HB0704 - Medicaid Smart Card Pilot Program Act

• Requires the Director of the Department of Healthcare and Family Services to establish a Medicaid Smart Card Pilot Program designed to reduce average monthly Medicaid costs per recipient by an amount sufficient to recover implementation costs.

• Mandates distribution of Medicaid Smart Cards to designated recipients with authentication measures at point of transaction to prevent card sharing, fraud, and abuse by both recipients and providers.

• Authorizes the pilot program to include secure Internet-based systems for transaction recording, eligibility verification, data-mining analysis, electronic prescribing integration, and quick-pay provider incentives.

• Requires annual evaluations assessing cost savings, variations by provider type and geography, recipient satisfaction, and health care service utilization compared to non-pilot areas.

• Establishes that the pilot program terminates 2 years after enactment unless extended by the Director based on achievement of cost-reduction objectives, with expansion requiring demonstrated savings to the Medical Assistance Program.