Senate Bill No. 1481 aims to prohibit discrimination in services funded under Medicaid by requiring providers to agree, in writing, not to discriminate against individuals whose rights are protected under the state's human rights statutes, as a condition for receiving Medicaid reimbursement. The bill specifies that the Commissioner of Social Services has the authority to withhold Medicaid payments from any provider found to have engaged in discrimination, although it does not clarify which entity will be responsible for making such determinations. This new requirement is intended to strengthen protections against discrimination based on various factors, including race, national origin, creed, sex, gender identity or expression, color, veteran status, and domestic violence victim status.

The bill introduces new legal language that mandates this written agreement from providers and allows for the withholding of payments, while it also reflects a potential fiscal impact on the Department of Social Services due to possible savings from reduced Medicaid payments to non-compliant providers. The act is set to take effect upon passage, and it builds upon existing practices where providers are already required to comply with federal and state anti-discrimination laws as part of their Medicaid agreements.