House Study Bill 563 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON HUMAN RESOURCES BILL BY CHAIRPERSON MILLER) A BILL FOR An Act establishing asset, income, and identity verification 1 requirements for medical assistance applicants and 2 recipients. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5677YC (6) 85 pf/nh

H.F. _____ 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. 24 3. As a condition of awarding or continuing assistance under 25 the medical assistance program, the department shall verify 26 the name, date of birth, and social security number of each 27 applicant and recipient as specified in subsection 1 against 28 the following public records: 29 a. A nationwide public records data source of physical 30 asset ownership such as real property, automobiles, watercraft, 31 aircraft, and luxury vehicles. 32 b. A nationwide public records data source of incarcerated 33 individuals. 34 c. A comprehensive public records database that identifies 35 -1- LSB 5677YC (6) 85 pf/nh 1/ 6

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

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

H.F. _____ who are eligible based upon age, blindness, or disability. 1 The bill directs the department of human services (DHS) to 2 contract with a third-party vendor to develop and implement 3 procedures for verifying the income, assets, and identity of 4 medical assistance program applicants and recipients who are 5 eligible based upon their age, blindness, or disability to 6 prevent fraud, misrepresentation, and inadequate documentation 7 when determining an applicant’s eligibility for assistance 8 prior to the distribution of benefits and during eligibility 9 redeterminations and reviews. Each verification is required 10 to include utilization of the asset, income, and identity 11 verification system to be established under the bill. DHS is 12 directed to contract with a third-party vendor to establish 13 a computerized asset, income, and identity eligibility 14 verification system. The vendor must demonstrate access to a 15 current financial institution network representing at least 16 90 percent of the financial institutions in the state and 17 nationally. 18 As a condition of awarding or continuing assistance under 19 the medical assistance program, DHS is required to verify 20 the name, date of birth, and social security number of each 21 applicant and recipient whose eligibility is based on age, 22 blindness, or disability against certain public records 23 specified in the bill. 24 The bill directs DHS to enter into agreements with financial 25 institutions in the state to operate the financial record 26 matching program as required under federal law. Under such 27 program, and with the authorization of the applicant or 28 recipient, DHS may request and receive from any financial 29 institution doing business in this state or nationally 30 the financial records of any applicant for or recipient of 31 medical assistance whose eligibility for medical assistance is 32 based upon the applicant’s or recipient’s age, blindness, or 33 disability. DHS must, within 15 days of the request, collect 34 the current account balance information for open and closed 35 -4- LSB 5677YC (6) 85 pf/nh 4/ 6

H.F. _____ accounts for a period of up to the 60 previous months. DHS 1 must systematically canvass financial institutions nationally, 2 regionally, and locally. 3 The bill provides for immunity from civil liability and 4 criminal prosecution for DHS and any financial institution that 5 discloses financial records under the bill or for any other 6 action taken in good faith to comply with the requirements of 7 the bill. 8 Any records established or information collected under the 9 bill are only available to the director of human services 10 or the director’s designee, the applicant or recipient, and 11 the applicant’s or recipient’s authorized representative as 12 provided by the rules of the department. The records and 13 information are to be available and used only for purposes 14 directly connected with the determination and verification 15 of eligibility for medical assistance for applicants and 16 recipients whose eligibility for medical assistance is 17 based upon the applicant’s or recipient’s age, blindness, or 18 disability. The records and information made available to 19 the applicant or recipient, or the applicant’s or recipient’s 20 authorized representative, shall not include information 21 provided to the department that is prohibited from release by 22 federal or state law or under contract or agreement between the 23 department and another entity if such contract or agreement 24 prohibits release of such information. 25 DHS is directed to provide a status report to the governor 26 and the general assembly regarding the implementation of the 27 bill six months after the date of implementation. The report 28 shall summarize the department’s time and labor associated 29 with implementation of the bill, the feedback and reactions of 30 applicants and recipients, any barriers to implementation that 31 were overcome, anticipated future actions, and the department’s 32 assessment of the relative success of the implementation. 33 Under the bill, an individual who is an applicant for or 34 recipient of medical assistance based on the individual’s 35 -5- LSB 5677YC (6) 85 pf/nh 5/ 6

H.F. _____ age, blindness, or disability who refuses or revokes an 1 authorization required in the bill may be subject to denial or 2 termination of eligibility. 3 The bill directs DHS to adopt rules pursuant to Code chapter 4 17A to administer the bill. 5 -6- LSB 5677YC (6) 85 pf/nh 6/ 6