House Bill 894 Summary

• Directs the Governor and Division of Medicaid to negotiate with the Centers for Medicare and Medicaid Services for a Section 1115 waiver to expand Medicaid coverage to adults with incomes up to 138% of the Federal Poverty Level.

• Establishes a private market-based health coverage plan with at least two qualified health plan options, requiring cost-sharing contributions from enrollees earning 50-138% of FPL, capped at 2-5% of income depending on income level.

• Creates the Mississippi Healthy Living Account as a health savings account where enrollees make quarterly contributions to cover copays and cost-sharing, with no cost-sharing required for the first six months of enrollment.

• Requires the plan to automatically end if the federal contribution rate falls below 90%, and provides that premiums will be paid directly by Medicaid to qualified health plans rather than by enrollees.

• Amends Mississippi Code Section 43-13-115 to add a new category (28) of Medicaid recipients eligible under the Section 1115 waiver, effective July 1, 2016.