The bill under consideration, identified as Substitute Senate Bill No. 313 with File No. 256, proposes amendments to the current Medicaid eligibility regulations for children under the age of six. The bill 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 according to state law. This change is set to take effect on July 1, 2024, and involves the insertion of new legal language into subsection (e) of section 17b-292 of the 2024 supplement to the general statutes. The insertions include the implementation of presumptive eligibility for Medicaid for children and the provision of continuous Medicaid eligibility for children under six. The bill also includes a deletion for clarity, removing the phrase "under the age of" before "six."

The fiscal impact statement attached to the bill indicates that the DSS will incur costs due to the requirement of continuous eligibility under Medicaid for children up to age six. Initial costs are estimated to be up to $950,000 in FY 25 for waiver development and system updates, with ongoing costs of approximately $6.5 million in FY 26. These costs are expected to increase annually until they are annualized around FY 30, potentially reaching up to $55 million. 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 that federal law requires states to provide 12 months of continuous eligibility for children under 19, with the option to apply for a waiver to extend this period.