HOUSE OF REPRESENTATIVES	H.B. NO.	1416
THIRTY-SECOND LEGISLATURE, 2023		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO MEDICAID.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that to initially qualify and then maintain eligibility for coverage under the med-QUEST program administered by the department of human services, an individual generally cannot have more than $2,000 in liquid assets. If a med-QUEST patient saves over $2,000 in liquid assets, the patient's medical insurance can be suspended. Losing access to health care interferes with an individual's continuity of care, which could force the individual to seek alternate care modalities. The legislature also finds that states that have eliminated asset limits have found that the resulting administrative cost savings significantly outweighed any increase in the number of individuals receiving medicaid benefits.

The legislature further finds that asset limit requirements were established as a safeguard to ensure medicaid's availability to those truly in need of assistance. When medicaid was expanded under the Patient Protection and Affordable Care Act, the federal requirements for asset limits were removed.

The legislature additionally finds that removing liquid asset limits would decrease the amount of time that staff at the department of human services need to spend reviewing med-QUEST applications, such as verifying bank account balances and the cash value of life insurance policies, and would lead to faster delivery of assistance to those who need it.

Moreover, the legislature finds that limits on liquid assets work to hold back struggling residents and families by discouraging them from increasing their savings; forcing them to sacrifice long-term economic security and mobility; and preventing them from building a financial safety net for themselves when they fall on hard times.

In addition, the legislature finds that asset limits can also prevent middle-income families from seeking needed assistance in the event of an unexpected economic downturn. Savings help protect against unforeseen expenses. Without sufficient savings, individuals who encounter a financial setback may face eviction, be forced to skip meals or medication, be unable to repair their vehicle, or experience having their electrical service ended.

The legislature further finds that removing the liquid asset limit for med-QUEST eligibility would help recipients develop a financial safety net and attain greater economic independence.

Therefore, the purpose of this Act is to require the department of human services to adopt rules, contingent on the approval of the Hawaii state plan amendment by the Centers for Medicare and Medicaid Services, to remove the $2,000-per-individual asset limit for eligibility for assistance under the med-QUEST program.

SECTION 2. (a) By January 1, 2025, the department of human services shall, contingent on the approval of the Hawaii state plan amendment by the Centers for Medicare and Medicaid Services, adopt rules pursuant to chapter 91, Hawaii Revised Statutes, to remove the $2,000-per-individual asset limit for eligibility for assistance under the med-QUEST program.

(b) No later than twenty days before the convening of the regular session of 2026, the department of human services shall submit to the legislature a report regarding the effects of the removal of the $2,000-per-individual asset limit for eligibility for assistance under the med-QUEST program, including:

(1) Whether there has been a significant increase in the number of individuals applying and qualifying for medical assistance under the med-QUEST program;

(2) Whether the administrative cost savings significantly outweigh any increase in the number of individuals receiving med-QUEST benefits; and

(3) Any other benefits or detriments of removing the asset limit.

SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 4. This Act shall take effect on June 30, 3000.

Report Title:

Med-QUEST; DHS; Eligibility; Asset Limit; Elimination

Description:

Requires the department of human services to adopt rules, contingent on the approval of the Hawaii state plan amendment by the Centers for Medicare and Medicaid Services, to remove the $2,000-per-individual asset limit for eligibility for assistance under the med-QUEST program. Requires a report to legislature. Effective 6/30/3000. (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.