The bill under consideration, Substitute Senate Bill No. 313, proposes amendments to the Medicaid eligibility process for children under the age of six. The bill, identified as File No. 256, is recommended by the Committee on Human Services and is set to be effective from July 1, 2024. It requires the Department of Social Services (DSS) to implement continuous Medicaid eligibility for children until they reach the age of six, after which their eligibility will be reassessed annually in accordance with state law. The bill also includes provisions for presumptive eligibility for Medicaid for children, and for children in households with income not exceeding 318 percent of the federal poverty level applying for HUSKY B, with the process to be in line with federal law and regulations. The bill mandates the commissioner to adopt regulations for designating qualified entities to grant presumptive eligibility and to assist applicants with the completion and submission of applications for full eligibility determination.

The fiscal impact statement attached to the bill indicates that the DSS will incur initial costs of up to $950,000 in FY 25 for waiver development and system costs associated with the extended eligibility requirements. The ongoing costs for maintaining support for children who would have otherwise exited the program are estimated to be approximately $6.5 million in FY 26, with costs expected to increase annually until they are annualized at up to $55 million by approximately FY 30. The bill analysis clarifies that continuous eligibility allows a person to remain enrolled in Medicaid for a specific period even if their income changes, and federal law requires all states to provide 12 months of continuous eligibility for children under the age of 19. States can seek a Medicaid waiver for federal approval to extend continuous eligibility to children for multiple years. The bill passed the Human Services Committee with a vote of 15 to 7 on March 19, 2024.