H.F. 2275 Section 1. MEDICAL ASSISTANCE PROGRAM —— ASSET, INCOME, AND 1 IDENTITY VERIFICATION. 2 1. The department of human services shall contract with 3 a third-party vendor to develop and implement procedures 4 for verifying the income, assets, and identity of medical 5 assistance program applicants and recipients, whose eligibility 6 for medical assistance is based upon the applicant’s or 7 recipient’s age, blindness, or disability, to prevent 8 fraud, misrepresentation, and inadequate documentation when 9 determining an applicant’s eligibility for assistance prior 10 to the distribution of benefits and during eligibility 11 redeterminations and reviews. The procedures developed shall 12 ensure that the verifications apply to every case. Each 13 verification shall include utilization of the asset, income, 14 and identity verification system established under this 15 section. 16 2. The department of human services shall contract with 17 a third-party vendor to establish a computerized asset, 18 income, and identity eligibility verification system to 19 complete the eligibility determinations, redeterminations, 20 and reviews specified in subsection 1. The vendor shall be 21 able to demonstrate access to a current financial institution 22 network representing at least ninety percent of the financial 23 institutions in the state and nationally. Unless a financial 24 institution enters into an agreement with the department 25 under this section, provision of account balances for asset 26 verification by a financial institution shall remain voluntary. 27 3. As a condition of awarding or continuing assistance under 28 the medical assistance program, the department shall verify 29 the name, date of birth, and social security number of each 30 applicant and recipient as specified in subsection 1 against 31 the following public records: 32 a. A nationwide public records data source of physical 33 asset ownership such as real property, automobiles, watercraft, 34 aircraft, and luxury vehicles. 35 -1- LSB 5677HV (2) 85 pf/nh 1/ 6

H.F. 2275 b. A nationwide public records data source of incarcerated 1 individuals. 2 c. A comprehensive public records database that identifies 3 potential identity fraud or identity theft that can closely 4 associate name, social security number, date of birth, 5 telephone, and address information. 6 4. Pursuant to 42 U.S.C. §1396w, the director of 7 human services shall enter into agreements with financial 8 institutions in this state to operate the financial record 9 matching program applicable to applicants for or recipients of 10 medical assistance whose eligibility for medical assistance 11 is based upon the applicant’s or recipient’s age, blindness, 12 or disability for the purpose of verifying the assets of 13 the applicant or recipient. Financial institutions are not 14 required to enter into agreements with the department under 15 this section. Under the financial record matching program, 16 and with the authorization of the applicant for or recipient 17 of medical assistance, the department of human services may 18 request and receive from any financial institution doing 19 business in this state or nationally that has entered into an 20 agreement with the department under this section, the financial 21 records of the applicant or recipient. Within fifteen days 22 of the department’s request, the department shall collect 23 the current account balance information for open and closed 24 accounts for a period of up to the sixty previous months. The 25 department shall systematically canvass financial institutions 26 nationally, regionally, and locally. 27 a. The department of human services or any financial 28 institution that discloses financial records under this 29 subsection shall not be subject to civil liability or criminal 30 prosecution which is based upon its disclosure under this 31 section, or for any other action taken in reasonably good faith 32 to comply with the requirements of this section. 33 b. Any records established or information collected 34 pursuant to the provisions of this subsection shall be made 35 -2- LSB 5677HV (2) 85 pf/nh 2/ 6

H.F. 2275 available only to the director of human services or the 1 director’s designee, the applicant or recipient, and the 2 applicant’s or recipient’s authorized representative as 3 provided by the rules of the department. Such records and 4 information shall be available and used only for purposes 5 directly connected with the determination and verification 6 of eligibility for medical assistance for applicants and 7 recipients whose eligibility for medical assistance is 8 based upon the applicant’s or recipient’s age, blindness, or 9 disability. The records and information made available to 10 the applicant or recipient, or the applicant’s or recipient’s 11 authorized representative shall not include information 12 provided to the department that is prohibited from release by 13 federal or state law or under contract or agreement between the 14 department and another entity if such contract or agreement 15 prohibits release of such information. 16 5. The department of human services shall provide a status 17 report regarding the implementation of this Act six months 18 after the date of implementation to the governor and the 19 general assembly. The report shall summarize the department’s 20 time and labor associated with implementation of this Act, 21 the feedback and reactions of applicants and recipients, any 22 barriers to implementation that were overcome, anticipated 23 future actions, and the department’s assessment of the relative 24 success of the implementation. 25 6. As used in this section, “financial institution” means 26 financial institution as defined in 12 U.S.C. §3401. 27 7. If an applicant for or recipient of medical assistance 28 who is eligible on the basis of age, blindness, or disability 29 refuses to provide or revokes any authorization to the 30 department of human services to have access to the individual’s 31 asset, income, and identity records as provided in this 32 section, the department may, on that basis, deny or terminate 33 eligibility for medical assistance. 34 8. The department of human services shall adopt rules 35 -3- LSB 5677HV (2) 85 pf/nh 3/ 6

H.F. 2275 pursuant to chapter 17A to administer this section. 1 EXPLANATION 2 The inclusion of this explanation does not constitute agreement with 3 the explanation’s substance by the members of the general assembly. 4 This bill relates to asset, income, and identity 5 verification for medical assistance applicants and recipients 6 who are eligible based upon age, blindness, or disability. 7 The bill directs the department of human services (DHS) to 8 contract with a third-party vendor to develop and implement 9 procedures for verifying the income, assets, and identity of 10 medical assistance program applicants and recipients who are 11 eligible based upon their age, blindness, or disability to 12 prevent fraud, misrepresentation, and inadequate documentation 13 when determining an applicant’s eligibility for assistance 14 prior to the distribution of benefits and during eligibility 15 redeterminations and reviews. Each verification is required 16 to include utilization of the asset, income, and identity 17 verification system to be established under the bill. DHS is 18 directed to contract with a third-party vendor to establish 19 a computerized asset, income, and identity eligibility 20 verification system. The vendor must demonstrate access to a 21 current financial institution network representing at least 22 90 percent of the financial institutions in the state and 23 nationally. 24 As a condition of awarding or continuing assistance under 25 the medical assistance program, DHS is required to verify 26 the name, date of birth, and social security number of each 27 applicant and recipient whose eligibility is based on age, 28 blindness, or disability against certain public records 29 specified in the bill. 30 The bill directs DHS to enter into agreements with financial 31 institutions in the state to operate the financial record 32 matching program as required under federal law. Under such 33 program, and with the authorization of the applicant or 34 recipient, DHS may request and receive from any financial 35 -4- LSB 5677HV (2) 85 pf/nh 4/ 6

H.F. 2275 institution doing business in this state or nationally 1 the financial records of any applicant for or recipient of 2 medical assistance whose eligibility for medical assistance is 3 based upon the applicant’s or recipient’s age, blindness, or 4 disability. Financial institutions are not required to enter 5 into agreements with DHS under the bill. DHS must, within 6 15 days of the request, collect the current account balance 7 information for open and closed accounts for a period of up 8 to the 60 previous months. DHS must systematically canvass 9 financial institutions nationally, regionally, and locally. 10 The bill provides for immunity from civil liability and 11 criminal prosecution for DHS and any financial institution 12 that discloses financial records under the bill or for any 13 other action taken in reasonably good faith to comply with the 14 requirements of the bill. 15 Any records established or information collected under the 16 bill are only available to the director of human services 17 or the director’s designee, the applicant or recipient, and 18 the applicant’s or recipient’s authorized representative as 19 provided by the rules of the department. The records and 20 information are to be available and used only for purposes 21 directly connected with the determination and verification 22 of eligibility for medical assistance for applicants and 23 recipients whose eligibility for medical assistance is 24 based upon the applicant’s or recipient’s age, blindness, or 25 disability. The records and information made available to 26 the applicant or recipient, or the applicant’s or recipient’s 27 authorized representative, shall not include information 28 provided to the department that is prohibited from release by 29 federal or state law or under contract or agreement between the 30 department and another entity if such contract or agreement 31 prohibits release of such information. 32 DHS is directed to provide a status report to the governor 33 and the general assembly regarding the implementation of the 34 bill six months after the date of implementation. The report 35 -5- LSB 5677HV (2) 85 pf/nh 5/ 6

H.F. 2275 shall summarize the department’s time and labor associated 1 with implementation of the bill, the feedback and reactions of 2 applicants and recipients, any barriers to implementation that 3 were overcome, anticipated future actions, and the department’s 4 assessment of the relative success of the implementation. 5 Under the bill, an individual who is an applicant for or 6 recipient of medical assistance based on the individual’s 7 age, blindness, or disability who refuses or revokes an 8 authorization required in the bill may be subject to denial or 9 termination of eligibility. 10 The bill directs DHS to adopt rules pursuant to Code chapter 11 17A to administer the bill. 12 -6- LSB 5677HV (2) 85 pf/nh 6/ 6