DAR File No. 38400
This rule was published in the April 15, 2014, issue (Vol. 2014, No. 8) of the Utah State Bulletin.
Health, Children's Health Insurance Program
Notice of Proposed Rule
DAR File No.: 38400
Filed: 04/01/2014 02:42:29 PM
Purpose of the rule or reason for the change:
The purpose of this change is to clarify the household composition for non-tax filers using Modified Adjusted Gross Income (MAGI) methodology, and to clarify when cash support payments are counted as income.
Summary of the rule or change:
This amendment clarifies that a dependent child or an eligible child's sibling who is age 19 or 20 and a full-time student is also included in the Children's Health Insurance Program (CHIP) household size of those individuals whose household composition is based upon non-tax filer MAGI rules. This change also clarifies criteria for when a cash support payment is to be counted as income, updates references in the text, and makes other technical changes.
State statutory or constitutional authorization for this rule:
- Section 26-1-5
- Pub. L. No. 111-148
- Section 26-18-3
This rule or change incorporates by reference the following material:
- Updates 42 CFR 457.340, published by Government Printing Office, 10/01/2013
- Updates 42 CFR 457.350, published by Government Printing Office, 10/01/2013
- Updates 42 CFR 457.805(b), published by Government Printing Office, 10/01/2013
Anticipated cost or savings to:
the state budget:
There is no impact to the state budget because this change only clarifies ongoing eligibility policy for CHIP.
There is no impact to local governments because they neither fund nor provide CHIP services to CHIP recipients.
There is no impact to small businesses because this change only clarifies ongoing eligibility policy for CHIP.
persons other than small businesses, businesses, or local governmental entities:
There is no impact to CHIP providers and to CHIP recipients because this change only clarifies ongoing eligibility policy for CHIP.
Compliance costs for affected persons:
There is no impact to a single CHIP provider or to a CHIP recipient because this change only clarifies ongoing eligibility policy for CHIP.
Comments by the department head on the fiscal impact the rule may have on businesses:
No impact on business as this rule makes no change in current practices.
David Patton, PhD, Executive Director
The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:Health
Children's Health Insurance Program
CANNON HEALTH BLDG
288 N 1460 W
SALT LAKE CITY, UT 84116-3231
Direct questions regarding this rule to:
- Craig Devashrayee at the above address, by phone at 801-538-6641, by FAX at 801-538-6099, or by Internet E-mail at email@example.com
Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:
This rule may become effective on:
David Patton, Executive Director
R382. Health, Children's Health Insurance Program.
(1) The Department adopts and incorporates by reference the definitions found in Sections 2110(b) and (c) of the Compilation of Social Security Laws, in effect January 1, 2013.
(2) The Department adopts the definitions in Section R382-1-2. In addition, the Department adopts the following definitions:
(a) "American Indian or Alaska Native" means someone having origins in any of the original peoples of North and South America (including Central America) and who maintains tribal affiliation or community attachment.
(b) "Best estimate" means the eligibility agency's determination of a household's income for the upcoming eligibility period, based on past and current circumstances and anticipated future changes.
(c) "Children's Health Insurance Program" (CHIP) means the program for benefits under the Utah Children's Health Insurance Act, Title 26, Chapter 40.
(d) "Co-payment and co-insurance" means a portion of the cost for a medical service for which the enrollee is responsible to pay for services received under CHIP.
(e) "Due process month" means the month that allows time for the enrollee to return all verification, and for the eligibility agency to determine eligibility and notify the enrollee.
(f) "Eligibility agency" means the Department of Workforce Services (DWS) that determines eligibility for CHIP under contract with the Department.
(g) "Employer-sponsored health
that meets the requirements of Subsection
(h) "Federally Facilitated Marketplace" (FFM) means the entity individuals can access to enroll in health insurance and apply for assistance from insurance affordability programs such as Advanced Premium Tax Credits, Medicaid and CHIP.
(i) "Income annualizing" means a process of
determining the average annual income of a household, based on the
past history of income and expected changes. (j) "Income anticipating" means a process of
using current facts regarding rate of pay, number of working
hours, and expected changes to anticipate future income.
(k) "Income averaging" means a process of using
a history of past or current income and averaging it over a
determined period of time that is representative of future
l]) "Modified Adjusted Gross Income" (MAGI) means
the income determined using the methodology defined in 42 CFR
m]) "Presumptive eligibility" means a period of
time during which a child may receive CHIP benefits based on
preliminary information that the child meets the eligibility
n]) "Quarterly Premium" means a payment that
enrollees must pay every three months to receive coverage under
o]) "Review month" means the last month of the
eligibility certification period for an enrollee during which the
eligibility agency [ re]determines an enrollee's eligibility for a
new certification period.
p]) "Utah's Premium Partnership for Health
Insurance" or "UPP" means the program described in
(q) "Verification" means the proof needed to
determine whether a child meets the eligibility criteria to be
enrolled in the program. Verification may include documents in
paper format, electronic records from computer match systems, and
collateral contacts with third parties who have information needed
to determine the eligibility of a child.
R382-10-10. Creditable Health Coverage.
(1) To be eligible for enrollment in the program, a child must meet the requirements of Sections 2110(b) of the Compilation of Social Security Laws.
(2) A child who is covered under a group health plan or other health insurance that provides coverage in Utah, including coverage under a parent's or legal guardian's employer, as defined in 29 CFR 2590.701-4, July 1, 2013 ed., is not eligible for CHIP assistance.
(a) A child who is covered under health insurance that does
not provide coverage in the State of Utah is eligible for
b]) A child who has access to health insurance coverage,
where the cost to enroll the child in the least expensive plan
offered by the employer is less than 5% of the countable MAGI-based
income for the individual, is not eligible for CHIP. The child is
considered to have access to coverage even when the employer only
offers coverage during an open enrollment period, and the child has
had at least one chance to enroll.
3]) An eligible child who has access to an employer-sponsored
health plan may choose to enroll in
either CHIP or [
the employer-sponsored health plan].
If the child chooses to enroll in the employer-sponsored
health plan, the child may enroll in and receive premium
reimbursement through the UPP program if enrollment is not closed.
The health plan must meet the following conditions: (i) The cost of the least expensive plan equals or
exceeds 5% of the countable MAGI-based income for the individual;
(ii) The plan meets the requirements of Subsection
The cost of coverage includes a deductible if the employer
plan has a deductible that must be met before the plan will pay any
claims. For a dependent child, if the employee must enroll to
enroll the dependent child, the cost of coverage will include the
cost to enroll the employee and the dependent child. (c) If the child enrolls in the employer-sponsored health
plan or COBRA coverage and UPP, but the plan does not include
dental benefits, the child may receive dental-only benefits
through CHIP. If the employer-sponsored health plan includes
dental, the applicant may choose to enroll the child in the
dental plan and receive an additional reimbursement from UPP of
up to $20 per month, or may choose not to enroll the child in the
dental plan and receive dental-only benefits through
(d) A child who chooses to enroll in the employer-sponsored
health plan or COBRA coverage and UPP may discontinue the
employer-sponsored health plan or COBRA coverage and switch to CHIP
coverage at any time without a 90-day ineligibility period for
voluntarily discontinuing health insurance. Eligibility continues
through the current certification period without a new eligibility
4]) Subject to the provisions published in
[ 78 FR 42313], which the Department adopts and
incorporates by reference, the eligibility agency shall deny
eligibility and impose a 90-day waiting period for enrollment under
CHIP if the applicant or a custodial parent voluntarily terminates
health insurance that provides coverage in Utah within the 90 days
before the application date[ for enrollment under CHIP]. In addition, the
agency may not apply a 90-day waiting period in the following
(a) a non-custodial parent voluntarily terminates coverage;
(b) the child is voluntarily terminated from insurance that does not provide coverage in Utah;
(c) the child is voluntarily terminated from a limited health insurance plan;
(d) a child is terminated from a custodial
parent's insurance because ORS reverses the forced enrollment
5]) If the 90-day ineligibility period for CHIP ends in the
month of application, or by the end of the month that follows, the
eligibility agency shall determine the applicant's
(a) If eligible, enrollment in CHIP begins the day after the 90-day ineligibility period ends.
(b) If the 90-day ineligibility period does not end by the end of the month that follows the application month, the eligibility agency shall deny CHIP eligibility.
6]) The Department shall comply with the provisions of
enrollment after the waiting period in accordance with
[ 78 FR 42312], which the Department adopts and
incorporates by reference.
(7) If an applicant or an applicant's parent
voluntarily terminates coverage under a Consolidated Omnibus Budget
Reconciliation Act (COBRA) plan or under the Health Insurance Pool
(HIP), or if an applicant is involuntarily terminated from an
employer's plan, the applicant is eligible for CHIP without a
90-day ineligibility period.
8]) A child with creditable health coverage operated or
financed by [
the]Indian Health Services is not excluded from
(9) An applicant must report at application and review
whether any of the children in the household for whom enrollment is
being requested have access to or are covered by a group health
plan, other health insurance coverage, or a state employee's
health benefits plan. (10) The eligibility agency shall deny an application or
review if the enrollee fails to respond to questions about health
insurance coverage for children that the household seeks to
enroll or renew in the program.
(11) A recipient must report when a child enrolls in
health insurance coverage within ten calendar days of the date of
enrollment or the date that benefits are effective, whichever is
later. The eligibility agency shall end eligibility effective the
end of the month in which the agency sends proper notice of the
closure. A child may switch to UPP in accordance with Subsection
R382-10-10(3) if the change is reported timely. Failure to make a
timely report may result in overpayment.
R382-10-11. Household Composition and Income Provisions.
(1) The Department adopts and incorporates by reference, 42 CFR 457.315, October 1, 2012 ed., regarding the household composition and income methodology to determine eligibility for CHIP.
(2) Any individual described in Subsection R382-10-11(1) who is temporarily absent solely by reason of employment, school, training, military service, or medical treatment, or who will return home to live within 30 days from the date of application, is part of the household.
(3) The household size includes the number of unborn children that a pregnant household member expects to deliver.
(4) The eligibility agency
counts children who are 19 or 20 years old and are
full-time students in the household size of individuals whose
household size is determined under the non-tax filer rules
found] in 42 CFR 435.603(f)(3).
(5) The eligibility agency may not count as income any payments from sources that federal law specifically prohibits from being counted as income to determine eligibility for federally-funded programs.
(6) The eligibility agency may not count as income any payments that an individual receives pursuant to the Individual Indian Money Account Litigation Settlement under the Claims Resettlement Act of 2010, Pub. L. No. 111 291, 124 Stat. 3064.
(7) The eligibility agency
s] as income[ ,] cash support received
[ from a tax filer who claims the individual as a tax
dependent when that dependent is not the spouse or child of the tax
filer, but only the amount that exceeds a minimal amount set by the
(8) The eligibility agency determines
eligibility by deducting an amount equal to 5% of the federal
for the applicable household size from the MAGI-based
household income determined for the individual].
(1) The eligibility agency determines countable household income according to MAGI-based methodology as required by 42 CFR 457.315.
(2) The eligibility agency shall determine a child's eligibility and cost sharing requirements prospectively for the upcoming eligibility period at the time of application and at each renewal for continuing eligibility.
(a) The eligibility agency determines prospective eligibility by using the best estimate of the household's average monthly income expected to be received or made available to the household during the upcoming eligibility period.
(b) The eligibility agency shall include in its estimate, reasonably predictable income changes such as seasonal income or contract income, to determine the average monthly income expected to be received during the certification period.
(c) The eligibility agency prorates income that is received less often than monthly over the eligibility period to determine an average monthly income.
(3) Methods of determining the best estimate are income averaging, income anticipating, and income annualizing. The eligibility agency may use a combination of methods to obtain the most accurate best estimate. The best estimate may be a monthly amount that is expected to be received each month of the eligibility period, or an annual amount that is prorated over the eligibility period. Different methods may be used for different types of income received in the same household.
(4) The eligibility agency determines farm and self-employment income by using the individual's recent tax return forms or other verifications the individual can provide. If tax returns are not available, or are not reflective of the individual's current farm or self-employment income, the eligibility agency may request income information from a recent time period during which the individual had farm or self-employment income. The eligibility agency deducts the same expenses from gross income that the Internal Revenue Service allows as self-employment expenses to determine net self-employment income.
R382-10-15. Application and Eligibility Reviews.
(1) The Department adopts and incorporates
78 FR 42312. The Department also adopts and incorporates by
reference] 42 CFR 457.330,
457.343, and 457.348, October 1, [ 2012] ed.
(2) The provisions of Section R414-308-3 apply to applicants for CHIP, except for Subsection R414-308-3(10) and the three months of retroactive coverage.
(3) Individuals can apply without having an interview. The eligibility agency may interview applicants and enrollee's, the parents or spouse, and any adult who assumes responsibility for the care or supervision of the child, when necessary to resolve discrepancies or to gather information that cannot be obtained otherwise.
(4) According to the provisions of Section 2105(a)(4)(F) of the Social Security Act, the Department provides medical assistance during a presumptive eligibility period to a child if a Medicaid eligibility worker with the Department of Human Services has determined, based on preliminary information, that:
(a) the child meets citizenship or alien status criteria as defined in Section R414-302-3;
(b) the child is not enrolled in a health insurance plan; and
(c) the child's household income exceeds the applicable income limit for Medicaid, but does not exceed 200% of the federal poverty level for the applicable household size.
(5) A child determined presumptively eligible is required to file an application for medical assistance with the eligibility agency in accordance with the requirements of Section 1920A of the Social Security Act.
(6) A child may receive medical assistance during only one presumptive eligibility period in any six month period.
(7) The eligibility agency shall complete a periodic review of an enrollee's eligibility for CHIP medical assistance in accordance with the requirements of 42 CFR 457.343.
(8) If an enrollee fails to respond to a request for information to complete the review during the review month, the agency shall end the enrollee's eligibility effective at the end of the review month and send proper notice to the enrollee.
(a) If the enrollee responds to the review or reapplies within three calendar months of the review closure date, the eligibility agency shall treat the response as a new application without requiring the enrollee to reapply. The application processing period then applies for this new request for coverage.
(b) If the enrollee is determined eligible based on this reapplication, the new certification period begins the first day of the month in which the enrollee contacts the agency to complete the review if verification is provided within the application processing period. The four day grace period may apply. If the enrollee fails to return verification within the application processing period, or if the enrollee is determined ineligible, the eligibility agency shall send a denial notice to the enrollee.
(c) The eligibility agency may not continue eligibility while it makes a new eligibility determination.
(9) Except as defined in R382-10-15(8), the enrollee must reapply for CHIP if the enrollee's case is closed for one or more calendar months.
(10) If the eligibility agency sends proper notice of an adverse decision during the review month, the agency shall change eligibility for the month that follows.
(11) If the eligibility agency does not send proper notice of an adverse change for the month that follows, the agency shall extend eligibility to that month. The eligibility agency shall send proper notice of the effective date of an adverse decision. The enrollee does not owe a premium for the due process month.
(12) If the enrollee responds to the review in the review month and the verification due date is in the month that follows, the eligibility agency shall extend eligibility to the month that follows. The enrollee must provide all verification by the verification due date.
(a) If the enrollee provides all requested verification by the verification due date, the eligibility agency shall determine eligibility and send proper notice of the decision.
(b) If the enrollee does not provide all requested verification by the verification due date, the eligibility agency shall end eligibility effective at the end of the month in which the eligibility agency sends proper notice of the closure.
(c) If the enrollee returns all verification after the verification due date and before the effective closure date, the eligibility agency shall treat the date that it receives all verification as a new application date. The eligibility agency shall determine eligibility and send a notice to the enrollee.
(d) The eligibility agency may not continue eligibility while it determines eligibility. The new certification date for the application is the day after the effective closure date if the enrollee is found eligible.
(13) The eligibility agency shall provide ten-day notice of case closure if the enrollee is determined to be ineligible or if the enrollee fails to provide verification by the verification due date.
(14) If eligibility for CHIP enrollment ends, the eligibility agency shall review the case for eligibility under any other medical assistance program without requiring a new application. The eligibility agency may request additional verification from the household if there is insufficient information to make a determination.
R382-10-16. Eligibility Decisions.
(1) The Department adopts and incorporates
78 FR 42312], regarding eligibility screening.
(2) The eligibility agency shall determine eligibility for CHIP within 30 days of the date of application. If the eligibility agency cannot make a decision in 30 days because the applicant fails to take a required action and requests additional time to complete the application process, or if circumstances beyond the eligibility agency's control delay the eligibility decision, the eligibility agency shall document the reason for the delay in the case record.
(3) If a child made presumptively eligible files an application for medical assistance in accordance with the requirements of Section 1920A of the Social Security Act, presumptive eligibility continues only until the eligibility agency makes an eligibility decision based on that application. Filing additional applications does not extend the presumptive eligibility period.
(4) The eligibility agency may not use the time standard as a waiting period before determining eligibility, or as a reason for denying eligibility when the agency does not determine eligibility within that time.
(5) The eligibility agency shall complete a determination of eligibility or ineligibility for each application unless:
(a) the applicant voluntarily withdraws the application and the eligibility agency sends a notice to the applicant to confirm the withdrawal;
(b) the applicant died; or
(c) the applicant cannot be located or does not respond to requests for information within the 30-day application period.
(6) The eligibility agency shall redetermine eligibility every 12 months.
(7) At application and review, the eligibility agency shall determine if any child applying for CHIP enrollment is eligible for coverage under Medicaid.
(a) A child who is eligible for Medicaid coverage is not eligible for CHIP.
(b) An eligible child who must meet a spenddown to receive Medicaid and chooses not to meet the spenddown may enroll in CHIP.
(8) If an enrollee asks for a new income determination during the CHIP certification period and the eligibility agency finds the child is eligible for Medicaid, the agency shall end CHIP coverage and enroll the child in Medicaid.
R382-10-19. Quarterly Premiums.
(1) Each family with children enrolled in the CHIP program must pay a quarterly premium based on the countable income of the family during the first month of the quarter.
A family whose countable income is equal to or less than
100% of the federal poverty level or] who [ are] American Indian or Alaska Native[ pays no premium].
(b) A family with countable income [
greater than 100% and ]up to 150% of the federal
poverty level must pay a quarterly premium of $30.
(c) A family with countable income greater than 150% and up to 200% of the federal poverty level must pay a quarterly premium of $75.
(d) The agency shall charge the family the lowest premium amount when the family has two or more children, and those children qualify for different quarterly premium amounts.
(2) The eligibility agency shall end CHIP coverage and assess a $15 late fee to a family who does not pay its quarterly premium by the premium due date.
(3) The agency may reinstate coverage if the family pays the premium and the late fee by the last day of the month immediately following the termination.
(4) A child is ineligible for CHIP for three months if CHIP is terminated for failure to pay the quarterly premium. The child must reapply at the end of the three months. If eligible, the agency shall approve eligibility without payment of the past due premiums or late fee.
(5) The eligibility agency may not charge the household a premium during a due process month associated with the periodic eligibility review.
(6) The eligibility agency shall assess premiums that are payable each quarter for each month of eligibility.
KEY: children's health benefits
Date of Enactment or Last Substantive Amendment: [
January 1, ]2014
Notice of Continuation: May 9, 2013
Authorizing, and Implemented or Interpreted Law: 26-1-5; 26-40
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For questions regarding the content or application of this rule, please contact Craig Devashrayee at the above address, by phone at 801-538-6641, by FAX at 801-538-6099, or by Internet E-mail at firstname.lastname@example.org. For questions about the rulemaking process, please contact the Division of Administrative Rules.