The proposed legislation, 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 binds them to certain conditions related to their training and employment. The bill mandates that, to the extent allowed by federal law, the Commissioner of Social Services will enforce this prohibition as a condition for Medicaid reimbursement.

The bill introduces new legal language that defines key terms such as "employee" and "health care provider," and establishes the requirement for health care providers to refrain from including TRAP clauses in employee contracts. The act is set to take effect upon passage, reflecting a significant shift in the relationship between Medicaid reimbursement and employment agreements within the health care sector.