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House approves electronic income verification for Medicaid and a bid-based Medicaid dental pilot

Utah House of Representatives · February 22, 2011
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Summary

First substitute HB 256, approved 69-0, allows eligibility workers to verify applicants’ income and assets electronically with applicant authorization and authorizes a move toward managed-care procurement for Medicaid dental benefits to improve access and control costs.

Representative Dunnigan described first substitute House Bill 256 as a two-part bill: (1) at an applicant's authorization, allow eligibility caseworkers to request income verification electronically from the Tax Commission to speed determinations and reduce fraud; and (2) allow the Health Department to solicit private-sector bids to administer Medicaid dental benefits under managed care.

"At the applicant's authorization, the eligibility caseworker [can] send a request to the tax commission and just to verify income electronically," Dunnigan said, noting the method is voluntary and is intended to reduce paperwork and error. He said the system is already used by federal programs and the Office of Recovery Services, and federal pilots showed fraud reductions (a 7% savings figure for an SSI pilot was cited during floor remarks).

An amendment (Amendment 1) clarified that a simplified enrollment renewal process must be implemented no later than July of that year. Dunnigan argued the managed-care approach for dental would create provider networks and improve access for Medicaid enrollees, who currently face limited participating dentists under fee-for-service.

The House adopted the amendment and passed the first substitute to HB 256 69-0; the bill will be transmitted to the Senate.