§1396u–7 — Title 42 The Public Health and Welfare | U.S. Code

Summary

Allows a State to give Medicaid to selected groups of people through alternative benefit packages called "benchmark" or "benchmark-equivalent" plans. The plans must include the basic Medicaid services for children (EPSDT) and follow EPSDT rules. A State can add extra benefits and can count premium payments the same way it counts other insurance premiums. Before putting people into these plans, the State must make sure the plan pays for needed transportation to care and must explain how it will provide that transportation. A State can make many full-benefit people join these plans, but not certain groups such as pregnant women required by the State plan, people who are blind or disabled, people on Medicare, hospice patients, people in hospitals or nursing facilities who must spend nearly all their income on care, medically frail or special-needs people, those eligible for long-term care, children in foster care or adoptees, and some other specified groups. A "full-benefit eligible individual" is someone the State finds eligible for all Medicaid services covered by the State plan for a month. Benchmark choices include a standard Blue Cross/Blue Shield PPO, a state employee plan, the largest HMO commercial plan in the State, or another plan the federal government approves. Benchmark-equivalent plans must cover core services (hospital, doctor, lab/x-ray, drugs, mental health, well-child and preventive care), be actuarially equal to a benchmark, and meet minimum vision and hearing values. Actuarial reports must be done by an American Academy of Actuaries member using standard methods. Starting January 1, 2014, benchmark plans must include essential health benefits, and starting January 1, 2022, they must cover routine costs in qualifying clinical trials. Mental health parity rules apply. Family planning must be included for certain individuals. From March 11, 2021 until the end of the period that ends one year after the federal COVID emergency ends (specifically, the last day of the first calendar quarter that begins one year after the last day of the emergency period in section 1320b–5(g)(1)(B)), these plans must cover COVID–19 vaccines, testing, and treatments with no cost-sharing. When the federal agency approves a State’s amendment, it must post online and publish in the Federal Register which Medicaid rules do not apply and why within 30 days.

Title 42, §1396u–7

The Public Health and Welfare — Source: USLM XML via OLRC

(a)(1)(A)Notwithstanding section 1396a(a)(1) of this title (relating to statewideness), section 1396a(a)(10)(B) of this title (relating to comparability) and any other provision of this subchapter which would be directly contrary to the authority under this section and subject to subparagraphs (E) and (F), a State, at its option as a State plan amendment, may provide for medical assistance under this subchapter to individuals within one or more groups of individuals specified by the State through coverage that—

(i)provides benchmark coverage described in subsection (b)(1) or benchmark equivalent coverage described in subsection (b)(2); and

(ii)for any individual described in section 1396d(a)(4)(B) of this title who is eligible under the State plan in accordance with paragraphs (10) and (17) of section 1396a(a) of this title, consists of the items and services described in section 1396d(a)(4)(B) of this title (relating to early and periodic screening, diagnostic, and treatment services defined in section 1396d(r) of this title) and provided in accordance with the requirements of section 1396a(a)(43) of this title.

(B)The State may only exercise the option under subparagraph (A) for an individual eligible under subclause (VIII) of section 1396a(a)(10)(A)(i) of this title or under an eligibility category that had been established under the State plan on or before February 8, 2006.

(C)In the case of coverage described in subparagraph (A), a State, at its option, may provide such additional benefits as the State may specify.

(D)Payment of premiums for such coverage under this subsection shall be treated as payment of other insurance premiums described in the third sentence of section 1396d(a) of this title.

(E)Nothing in this paragraph shall be construed as—

(i)requiring a State to offer all or any of the items and services required by subparagraph (A)(ii) through an issuer of benchmark coverage described in subsection (b)(1) or benchmark equivalent coverage described in subsection (b)(2);

(ii)preventing a State from offering all or any of the items and services required by subparagraph (A)(ii) through an issuer of benchmark coverage described in subsection (b)(1) or benchmark equivalent coverage described in subsection (b)(2); or

(iii)affecting a child’s entitlement to care and services described in subsections (a)(4)(B) and (r) of section 1396d of this title and provided in accordance with section 1396a(a)(43) of this title whether provided through benchmark coverage, benchmark equivalent coverage, or otherwise.

(F)Notwithstanding the preceding provisions of this paragraph, a State may not provide medical assistance through the enrollment of an individual with benchmark coverage or benchmark equivalent coverage described in subparagraph (A)(i) unless, subject to section 1396b(i)(9) of this title and in accordance with section 1396a(a)(4) of this title, the benchmark benefit package or benchmark equivalent coverage (or the State)—

(i)ensures necessary transportation for individuals enrolled under such package or coverage to and from providers; and

(ii)provides a description of the methods that will be used to ensure such transportation.

(2)(A)Except as provided in subparagraph (B), a State may require that a full-benefit eligible individual (as defined in subparagraph (C)) within a group obtain benefits under this subchapter through enrollment in coverage described in paragraph (1)(A). A State may apply the previous sentence to individuals within 1 or more groups of such individuals.

(B)A State may not require under subparagraph (A) an individual to obtain benefits through enrollment described in paragraph (1)(A) if the individual is within one of the following categories of individuals:

(i)The individual is a pregnant woman who is required to be covered under the State plan under section 1396a(a)(10)(A)(i) of this title.

(ii)The individual qualifies for medical assistance under the State plan on the basis of being blind or disabled (or being treated as being blind or disabled) without regard to whether the individual is eligible for supplemental security income benefits under subchapter XVI on the basis of being blind or disabled and including an individual who is eligible for medical assistance on the basis of section 1396a(e)(3) of this title.

(iii)The individual is entitled to benefits under any part of subchapter XVIII.

(iv)The individual is terminally ill and is receiving benefits for hospice care under this subchapter.

(v)The individual is an inpatient in a hospital, nursing facility, intermediate care facility for the mentally retarded, or other medical institution, and is required, as a condition of receiving services in such institution under the State plan, to spend for costs of medical care all but a minimal amount of the individual’s income required for personal needs.

(vi)The individual is medically frail or otherwise an individual with special medical needs (as identified in accordance with regulations of the Secretary).

(vii)The individual qualifies based on medical condition for medical assistance for long-term care services described in section 1396p(c)(1)(C) of this title.

(viii)The individual is an individual with respect to whom child welfare services are made available under part B of subchapter IV on the basis of being a child in foster care or with respect to whom adoption or foster care assistance is made available under part E of such subchapter, without regard to age, or the individual qualifies for medical assistance on the basis of section 1396a(a)(10)(A)(i)(IX) of this title.

(ix)The individual qualifies for medical assistance on the basis of eligibility to receive assistance under a State plan funded under part A of subchapter IV (as in effect on or after the welfare reform effective date defined in section 1396u–1(i) of this title).

(x)The individual is a woman who is receiving medical assistance by virtue of the application of section 1396a(a)(10)(A)(ii)(XVIII) and 1396a(aa) of this title.

(xi)The individual—

(I)qualifies for medical assistance on the basis of section 1396a(a)(10)(A)(ii)(XII) of this title; or

(II)is not a qualified alien (as defined in section 1641 of title 8) and receives care and services necessary for the treatment of an emergency medical condition in accordance with section 1396b(v) of this title.

(C)(i)For purposes of this paragraph, subject to clause (ii), the term “full-benefit eligible individual” means for a State for a month an individual who is determined eligible by the State for medical assistance for all services defined in section 1396d(a) of this title which are covered under the State plan under this subchapter for such month under section 1396a(a)(10)(A) of this title or under any other category of eligibility for medical assistance for all such services under this subchapter, as determined by the Secretary.

(ii)Such term shall not include an individual determined to be eligible by the State for medical assistance under section 1396a(a)(10)(C) of this title or by reason of section 1396a(f) of this title or otherwise eligible based on a reduction of income based on costs incurred for medical or other remedial care.

(b)(1)For purposes of subsection (a)(1), subject to paragraphs (5) and (6), each of the following coverages shall be considered to be benchmark coverage:

(A)The standard Blue Cross/Blue Shield preferred provider option service benefit plan, described in and offered under section 8903(1) of title 5.

(B)A health benefits coverage plan that is offered and generally available to State employees in the State involved.

(C)The health insurance coverage plan that—

(i)is offered by a health maintenance organization (as defined in section 300gg–91(b)(3) of this title), and

(ii)has the largest insured commercial, non-medicaid enrollment of covered lives of such coverage plans offered by such a health maintenance organization in the State involved.

(D)Any other health benefits coverage that the Secretary determines, upon application by a State, provides appropriate coverage for the population proposed to be provided such coverage.

(2)For purposes of subsection (a)(1), subject to paragraphs (5) and (6) 11 So in original. Probably should be followed by a comma. coverage that meets the following requirement shall be considered to be benchmark-equivalent coverage:

(A)The coverage includes benefits for items and services within each of the following categories of basic services:

(i)Inpatient and outpatient hospital services.

(ii)Physicians’ surgical and medical services.

(iii)Laboratory and x-ray services.

(iv)Coverage of prescription drugs.

(v)Mental health services.

(vi)Well-baby and well-child care, including age-appropriate immunizations.

(vii)Other appropriate preventive services, as designated by the Secretary.

(B)The coverage has an aggregate actuarial value that is at least actuarially equivalent to one of the benchmark benefit packages described in paragraph (1).

(C)With respect to each of the following categories of additional services for which coverage is provided under the benchmark benefit package used under subparagraph (B), the coverage has an actuarial value that is equal to at least 75 percent of the actuarial value of the coverage of that category of services in such package:

(i)Vision services.

(ii)Hearing services.

(3)The actuarial value of coverage of benchmark benefit packages shall be set forth in an actuarial opinion in an actuarial report that has been prepared—

(A)by an individual who is a member of the American Academy of Actuaries;

(B)using generally accepted actuarial principles and methodologies;

(C)using a standardized set of utilization and price factors;

(D)using a standardized population that is representative of the population involved;

(E)applying the same principles and factors in comparing the value of different coverage (or categories of services);

(F)without taking into account any differences in coverage based on the method of delivery or means of cost control or utilization used; and

(G)taking into account the ability of a State to reduce benefits by taking into account the increase in actuarial value of benefits coverage offered under this subchapter that results from the limitations on cost sharing under such coverage.

(4)Notwithstanding the previous provisions of this section, a State may not provide for medical assistance through enrollment of an individual with benchmark coverage or benchmark equivalent coverage under this section unless—

(A)the individual has access, through such coverage or otherwise, to services described in subparagraphs (B) and (C) of section 1396d(a)(2) of this title; and

(B)payment for such services is made in accordance with the requirements of section 1396a(bb) of this title.

(5)Effective January 1, 2014, any benchmark benefit package under paragraph (1) or benchmark equivalent coverage under paragraph (2) must provide at least essential health benefits as described in section 18022(b) of this title, and beginning January 1, 2022, coverage of routine patient costs for items and services furnished in connection with participation in a qualifying clinical trial (as defined in section 1396d(gg) of this title).

(6)(A)In the case of any benchmark benefit package under paragraph (1) or benchmark equivalent coverage under paragraph (2) that is offered by an entity that is not a medicaid managed care organization and that provides both medical and surgical benefits and mental health or substance use disorder benefits, the entity shall ensure that the financial requirements and treatment limitations applicable to such mental health or substance use disorder benefits comply with the requirements of section 300gg–26(a) of this title in the same manner as such requirements apply to a group health plan. In applying the previous sentence with respect to requirements under paragraph (8) of section 300gg–26(a) of this title, a benchmark benefit package or benchmark equivalent coverage described in such sentence shall be treated as in compliance with such requirements if the State plan under this subchapter or the benchmark benefit package or benefit equivalent coverage, as applicable, is in compliance with subpart C of part 440 of title 42, Code of Federal Regulations, or any successor regulation.

(B)Coverage provided with respect to an individual described in section 1396d(a)(4)(B) of this title and covered under the State plan under section 1396a(a)(10)(A) of this title of the services described in section 1396d(a)(4)(B) of this title (relating to early and periodic screening, diagnostic, and treatment services defined in section 1396d(r) of this title) and provided in accordance with section 1396a(a)(43) of this title, shall be deemed to satisfy the requirements of subparagraph (A).

(7)Notwithstanding the previous provisions of this section, a State may not provide for medical assistance through enrollment of an individual with benchmark coverage or benchmark-equivalent coverage under this section unless such coverage includes for any individual described in section 1396d(a)(4)(C) of this title, medical assistance for family planning services and supplies in accordance with such section.

(8)Notwithstanding the previous provisions of this section, a State may not provide for medical assistance through enrollment of an individual with benchmark coverage or benchmark-equivalent coverage under this section unless, during the period beginning on March 11, 2021, and ending on the last day of the first calendar quarter that begins one year after the last day of the emergency period described in section 1320b–5(g)(1)(B) of this title, such coverage includes (and does not impose any deduction, cost sharing, or similar charge for)—

(A)COVID–19 vaccines and administration of the vaccines; and

(B)testing and treatments for COVID–19, including specialized equipment and therapies (including preventive therapies), and, in the case of such an individual who is diagnosed with or presumed to have COVID–19, during the period such individual has (or is presumed to have) COVID–19, the treatment of a condition that may seriously complicate the treatment of COVID–19, if otherwise covered under the State plan (or waiver of such plan).

(c)With respect to a State plan amendment to provide benchmark benefits in accordance with subsections (a) and (b) that is approved by the Secretary, the Secretary shall publish on the Internet website of the Centers for Medicare & Medicaid Services, a list of the provisions of this subchapter that the Secretary has determined do not apply in order to enable the State to carry out the plan amendment and the reason for each such determination on the date such approval is made, and shall publish such list in the Federal Register and 22 So in original. not later than 30 days after such date of approval.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 1937 of act Aug. 14, 1935, was renumbered section 1939 and is classified to section 1396v of this title.

Amendments

2021—Subsec. (b)(8). Pub. L. 117–2 added par. (8). 2020—Subsec. (a)(1)(A). Pub. L. 116–260, § 209(a)(2)(A), substituted “subparagraphs (E) and (F)” for “subsection (E)”. Subsec. (a)(1)(F). Pub. L. 116–260, § 209(a)(2)(B), added subpar. (F). Subsec. (b)(5). Pub. L. 116–260, § 210(c), inserted “, and beginning January 1, 2022, coverage of routine patient costs for items and services furnished in connection with participation in a qualifying clinical trial (as defined in section 1396d(gg) of this title)” before period at end. Subsec. (b)(6)(A). Pub. L. 116–260, § 203(a)(4)(B), substituted “requirements of section 300gg–26(a)” for “requirements of section 300gg–4(a)” and inserted at end “In applying the previous sentence with respect to requirements under paragraph (8) of section 300gg–26(a) of this title, a benchmark benefit package or benchmark equivalent coverage described in such sentence shall be treated as in compliance with such requirements if the State plan under this subchapter or the benchmark benefit package or benefit equivalent coverage, as applicable, is in compliance with subpart C of part 440 of title 42, Code of Federal

Regulations

, or any successor regulation.” 2010—Subsec. (a)(1)(B). Pub. L. 111–148, § 2001(a)(5)(E), inserted “subclause (VIII) of section 1396a(a)(10)(A)(i) of this title or under” after “eligible under”. Subsec. (a)(2)(B)(viii). Pub. L. 111–148, § 2004(c)(2), inserted “, or the individual qualifies for medical assistance on the basis of section 1396a(a)(10)(A)(i)(IX) of this title” before period at end. Subsec. (b)(1). Pub. L. 111–148, § 2001(c)(1), inserted “subject to paragraphs (5) and (6),” before “each of the following” in introductory provisions. Subsec. (b)(2). Pub. L. 111–148, § 2001(c)(2)(A), inserted “subject to paragraphs (5) and (6)” after “subsection (a)(1),” in introductory provisions. Subsec. (b)(2)(A)(iv) to (vii). Pub. L. 111–148, § 2001(c)(2)(B), added cls. (iv) and (v) and redesignated former cls. (iv) and (v) as (vi) and (vii), respectively. Subsec. (b)(2)(C). Pub. L. 111–148, § 2001(c)(2)(C), redesignated cls. (iii) and (iv) as (i) and (ii), respectively, and struck out former cls. (i) and (ii) which read as follows: “(i) Coverage of prescription drugs. “(ii) Mental health services.” Subsec. (b)(5), (6). Pub. L. 111–148, § 2001(c)(3), added pars. (5) and (6). Subsec. (b)(7). Pub. L. 111–148, § 2303(c), added par. (7). 2009—Subsec. (a)(1)(A). Pub. L. 111–3, § 611(a)(1)(A), in introductory provisions, substituted “Notwithstanding section 1396a(a)(1) of this title (relating to statewideness), section 1396a(a)(10)(B) of this title (relating to comparability) and any other provision of this subchapter which would be directly contrary to the authority under this section and subject to subsection (E)” for “Notwithstanding any other provision of this subchapter” and “coverage that” for “enrollment in coverage that provides”. Subsec. (a)(1)(A)(i). Pub. L. 111–3, § 611(a)(1)(B), inserted “provides” before “benchmark coverage”. Subsec. (a)(1)(A)(ii). Pub. L. 111–3, § 611(a)(1)(C), added cl. (ii) and struck out former cl. (ii) which read as follows: “for any child under 19 years of age who is covered under the State plan under section 1396a(a)(10)(A) of this title, wrap-around benefits to the benchmark coverage or benchmark equivalent coverage consisting of early and periodic screening, diagnostic, and treatment services defined in section 1396d(r) of this title.” Subsec. (a)(1)(C). Pub. L. 111–3, § 611(a)(2), substituted “additional” for “wrap-around” in heading and struck out “wrap-around or” before “additional” in text. Subsec. (a)(1)(E). Pub. L. 111–3, § 611(a)(3), added subpar. (E). Subsec. (a)(2)(B)(viii). Pub. L. 111–3, § 611(b), substituted “child welfare services are made available under part B of subchapter IV on the basis of being a child in foster care or” for “aid or assistance is made available under part B of subchapter IV to children in foster care and individuals”. Subsec. (c). Pub. L. 111–3, § 611(c), added subsec. (c).

Statutory Notes and Related Subsidiaries

Effective Date

of 2020 AmendmentAmendment by section 209(a)(2) of Pub. L. 116–260 effective Dec. 27, 2020, and applicable to transportation furnished on or after such date, see section 209(a)(4) of Pub. L. 116–260, set out as a note under section 1396a of this title. Amendment by section 210(c) of Pub. L. 116–260 applicable with respect to items and services furnished on or after Jan. 1, 2022, see section 210(e) of Pub. L. 116–260, set out as a note under section 1308 of this title.

Effective Date

of 2010 AmendmentAmendment by section 2004(c)(2) of Pub. L. 111–148 effective Jan. 1, 2014, see section 2004(d) of Pub. L. 111–148, set out as an Effective and Termination Dates of 2010 Amendment note under section 1396a of this title. Amendment by section 2303(c) of Pub. L. 111–148 effective Mar. 23, 2010, and applicable to items and services furnished on or after such date, see section 2303(d) of Pub. L. 111–148, set out as an Effective and Termination Dates of 2010 Amendment note under section 1396a of this title.

Effective Date

of 2009 Amendment Pub. L. 111–3, title VI, § 611(d), Feb. 4, 2009, 123 Stat. 101, provided that: “The

Amendments

made by subsections (a), (b), and (c) of this section [amending this section] shall take effect as if included in the amendment made by section 6044(a) of the Deficit Reduction Act of 2005 [Pub. L. 109–171].”

Effective Date

Pub. L. 109–171, title VI, § 6044(b), Feb. 8, 2006, 120 Stat. 92, provided that: “The amendment made by subsection (a) [enacting this section] takes effect on March 31, 2006.”

§1396u–7 State flexibility in benefit packages

Summary

Title 42, §1396u–7

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Amendments

Regulations

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Effective Date

Amendments

Effective Date

Citations & Metadata