HB 978 Summary

• Establishes a Medicaid Sustainability Program effective July 1, 2021, with a sunset date of December 31, 2023 (certain provisions extended to June 30, 2024).

• Creates a medicaid sustainability fee assessed on health insurers based on member months, with tiered rates up to $12 per medicaid member month for tier one and up to $15 for tier two, plus $1.00 per non-medicaid member month for tier one.

• Establishes a medicaid sustainability program special fund administered by the Department of Human Services to receive fee revenue and federal matching funds, with all moneys used exclusively for medicaid-covered healthcare services and program administration.

• Appropriates $100,000,000 from the special fund for each of fiscal years 2021-2022 and 2022-2023 for medicaid program purposes.

• Requires the Department of Human Services to seek necessary federal waivers and approvals from the Centers for Medicare and Medicaid Services to implement the program.