THE FUND, TO 18 PROVIDE FOR THE DIRECTOR OF THE DEPARTMENT OF HEALTH AND WELFARE TO APPLY 19 FOR WAIVERS OF FEDERAL LAW TO SUBSIDIZE HEALTH CARE COVERAGE UNDER THE 20 CHIP AND ACCESS TO HEALTH INSURANCE PROGRAMS, TO PROVIDE FOR RULES AND TO 21 PROVIDE FOR PAYMENTS UNDER THE PROGRAM; AMENDING SECTION 41-406, IDAHO 22 CODE, TO REVISE PROVISIONS RELATING TO APPROPRIATION OF CERTAIN PREMIUM 23 TAX MONEYS; AND AMENDING SECTION 56-254, IDAHO CODE, TO PROVIDE THAT CER- 24 TAIN PERSONS ARE ELIGIBLE FOR MEDICAL ASSISTANCE. 25 Be It Enacted by the Legislature of the State of Idaho: 26 SECTION 1. That Section 56-236, Idaho Code, be, and the same is hereby 27 amended to read as follows: 28 56-236. SHORT TITLE. This act shall be known and may be cited as the 29 "Idaho Access to Health InsuranceAccess CardAct." 30 SECTION 2. That Section 56-237, Idaho Code, be, and the same is hereby 31 amended to read as follows: 32 56-237. PURPOSE. The purpose and intent of this act is to promote the 33 availability of health insurance to children,andfamilies andtoadultswho34are employed by small businessesin Idaho.and their dependent spouses whose35families' gross incomes fall within one hundred eighty-five percent (185%) of36the federal poverty guidelines.37 SECTION 3. That Section 56-238, Idaho Code, be, and the same is hereby 38 amended to read as follows: 39 56-238. DEFINITIONS. As used in sections 56-236 through 56-2421, Idaho 2 1 Code: 2 (1) "Children'saAccesscardto health insurance program" means the pro- 3 gram created in section 56-2401, Idaho Code. 4 (2) "CHIP"Plan A"means theexistingIdaho children's health insurance 5 program for children eligible under federal title XXI.whose families' gross6incomes do not exceed one hundred fifty percent (150%) of the federal poverty7guidelines.8 (3)"CHIP Plan B" means the program created in section 56-239, Idaho9Code.10(4)"Department" means the department of health and welfare. 11 (54) "Director" means the director of the department of health and wel- 12 fare. 13 (65) "Eligible adult" means a person: 14 (a)Over eighteen (18)Nineteen (19) years of age and older living in 15 Idaho; 16 (b) Whose family's gross income isequal to or less thanat or below one 17 hundred eighty-five percent (185%) of the federal poverty guidelines; and 18 (c) Whois employed full time by a small employer, meaning an employer19with two (2) to fifty (50) employees and as such term is defined in sec-20tion 41-4703, Idaho Code, and whois eligible for health insurance cover- 21 age under asmall employerqualified healthbenefitplanregulated under22chapter 47, title 41, Idaho Code, or the dependent spouse of such employee23 as defined in subsection (7) of this section. 24 (76) "Eligible child" means a child under nineteen (19) years of age liv- 25 ing in Idaho whose family's gross income falls withinfederaltitle XXI pov- 26 erty guidelinesfor Medicaid, CHIP Plan A or CHIP Plan Bas defined in rule. 27 (87) "Qualified hHealthbenefitplan" means anyhospital ormedical pol- 28 icyor certificate,any subscriber contract provided by a hospital or profes-29sional service corporation, or managed care organization subscriber contract30 that includes benefits for preventive services, maternity services, inpatient 31 and outpatient hospital services, physician's medical and surgical services, 32 hospice care, ambulance services, durable medical equipment, psychiatric and 33 substance abuse services and pharmacy. Qualified hHealthbenefitplan does not 34 include policies or certificates of insurance for specific disease, hospital 35 confinement indemnity, accident-only, credit, dental, vision, medicare supple- 36 ment, long-term care, or disability income insurance, student health benefits 37 only, coverage issued as a supplement to liability insurance, worker's compen- 38 sation or similar insurance, automobile medical payment insurance or nonrenew- 39 able short-term coverage issued for a period of twelve (12) months or less. 40(9) "Small business health insurance pilot program" means the program41created in section 56-241, Idaho Code.42 SECTION 4. That Section 56-239, Idaho Code, be, and the same is hereby 43 amended to read as follows: 44 56-239. CHIP.PLAN B.(1)There is hereby created in the department a 45CHIP Plan Bbenefit plan that shall be made available by the department to 46 eligible children, as defined in section 56-238, Idaho Code, whose family's 47 gross income isbetween one hundred fifty percent (150%) andup to one hun- 48 dred eighty-five percent (185%) of the federal poverty guidelines.The direc-49tor shall implement the program by adopting rules recommended by the board of50the Idaho high risk reinsurance pool created in section 41-5502, Idaho Code,51that authorize policies of health insurance for children enrolled in the CHIP52Plan B.53(2) There is hereby created a CHIP Plan B advisory board which shall3 1advise the Idaho high risk reinsurance pool board concerning issues related to2the CHIP Plan B. The board shall consist of eight (8) members, four (4) mem-3bers to be appointed by the director and four (4) members to be appointed by4the governor. At least two (2) members of the board shall be parents of chil-5dren who are eligible to participate in the CHIP Plan B.6 SECTION 5. That Section 56-240, Idaho Code, be, and the same is hereby 7 repealed. 8 SECTION 6. That Chapter 2, Title 56, Idaho Code, be, and the same is 9 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 10 ignated as Section 56-240, Idaho Code, and to read as follows: 11 56-240. ACCESS TO HEALTH INSURANCE PROGRAM. (1) There is hereby created 12 in the department the access to health insurance program which will provide 13 health insurance premium assistance for children and adults. The access to 14 health insurance program shall make payments to the insurance company provid- 15 ing coverage under a qualified health plan for eligible children and up to one 16 thousand (1,000) eligible adults, as defined in section 56-238, Idaho Code, 17 based on available funding. The director shall implement the program by 18 adopting rules recommended by the board of the Idaho high risk reinsurance 19 pool created in section 41-5502, Idaho Code, providing for the payment of the 20 benefit authorized in subsection (2) of this section. 21 (2) The access to health insurance program shall make payments to the 22 insurance company providing coverage under a qualified health plan, as defined 23 in section 56-238, Idaho Code, for each eligible child and eligible adult. In 24 each month the insurance coverage is in effect, up to a one hundred dollar 25 ($100) payment shall be applied to the monthly insurance premium billed each 26 month by the insurance company for eligible children and adults, with a maxi- 27 mum payment of three hundred dollars ($300) per month for all eligible chil- 28 dren in the family. 29 (3) Participation in the access to health insurance program shall be 30 optional. Nothing in sections 56-236 through 56-241, Idaho Code, shall be 31 construed to mandate or require that an individual participate in the program. 32 (4) The department shall advise the Idaho high risk reinsurance pool 33 board concerning issues related to the access to health insurance program. 34 (5) Children eligible for both CHIP and the access to health insurance 35 program must choose coverage of one (1) program, but cannot participate in 36 both programs. 37 SECTION 7. That Chapter 2, Title 56, Idaho Code, be, and the same is 38 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 39 ignated as Section 56-240A, Idaho Code, and to read as follows: 40 56-240A. PROGRAM OUTREACH AND MARKETING. The department shall conduct 41 program outreach and marketing. The objective of such outreach and marketing 42 shall be to educate, in as thorough and comprehensive a manner as is practica- 43 ble, community-based organizations and the public about the availability of 44 the program. In addition, the department may provide grants to application 45 agents and other community-based organizations to educate the public about the 46 availability of the program. The department shall adopt rules regarding per- 47 formance standards and outcome measures expected of organizations that are 48 awarded grants under this section, including penalties for nonperformance of 49 contract standards. 4 1 SECTION 8. That Section 56-241, Idaho Code, be, and the same is hereby 2 repealed. 3 SECTION 9. That Section 56-242, Idaho Code, be, and the same is hereby 4 amended to read as follows: 5 56-2421.IDAHO HEALTH INSURANCEACCESSCARDTO HEALTH INSURANCE. (1) The 6 director shall developanthe Idaho access to health insuranceaccess card7 program, created in section 56-240, Idaho Code, in the department toimplement8the children's access card program and the small business health insurance9pilot programprovide premium assistance for children and adults. 10 (2) (a) There is hereby created and established in the state treasury a 11 fund to be known as the"Idaho"access to health insuranceaccess card12 fund." Moneys in the fund shall bemaintained in three (3) subaccounts,13identified respectively as the "CHIP Plan B subaccount," the "children's14access card program subaccount" and the "small business health insurance15pilot program subaccount."expended for the following: access to health 16 insurance for children eligible under title XXI; for CHIP eligible chil- 17 dren with family incomes between one hundred fifty percent (150%) and one 18 hundred eighty-five percent (185%) of federal poverty guidelines; and for 19 access to health insurance for adults with incomes at or below one hundred 20 eighty-five percent (185%) of the federal poverty guidelines. Appropria- 21 tions, matching federal funds, grants, donations and moneys from other 22 sources shall be paid into the fund. The department shall administer the 23 fund. Any interest earned on the investment of idle moneys in the fund 24 shall be returned to and deposited in the fund. 25 (b) Moneys in theCHIP Plan B subaccount, the children's access card pro-26gram subaccount and the small business health insurance pilot program27subaccountaccess to health insurance fund shall be expended pursuant to 28 appropriation for the payment of benefits and capped administrative costs 29 of the department. 30 (3) The director shall apply for waivers of federal title XXI and title 31 XIX to subsidize health care coverage undertheCHIPPlan B, the children's32access card program and the small business health insurance pilot program.and 33 the access to health insurance program and fFederal matching funds received by 34 the department to provide coverage under CHIP, Plan B, the children's access35card program and the small business health insurance pilot programand the 36 access to health insurance program shall bedeposited in the appropriate37subaccountexpended for such purpose. 38 (4) The director is authorized to promulgate rules recommended by the 39 board of the Idaho high risk reinsurance pool to implementtheCHIPPlan B,40the children's access card program and the small business health insurance41pilotand the access to health insurance program. 42 (5) Insurers offering qualified healthbenefitplans,regulated under43chapter 47, title 41, Idaho Codeas defined in section 56-238, Idaho Code, 44 shall accept payment for such plans under thesmall businessaccess to health 45 insurancepilotprogram pursuant to rules promulgated by the department. 46Insurers offering health benefit plans, as defined in section 56-238, Idaho47Code, shall accept payment for such plans under the children's access card48program.49(6) The CHIP Plan B and the children's access card program shall be50implemented by July 1, 2004. Implementation of the small business health51insurance pilot program shall begin on July 1, 2005.52 SECTION 10. That Section 41-406, Idaho Code, be, and the same is hereby 5 1 amended to read as follows: 2 41-406. DEPOSIT AND REPORT OF FEES, LICENSES AND TAXES. (1) The director 3 shall transmit all taxes, fines and penalties collected by him to the state 4 treasurer as provided under section 59-1014, Idaho Code. The director shall 5 file with the state controller a statement of each deposit thus made. All such 6 funds received shall be deposited into the department of insurance suspense 7 account. 8 Such funds shall be distributed as follows: 9 (a) The director may deposit up to twenty percent (20%) of the funds 10 received in the insurance refund account which is hereby created for the 11 purpose of repaying overpayments of any taxes, fines, and penalties or 12 other erroneous receipts. There is hereby appropriated out of the insur- 13 ance refund account so much thereof as shall be necessary for the payment 14 of refunds. Any unencumbered balance remaining in the insurance refund 15 account on June 30 of each and every year in excess of forty thousand dol- 16 lars ($40,000) shall be transferred to the general fund and the state con- 17 troller is hereby authorized and directed on such dates to make such 18 transfers unless the board of examiners, which is hereby authorized to do 19 so, changes the date of transfer or sum to be transferred. 20 (b) That portion of the premium tax, payable to the public employee 21 retirement fund as provided in section 59-1394, Idaho Code, shall be dis- 22 tributed to that fund. 23 (c) That portion of the premium tax necessary to cover administrative 24 costs incurred by the department in placing insurance companies or any 25 other insurance entities into receivership or under administrative super- 26 vision, and such costs cannot be satisfied from the assets of these compa- 27 nies or entities, shall be distributed to the insurance insolvency admin- 28 istrative fund which is hereby created. There is hereby appropriated out 29 of the insurance insolvency administrative fund so much thereof as shall 30 be necessary, but not to exceed two hundred thousand dollars ($200,000) in 31 any one (1) fiscal year, for the payment of the department's administra- 32 tive expenses incurred in carrying out such receiverships or supervision. 33 A balance of one hundred thousand dollars ($100,000) shall be maintained 34 in this fund on June 30 of each year. 35 (d) After all other deductions authorized in this section have been made, 36 if the premium tax remaining exceeds forty-five million dollars 37 ($45,000,000), one-fourth (1/4) of such excess is hereby appropriated and 38 shall be paid to the Idaho high risk individual reinsurance pool estab- 39 lished in chapter 55, title 41, Idaho Code, and one-fourth (1/4) of such 40 excess above fifty-five million dollars ($55,000,000) is hereby appropri- 41 ated and shall be paid to theIdahoaccess to health insuranceaccess card42 fund, established in section 56-2421, Idaho Code, with eighty percent43(80%) of such moneys to be appropriated to the CHIP Plan B subaccount and44the children's access card program subaccount and twenty percent (20%) of45such moneys, not to exceed one million two hundred thousand dollars46($1,200,000) per year, to be appropriated to the small business health47insurance pilot program subaccount. 48 (e) The balance of the premium tax, fines and penalties shall be distrib- 49 uted to the general fund of the state of Idaho. 50 (f) All moneys received for fees, licenses and miscellaneous charges col- 51 lected shall be distributed to the insurance administrative account. 52 (2) The director shall make and file with the state controller an item- 53 ized statement of the fees, licenses, taxes, fines and penalties collected by 54 him during the preceding month, and shall deliver a certified copy of the 6 1 statement to the state treasurer. 2 SECTION 11. That Section 56-254, Idaho Code, be, and the same is hereby 3 amended to read as follows: 4 56-254. ELIGIBILITY FOR MEDICAL ASSISTANCE. The department shall make 5 payments for medical assistance to, or on behalf of, the following persons 6 eligible for medical assistance. 7 (1) The benchmark plan for low-income children and working-age adults 8 with no special health needs includes the following persons: 9 (a) Children in families whose family income does not exceed one hundred 10 eighty-five percent (185%) of the federal poverty guideline and who meet 11 age-related and other eligibility standards in accordance with department 12 rule; 13 (b) Pregnant women of any age whose family income does not exceed one 14 hundred thirty-three percent (133%) of the federal poverty guideline and 15 who meet other eligibility standards in accordance with department rule, 16 or who meet the presumptive eligibility guidelines in accordance with sec- 17 tion 1920 of the social security act; 18 (c) Infants born to medicaid-eligible pregnant women. Medicaid eligibil- 19 ity must be offered throughout the first year of life so long as the 20 infant remains in the mother's household and she remains eligible, or 21 would be eligible if she were still pregnant; 22 (d) Adults in families with dependent children as described in section 23 1931 of the social security act, who meet the requirements in the state's 24 assistance to families with dependent children (AFDC) plan in effect on 25 July 16, 1996; 26 (e) Families who are provided six (6) to twelve (12) months of medicaid 27 coverage following loss of eligibility under section 1931 of the social 28 security act due to earnings, or four (4) months of medicaid coverage fol- 29 lowing loss of eligibility under section 1931 of the social security act 30 due to an increase in child or spousal support; 31 (f)Employees of small businessesPersons who meet the definition of 32 "eligible child" or "eligible adult" asdescribed in section 56-238, Idaho33Code, whose eligibility is limited to the medical assistance program34described in section 56-241defined in section 56-238, Idaho Code; and 35 (g) All other mandatory groups as defined in title XIX of the social 36 security act, if not listed separately in subsection (2) or (3) of this 37 section. 38 (2) The benchmark plan for persons with disabilities or special health 39 needs includes the following persons: 40 (a) Persons under age sixty-five (65) years eligible in accordance with 41 title XVI of the social security act, as well as persons eligible for aid 42 to the aged, blind and disabled (AABD) under titles I, X and XIV of the 43 social security act; 44 (b) Persons under age sixty-five (65) years who are in need of the ser- 45 vices of a licensed nursing facility, a licensed intermediate care facil- 46 ity for the developmentally disabled, a state mental hospital, or home- 47 based and community-based care, whose income does not exceed three hundred 48 percent (300%) of the social security income (SSI) standard and who meet 49 the asset standards and other eligibility standards in accordance with 50 federal law and regulation, Idaho law and department rule; 51 (c) Certain disabled children described in 42 CFR 435.225 who meet 52 resource limits for aid to the aged, blind and disabled (AABD) and income 53 limits for social security income (SSI) and other eligibility standards in 7 1 accordance with department rules; 2 (d) Persons under age sixty-five (65) years who are eligible for services 3 under both titles XVIII and XIX of the social security act; 4 (e) Children who are eligible under title IV-E of the social security act 5 for subsidized board payments, foster care or adoption subsidies, and 6 children for whom the state has assumed temporary or permanent responsi- 7 bility and who do not qualify for title IV-E assistance but are in foster 8 care, shelter or emergency shelter care, or subsidized adoption, and who 9 meet eligibility standards in accordance with department rule; 10 (f) Eligible women under age sixty-five (65) years with incomes at or 11 below two hundred percent (200%) of the federal poverty level, for cancer 12 treatment pursuant to the federal breast and cervical cancer prevention 13 and treatment act of 2000; 14 (g) Low-income children and working-age adults under age sixty-five (65) 15 years who qualify under subsection (1) of this section and who require the 16 services for persons with disabilities or special health needs listed in 17 section 56-255(3), Idaho Code; and 18 (h) Persons over age sixty-five (65) years who choose to enroll in this 19 state plan. 20 (3) The benchmark plan for persons over twenty-one (21) years of age who 21 have medicare and medicaid coverage includes the following persons: 22 (a) Persons eligible in accordance with title XVI of the social security 23 act, as well as persons eligible for aid to the aged, blind and disabled 24 (AABD) under titles I, X and XIV of the social security act; 25 (b) Persons who are in need of the services of a licensed nursing facil- 26 ity, a licensed intermediate care facility for the developmentally dis- 27 abled, a state mental hospital, or home-based and community-based care, 28 whose income does not exceed three hundred percent (300%) of the social 29 security income (SSI) standard and who meet the assets standards and other 30 eligibility standards in accordance with federal and state law and depart- 31 ment rule; 32 (c) Persons who are eligible for services under both titles XVIII and XIX 33 of the social security act who have enrolled in the medicare program; and 34 (d) Persons who are eligible for services under both titles XVIII and XIX 35 of the social security act and who elect to enroll in this state plan.
STATEMENT OF PURPOSE RS 17662 This legislation intends to align current Idaho Statute with policy and practice changes associated with medicaid reform. The bill provides for increased availability of premium assistance to individuals, small businesses, and large businesses. The legislation also tasks the Department of Health and Welfare to conduct program outreach and marketing. FISCAL NOTE No impact to the General Fund. Contact Name: Rep. Margaret Henbest Phone: 332-1235 STATEMENT OF PURPOSE/FISCAL NOTE H 513