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PRINTER'S NO. 1773
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1407
Session of
2017
INTRODUCED BY GROVE, McGINNIS, GREINER, TOPPER, BARRAR, MILLARD,
KAUFFMAN, METZGAR, SANKEY, MILNE, RYAN, JAMES, COX, MARSICO,
SAYLOR, PHILLIPS-HILL, ROTHMAN, WHEELAND, B. MILLER, MOUL AND
GILLEN, MAY 19, 2017
REFERRED TO COMMITTEE ON HEALTH, MAY 19, 2017
AN ACT
Amending the act of June 13, 1967 (P.L.31, No.21), entitled "An
act to consolidate, editorially revise, and codify the public
welfare laws of the Commonwealth," in public assistance,
providing for work requirements, lifetime limits, copayments
and health savings accounts and for health savings accounts
for Medicaid enrollees.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of June 13, 1967 (P.L.31, No.21), known
as the Human Services Code, is amended by adding sections to
read:
Section 441.10. Work Requirements, Lifetime Limits,
Copayments and Health Savings Accounts.--(a) No later than
March 1 of each year, the secretary shall apply to the Centers
for Medicare and Medicaid Services of the United States
Department of Health and Human Services for a waiver under
section 1315 of the Social Security Act (49 Stat. 620, 42 U.S.C.
§ 1315) for the following purposes:
(1) Instituting a work requirement for a Medicaid enrollee
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who is eighteen years of age or older and physically and
mentally capable of work. The work requirement shall require a
Medicaid enrollee to become employed, actively seek employment
as verified by the department or attend a job training program
in accordance with the following:
(i) In the case of a Medicaid enrollee who is employed or
attending job training programs in order to maintain enrollment
in the Medicaid program, the Medicaid enrollee shall work twenty
hours a week or complete twelve job training program-related
activities a month.
(ii) A Medicaid enrollee who complies with the work
requirement under subparagraph (i) may have Medicaid premiums or
cost-sharing reduced or other incentives beginning in year two
of employment.
(iii) A Medicaid enrollee who has failed to comply with the
work requirement under subparagraph (i) shall relinquish
Medicaid program eligibility for the following time periods:
(A) Three months beginning in year two of employment.
(B) Six months beginning after the time period under clause
(A) expires.
(C) Nine months beginning after the time period under clause
(B) expires.
(iv) The time period when a Medicaid enrollee has failed to
comply with the work requirement under this paragraph shall
count toward the lifetime limit of Medicaid benefits as
specified under paragraph (5).
(2) Requiring an able-bodied Medicaid enrollee who is
eighteen years of age or older to verify on a biannual basis or
by request of the department the Medicaid enrollee's family
income or the Medicaid enrollee's compliance with the provisions
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under paragraph (1) for the purpose of determining the Medicaid
enrollee's eligibility.
(3) Banning an individual from enrolling in a Medicaid
program if the individual has failed to comply with paragraphs
(1) and (2).
(4) Exempting a Medicaid enrollee from the requirements
under paragraphs (1) and (2) under any of the following
conditions:
(i) The Medicaid enrollee is attending high school as a
full-time student.
(ii) The Medicaid enrollee is currently receiving temporary
or permanent long-term disability benefits.
(iii) The Medicaid enrollee is an individual twenty years of
age or younger or sixty-five years of age or older.
(iv) The Medicaid enrollee is a pregnant woman.
(v) The Medicaid enrollee receives Supplemental Security
Income (SSI) benefits.
(vi) The Medicaid enrollee resides in a mental health
institution or correctional institution.
(vii) The Medicaid enrollee is experiencing a crisis,
serious medical condition or temporary condition that prevents
the Medicaid enrollee from actively seeking employment, such as
domestic violence or substance use treatment.
(5) Setting a lifetime limit of five years of Medicaid
benefits, unless the Medicaid enrollee meets any of the
following conditions:
(i) The Medicaid enrollee is pregnant and has shown a work
history in the time period between pregnancies.
(ii) The Medicaid enrollee is eighteen years of age or older
and attending high school as a full-time student.
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(iii) The Medicaid enrollee is employed full time and meets
the income eligibility requirements for Medicaid and pays future
deductibles from an individual enrollee's Medicaid health
savings account under section 441.11.
(6) De veloping and imposing meaningful copayments to be paid
from an individual Medicaid enrollee's health savings account
under section 441.11 of no less than sixty-five cents (65 ¢ ) and
not more than four dollars ($4) per copayment based on an income
threshold established by the department for the purpose of
deterring the nonemergency use of emergency services and the use
of ambulance services for nonemergency transportation or when
not medically necessary.
(7) D eveloping and executing health savings accounts for all
Medicaid enrollees.
(b) After the secretary submits a waiver request under
subsection (a), the secretary shall notify the Governor, the
General Assembly and the Independent Fiscal Office.
Section 441.11. Health Savings Accounts for Medicaid
enrollees.
(a) The department shall establish a Personal Wellness and
Responsibility Account as an individual health savings account
for Medicaid enrollees.
(b) A Medicaid enrollee shall contribute a predetermined
percent of the Medicaid enrollee's income into an individual
health savings account. The amount shall be at least two percent
of a Medicaid enrollee's annual gross income and not more than
five percent of the Medicaid enrollee's annual gross income. The
percent of the Medicaid enrollee's income shall be assessed by
the department on a graduated scale based on the Medicaid
enrollee's income between one hundred percent and two hundred
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percent of the Federal poverty limit.
(c) The department shall provide cash incentives
to promote the use of accepted preventive care services in a
cost effective manner. The use of preventive care services may
not be subject to the Medicaid enrollee's deductible under the
health savings account.
(d) After a Medicaid enrollee pays the initial deductible
from the individual Medicaid enrollee's health savings account,
the Commonwealth shall make annual deposits into the health
savings account which may be utilized by the Medicaid enrollee
for any future deductibles. The amount of the Medicaid
enrollee's deductible shall be determined by the department and
based off the cost to administer the Commonwealth's Medicaid
program each fiscal year.
(e) The following apply:
(1) A Medicaid enrollee's employer may pay up to fifty
percent of the Medicaid enrollee's deductible allocated from the
individual Medicaid enrollee's health savings account.
(2) A nonprofit organization operating in conjunction with
the Medicaid program may pay up to seventy-five percent of the
Medicaid enrollee's deductible allocated from the individual
Medicaid enrollee's health savings account.
(3) A Medicaid enrollee may only use money deposited in the
individual Medicaid enrollee's heath savings account for
authorized health care services under the Medicaid program.
(4) Money remaining within an individual Medicaid enrollee's
health savings account at the end of the year shall remain in
the health savings account to pay for the Medicaid enrollee's
health care expenses during the subsequent year.
(f) If a Medicaid enrollee is no longer eligible for medical
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care under the State's plan under Title XIX of the Social
Security Act (49 Stat. 620, 42 U.S.C. § 1396 et seq.), the
department shall transfer all funds paid by the individual into
a health savings account.
(g) Payments allocated by the Commonwealth from an
individual Medicaid enrollee's health savings account to pay for
the Medicaid enrollee's deductibles shall not exceed three
hundred thousand dollars ($300,000) annually or one million
dollars ($1,000,000) during the Medicaid enrollee's lifetime.
Section 2. This act shall take effect in 60 days.
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