The bill, SB 254, aims to enhance health coverage stability for children in Rhode Island by establishing continuous eligibility for Medicaid (RIte Track/RIte Care) for individuals up to age three. It addresses the issue of "churn," where children may lose their health coverage due to administrative barriers during yearly eligibility redetermination. The bill recognizes the importance of consistent health coverage in ensuring timely access to preventive care and necessary treatments.

To implement this change, the bill amends the title of Chapter 42-12.3 from "Health Care for Children and Pregnant Women" to "ACT TO STABILIZE HEALTH COVERAGE FOR YOUNG CHILDREN." It introduces a new section, 42-12.3-17, which mandates continuous eligibility for children under three years old until the end of the month in which their third birthday falls. Continuous eligibility may end if the individual is no longer a resident of Rhode Island, if the parent or guardian requests termination, if the individual dies, or if the executive office of health and human services determines that eligibility was erroneously granted.

Additionally, the executive office of health and human services is tasked with seeking any necessary amendments to the Rhode Island Medicaid Section 1115 waiver to facilitate this continuous coverage. The act is set to take effect upon passage.