Medicaid Third Party Liability Act
Medicaid Third Party Liability Act
Plain Language Summary
# Medicaid Third Party Liability Act - Summary **What the Bill Would Do** This bill would change how Medicaid handles payment responsibilities when a patient has other insurance coverage. Currently, Medicaid must pay first for two categories of services: preventive pediatric care (like checkups and vaccines for children) and services for people whose child support is being enforced. The bill would eliminate these exceptions, meaning that other insurance companies would be required to pay first in these situations, and Medicaid would only pay afterward.
The bill also strengthens requirements for states to collect and verify information about patients' other insurance before providing Medicaid coverage. **Who It Affects and Key Provisions** This bill primarily affects Medicaid beneficiaries (low-income individuals and families), children receiving preventive care, families involved in child support enforcement, and state Medicaid programs. The main provisions would: (1) remove the special rules that currently allow Medicaid to pay first for pediatric preventive care, (2) change the payment order for services related to child support enforcement cases, and (3) deny federal Medicaid funding for services if states fail to obtain and verify third-party insurance information beforehand. **Current Status** The bill is currently in committee (as of the 119th Congress), meaning it has been introduced but has not yet been voted on by the full House.
CRS Official Summary
Medicaid Third Party Liability Act This bill modifies requirements relating to Medicaid third-party liability. Current law generally requires legally liable third parties (e.g., health insurers) to pay claims before Medicaid. However, Medicaid must pay first (and seek reimbursement from liable third parties) for claims for (1) preventive pediatric care, and (2) services for an individual for whom child support enforcement is being conducted by the state. The bill repeals these exceptions. Current law also requires state Medicaid programs to take all reasonable measures to identify legally liable third parties. The bill specifically prohibits federal Medicaid payment for services to individuals for whom third-party insurance information was not obtained and verified by the state.
Latest Action
Referred to the House Committee on Energy and Commerce.