Sec. A-1. 22 MRSA §3174-G, sub-§1, as enacted by PL 1989, c. 502, Pt. A, §72, is amended to read:
1. Delivery of services. The department shall provide for the delivery of federally approved Medicaid services to qualified pregnant women up to 60 days following delivery and infants up to one year of age when the woman's or child's family income is below 185% of the nonfarm income official poverty line and children under 5 years of age and, qualified elderly and disabled persons, when the child's or person's family income is below 100% of the nonfarm income official poverty line and children one year of age or older and under 19 years of age when the family income is below 150% of the nonfarm income official poverty line. The official poverty line shall be is that applicable to a family of the size involved, as defined by the Federal Office of Management and Budget and revised annually in accordance with the United States Omnibus Budget Reconciliation Act of 1981, Section 673, Subsection 2. These services shall be effective October 1, 1988.
Sec. A-2. 22 MRSA §3174-R is enacted to read:
1. Program established. The Cub Care program is established to provide health coverage for low-income children who are ineligible for benefits under the Medicaid program and who meet the requirements of subsection 2. The purpose of the Cub Care program is to provide health coverage to as many children as possible within the fiscal constraints of the program budget and without forfeiting any federal funding that is available to the State for the State Children's Health Insurance Program through the federal Balanced Budget Act of 1997, Public Law 105-33, 111 Stat. 251, referred to in this section as the Balanced Budget Act of 1997.
2. Eligibility; enrollment. Health coverage under the Cub Care program is available to children one year of age or older and under 19 years of age whose family income is above the eligibility level for Medicaid under section 3174-G and below the maximum eligibility level established under paragraphs A and B, who meet the requirements set forth in paragraph C and for whom premiums are paid under subsection 5.
A. The maximum eligibility level, subject to adjustment by the commissioner under paragraph B, is 185% of the nonfarm income official poverty line.
B. If the commissioner has determined the fiscal status of the Cub Care program under subsection 8 and has determined that an adjustment in the maximum eligibility level is required under this paragraph, the commissioner shall adjust the maximum eligibility level in accordance with the requirements of this paragraph.
(1) The adjustment must accomplish the purposes of the Cub Care program set forth in subsection 1.
(2) If Cub Care program expenditures are reasonably anticipated to exceed the program budget, the commissioner shall lower the maximum eligibility level set in paragraph A to the extent necessary to bring the program within the program budget.
(3) If Cub Care program expenditures are reasonably anticipated to fall below the program budget, the commissioner shall raise the maximum eligibility level set in paragraph A to the extent necessary to provide coverage to as many children as possible within the fiscal constraints of the program budget.
(4) The commissioner shall give at least 30 days' notice of the proposed change in maximum eligibility level to the joint standing committee of the Legislature having jurisdiction over appropriations and financial affairs and the joint standing committee of the Legislature having jurisdiction over health and human services matters.
C. All children resident in the State are eligible except a child who:
(1) Is eligible for coverage under the Medicaid program;
(2) Is covered under a group health insurance plan or under health insurance, as defined in Section 2791 of the federal Public Health Service Act, 42 United States Code, Section 300gg(c) (Supp. 1997);
(3) Is a member of a family that is eligible under Title 5, section 285 for health coverage under the state employee health insurance program;
(4) Is an inmate in a public institution or a patient in an institution for mental diseases; or
(5) Within the 3 months prior to application for coverage under the Cub Care program, was insured or otherwise provided coverage under an employer-based health plan for which the employer paid 50% or more of the cost for the child's coverage, except that this subparagraph does not apply if:
(a) The cost to the employee of coverage for the family exceeds 10% of the family's income;
(b) The parent lost coverage for the child because of a change in employment, termination of coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, COBRA, of the Employee Retirement Income Security Act of 1974, as amended, 29 United States Code, Sections 1161 to 1168 (Supp. 1997) or termination for a reason not in the control of the employee; or
(c) The department has determined that grounds exist for a good-cause exception.
D. Notwithstanding changes in the maximum eligibility level determined under paragraph B, the following requirements apply to enrollment and eligibility:
(1) Children must be enrolled for 6-month enrollment periods. Prior to the end of each 6-month enrollment period the department shall redetermine eligibility for continuing coverage; and
(2) Children of higher family income may not be covered unless children of lower family income are also covered. This subparagraph may not be applied to disqualify a child during the 6-month enrollment period. Children of higher income may be disqualified at the end of the 6-month enrollment period if the commissioner has
lowered the maximum eligibility level under paragraph B.
E. Coverage under the Cub Care program may be purchased for children described in subparagraphs (1) and (2) for a period of up to 18 months as provided in this paragraph at a premium level that is revenue neutral and that covers the cost of the benefit and a contribution toward administrative costs no greater than the maximum level allowable under COBRA. The department shall adopt rules to implement this paragraph. The following children are eligible to enroll under this paragraph:
(1) A child who is enrolled under paragraph A or B and whose family income at the end of the child's 6-month enrollment term exceeds the maximum allowable income set in that paragraph; and
(2) A child who is enrolled in the Medicaid program and whose family income exceeds the limits of that program. The department shall terminate Medicaid coverage for a child who enrolls in the Cub Care program under this subparagraph.
3. Program administration; benefit design. With the exception of premium payments under subsection 5 and any other requirements imposed under this section, the Cub Care program must be integrated with the Medicaid program and administered with it in one administrative structure within the department, with the same enrollment and eligibility processes, benefit package and outreach and in compliance with the same laws and policies as the Medicaid program, except when those laws and policies are inconsistent with this section and the Balanced Budget Act of 1997. The department shall adopt and promote a simplified eligibility form and eligibility process.
4. Benefit delivery. The Cub Care program must use, but is not limited to, the same benefit delivery system as the Medicaid program, providing benefits through the same health plans, contracting process and providers. Copayments and deductibles may not be charged for benefits provided under the program.
5. Premium payments. Premiums must be paid in accordance with this subsection.
A. Premiums must be paid at the beginning of each month for coverage for that month according to the following scale:
(1) Families with incomes between 150% and 160% of the nonfarm income official poverty line pay premiums of 5% of the benefit cost per child, but not more than 5% of the cost for 2 children;
(2) Families with incomes between 160% and 170% of the nonfarm income official poverty line pay premiums of 10% of the benefit cost per child, but not more than 10% of the cost for 2 children; and
(3) Families with incomes between 170% and 185% of the nonfarm income official poverty line must pay premiums of 15% of the benefit cost per child, but not more than 15% of the cost for 2 children.
B. When a premium is not paid at the beginning of a month, the department shall give notice of nonpayment at that time and again at the beginning of the 6th month of the 6-month enrollment period if the premium is still unpaid, and the department shall provide an opportunity for a hearing and a grace period in which the premium may be paid and no penalty will apply for the late payment. If a premium is not paid by the end of the grace period, coverage must be terminated unless the department has determined that waiver of premium is appropriate under paragraph D. The grace period is determined according to this paragraph.
(1) If nonpayment is for the first, 2nd, 3rd, 4th or 5th month of the 6-month enrollment period, the grace period is equal to the remainder of the 6-month enrollment period.
(2) If nonpayment is for the 6th month of the 6-month enrollment period, the grace period is equal to 6 weeks.
C. A child whose coverage under the Cub Care program has been terminated for nonpayment of premium and who has received coverage for a month or longer without premium payment may not reenroll until after a waiting period that equals the number of months of coverage under the Cub Care program without premium payment, not to exceed 3 months.
D. The department shall adopt rules allowing waiver of premiums for good cause.
6. Incentives. In the contracting process for the Cub Care program and the Medicaid program, the department shall create incentives to reward health plans that contract with school-based clinics, community health centers and other community-based programs.
7. Administrative costs. The department shall budget 2% of the costs of the Cub Care program for outreach activities. After the first 6 months of the
program and to the extent that the program budget allows, the department may expend up to 3% of the program budget on activities to increase access to health care. Administrative costs must include the cost of staff with experience in health policy administration equal to one full-time equivalent position.
8. Quarterly determination of fiscal status; reports. On a quarterly basis, the commissioner shall determine the fiscal status of the Cub Care program, determine whether an adjustment in maximum eligibility level is required under subsection 2, paragraph B and report to the joint standing committee of the Legislature having jurisdiction over appropriations and financial affairs and the joint standing committee of the Legislature having jurisdiction over health and human services matters on the following matters:
A. Enrollment approvals, denials, terminations, reenrollments, levels and projections. With regard to denials, the department shall gather data from a statistically significant sample and provide information on the income levels of children who are denied eligibility due to family income level;
B. Cub Care program expenditures, expenditure projections and fiscal status;
C. Proposals for increasing or decreasing enrollment consistent with subsection 2, paragraph B;
D. Proposals for enhancing the Cub Care program;
E. Any information the department has from the Cub Care program or from the Bureau of Insurance or the Department of Labor on employer health coverage and insurance coverage for low-income children;
F. The use of and experience with the purchase option under subsection 2, paragraph D; and
G. Cub Care program administrative costs.
9. Provisions applicable to federally recognized Indian tribes. After consultation with federally recognized Indian nations, tribes or bands of Indians in the State, the commissioner shall adopt rules regarding eligibility and participation of children who are members of a nation, tribe or band, consistent with Title 30, section 6211, in order to best achieve the goal of providing access to health care for all qualifying children within program requirements, while using all available federal funds.
10. Rulemaking. The department shall adopt rules in accordance with Title 5, chapter 375 as required to implement this section. Rules adopted pursuant to this subsection are routine technical rules as defined by Title 5, chapter 375, subchapter II-A.
Sec. A-3. Children's Health Reserve Account; lapsed balances. Notwithstanding any other provision of law, $3,382,199 in fiscal year 1998-99, $4,478,437 in fiscal year 1999-2000 and $139,364 in fiscal year 2000-01 from available balances in the Children's Health Reserve Account, Other Special Revenue, established by Public Law 1997, chapter 560, Part C lapse to the General Fund.
Sec. A-4. Legislative intent. It is the intent of the Legislature that the new or expanded programs authorized in this Act be included in the Governor's current services recommendations for the 2000-2001 biennium. If the Governor submits legislation setting forth appropriations and allocations for the new or expanded programs authorized in this Act that differ from the full budget request submitted by the Department of Human Services for the 2000-2001 biennium, the Governor must simultaneously submit a report to the joint standing committee of the Legislature having jurisdiction over appropriations and financial affairs and the joint standing committee of the Legislature having jurisdiction over health and human services matters explaining why the Governor's legislation differs from the Department of Human Services' budget submission.
Sec. A-5. Appropriation. The following funds are appropriated from the General Fund to carry out the purposes of this Act.
1998-99
HUMAN SERVICES, DEPARTMENT OF
Bureau of Family Independence - Regional
Positions - Legislative Count (7.000)
Personal Services $229,299
All Other 56,800
____________
TOTAL $286,099
Provides funds to support the additional eligibility determination costs of extending Medicaid and Cub Care coverage to additional children, including funds for 7 Income Maintenance Specialist positions and related costs.
Bureau of Medical Services
Positions - Legislative Count (1.000)
Personal Services 48,272
All Other 2,500
____________
TOTAL $50,772
Provides funds to support one Social Services Program Manager position and related costs.
Bureau of Medical Services
All Other $77,894
Provides funds to support the state share of outreach costs.
Medical Care - Payments to Providers
All Other $1,166,062
Provides funds for the state share of the costs of expanding Medicaid coverage to children whose family incomes are below 150% of the federal poverty level.
Medical Care - Payments to Providers
All Other $633,589
Provides funds for the state share of the costs associated with the Cub Care program.
Medical Care - Payments to Providers
All Other $1,134,743
Provides funds for the state share of the additional Medicaid benefit costs due to outreach efforts.
OMB Operations - Regional
Positions - Legislative Count (1.000)
Personal Services 25,890
All Other 7,150
____________
TOTAL $33,040
Provides funds to support the additional eligibility determination costs of extending Medicaid coverage to additional children, including funds for one Clerk Typist II position and related costs.
DEPARTMENT OF HUMAN SERVICES ____________
TOTAL $3,382,199
Sec. A-6. Allocation. The following funds are allocated from the Federal Expenditures Fund to carry out the purposes of this Act.
1998-99
HUMAN SERVICES, DEPARTMENT OF
Bureau of Family Independence - Regional
Positions - Legislative Count (6.000)
Personal Services $196,542
All Other 42,900
____________
TOTAL $239,442
Provides funds to support the additional eligibility determination costs of extending Medicaid and Cub Care coverage to additional children, including funds for 6 Income Maintenance Specialist positions and related costs.
Medical Care - Payments to Providers
All Other $2,233,447
Provides funds for the federal share of the additional Medicaid benefit costs due to outreach efforts.
OMB Operations - Regional
Positions - Legislative Count (1.000)
Personal Services $25,890
All Other 7,150
____________
TOTAL $33,040
Provides funds to support the additional eligibility determination costs of extending Medicaid coverage to additional children, including funds for one Clerk Typist II position and related costs.
DEPARTMENT OF HUMAN SERVICES ____________
TOTAL $2,505,929
Sec. A-7. Allocation. The following funds are allocated from the Federal Block Grant Fund to carry out the purposes of this Act.
1998-99
HUMAN SERVICES, DEPARTMENT OF
Bureau of Family Independence - Regional
Positions - Legislative Count (8.000)
Personal Services $262,056
All Other 50,450
____________
TOTAL $312,506
Provides funds to support the additional eligibility determination costs of extending Medicaid and Cub Care coverage to additional children, including funds for 8 Income Maintenance Specialist positions and related costs.
Bureau of Medical Services
All Other $249,803
Provides funds to support the federal share of outreach costs.
Medical Care - Payments to Providers
All Other $3,739,541
Provides funds for the federal share of the costs of expanding Medicaid coverage to children whose family incomes are below 150% of the federal poverty level.
Medical Care - Payments to Providers
All Other $2,031,910
Provides funds for the federal share of the costs associated with the Cub Care program.
DEPARTMENT OF HUMAN SERVICES ____________
TOTAL $6,333,760
Sec. A-8. Retroactivity. Section 3 of this Part applies retroactively to December 15, 1997.
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