DAR File No. 42487

Health, Health Care Financing, Coverage and Reimbursement Policy

Section R414-302-6

Residents of Institutions

Notice of 120-Day (Emergency) Rule

DAR File No.: 42487
Filed: 01/19/2018 09:44:32 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this emergency rule is to comply with the provisions of H.B. 437 passed during the 2016 General Session, which requires the Department of Health (Department) to expand Medicaid coverage to individuals who reside in certain institutions for mental diseases (IMDs).

Summary of the rule or change:

This change expands Medicaid coverage to individuals who reside in an IMD licensed as a Substance Use Disorder (SUD) residential treatment program.

Emergency rule reason and justification:

Regular rulemaking procedures would cause an imminent peril to the public health, safety, or welfare.

Justification: This emergency rule is necessary to treat residents in IMDs who suffer from the opioid epidemic and other SUDs in accordance with H.B 437 (2016) and the Medicaid Expansion Waiver.

Statutory or constitutional authorization for this rule:

• 42 CFR 435.1009
• Section 26-1-5
• Section 26-18-3

Anticipated cost or savings to:

the state budget:

There is an annual cost of about $3,000,000 in state funds and about $7,000,000 in federal funds to treat individuals who reside in an IMD licensed for SUD treatment purposes.

local governments:

There is no impact on local governments because they do not fund IMDs under the Medicaid program.

small businesses:

Institutions for SUD treatment may see a portion of annual revenue that totals $10,000,000 based on 241 beds available to treat residents under expanded Medicaid coverage.

persons other than small businesses, businesses, or local governmental entities:

Medicaid providers in institutions for SUD treatment may see a portion of annual revenue that totals $10,000,000 based on 241 beds available to treat residents under expanded Medicaid coverage. Residents who qualify for treatment coverage will also see a portion of $10,000,000 in out-of-pocket-savings.

Compliance costs for affected persons:

There are no compliance costs because a single institution for SUD treatment will only see potential revenue, and a resident who qualifies for SUD treatment will only see out-of-pocket savings.

Comments by the department head on the fiscal impact the rule may have on businesses:

Institutions for SUD treatment may see a portion of annual revenue that totals $10,000,000 based on 241 beds available to treat residents under expanded Medicaid coverage.

Joseph K. Miner, MD, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Health
Health Care Financing, Coverage and Reimbursement Policy
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 cdevashrayee@utah.gov

This rule is effective on:

01/19/2018

Authorized by:

Joseph Miner, Executive Director

Appendix 1: Regulatory Impact Summary Table*

Fiscal Costs	FY 2018	FY 2019	FY 2020
State Government	$10,000,000	$10,000,000	$10,000,000
Local Government	$0	$0	$0
Small Businesses	$0	$0	$0
Non-Small Businesses	$0	$0	$0
Other Person	$0	$0	$0
Total Fiscal Costs:	$10,000,000	$10,000,000	$10,000,000
Fiscal Benefits
State Government	$0	$0	$0
Local Government	$0	$0	$0
Small Businesses	A portion of $10,000,000	A portion of 10,000,000	A portion of 10,000,000
Non-Small Businesses	A portion of $10,000,000	A portion of 10,000,000	A portion of 10,000,000
Other Persons	A portion of $10,000,000	A portion of 10,000,000	A portion of 10,000,000
Total Fiscal Benefits:	$10,000,000	$10,000,00 0	$10,000,000
Net Fiscal Benefits:	Portions of $10,000,000	Portions of 10,000,000	Portions of 10,000,000

 

*This table only includes fiscal impacts that could be measured. If there are inestimable fiscal impacts, they will not be included in this table. Inestimable impacts for State Government, Local Government, Small Businesses and Other Persons are described above. Inestimable impacts for Non - Small Businesses are described below.

 

Appendix 2: Regulatory Impact to Non - Small Businesses

Institutions for Substance Use Disorder (SUD) treatment may see a portion of annual revenue that totals $10,000,000,based on 241 beds available to treat residents under expanded Medicaid coverage.

 

The Executive Director of the Department of Health, Joseph K. Miner, M.D., has reviewed and approved this fiscal analysis.

 

 

R414. Health, Health Care Financing, Coverage and Reimbursement Policy.

R414-302. Eligibility Requirements.

R414-302-6. Residents of Institutions.

(1) [The Department provides Medicaid coverage to individuals who are residents of institutions subject to the limitations in 42 CFR 435.1009 and 435.1010 (October 1, 2015), which the Department adopts and incorporates by reference]For purposes of institutions, the definitions in 42 CFR 435.1010 apply.

(2) An individual who resides in a halfway house may receive Medicaid coverage if the halfway house meets the following criteria:

(a) The halfway house allows the individual to work outside the facility;

(b) The halfway house allows the individual to use community facilities at will, such as libraries, grocery stores, recreation areas, or schools; and

(c) The halfway house allows the individual to seek health care treatment in the community to the same extent as other Medicaid enrollees.

(3) The Department does not consider an individual who resides in a temporary shelter for a limited period of time as a resident of an institution.

(4) [For individuals under 22 years of age who become residents of an IMD before reaching 21 years of age, the Department limits Medicaid eligibility to individuals residing in the Utah State Hospital.]Individuals who are inmates of public institutions are not eligible for Medicaid coverage.

(5) Individuals who reside in an institution for mental disease (IMD) are not eligible for Medicaid coverage with the following exceptions:

(a) Individuals 65 years of age or older;

(b) Individuals under 22 years of age who receive inpatient psychiatric services as described in 42 CFR 440.160; and

(c) Individuals who reside in an IMD that is licensed as a Substance Use Disorder (SUD) residential treatment program and are receiving treatment for an SUD.

 

KEY: state residency, citizenship, third party liability, Medicaid

Date of Enactment or Last Substantive Amendment: January 19, 2018

Notice of Continuation: January 8, 2018

Authorizing, and Implemented or Interpreted Law: 26-18-3