The General Assembly Raised Bill No. 1419 aims to prohibit Medicaid reimbursement for health care providers that include training repayment agreement provisions (TRAP) in their contracts with employees. A TRAP is defined as an agreement requiring an employee to provide an employment promissory note, which ties the employee's continued employment to the repayment of training costs. The bill specifies that the Commissioner of Social Services will enforce this prohibition, ensuring that health care providers receiving Medicaid funds do not incorporate TRAP clauses in their employee contracts.
The bill introduces new legal language that defines key terms such as "employee" and "health care provider," and establishes the conditions under which Medicaid reimbursement will be granted. It emphasizes compliance with federal law while implementing these requirements. The act is set to take effect upon passage, reflecting a legislative effort to protect employees from potentially burdensome repayment agreements linked to their training and employment in the health care sector.