US SB523

Prohibits federal Medicaid funding from being used for administrative costs of state programs that provide health benefits to unauthorized immigrants who lack satisfactory immigration status

Amends Section 1903(i) of the Social Security Act to add this funding restriction, while still allowing federal payment for systems designed to ensure compliance with the prohibition

Requires the HHS Inspector General to submit a report to Congress within 180 days examining how states separate Medicaid administrative costs from costs for health benefits to ineligible noncitizens

The Inspector General report must analyze state compliance procedures, financing methods (including provider taxes and intergovernmental transfers), and use of the Medicaid Drug Rebate Program and 340B drug discount program for noncitizens

Introduced February 11, 2025 by Senator Cassidy with co-sponsors Barrasso, Wicker, and Hyde-Smith; referred to the Committee on Finance