Committee advances bill to codify Medicaid eligibility verification amid federal changes

Chairman Newton presented House Bill 1276 (LC521051s), which would codify state verification procedures for Medicaid eligibility to align with recent federal requirements and minimize state error‑rate penalties. Newton told the committee the bill is intended to ensure the state verifies factors such as income, identity, residency, household size and citizenship/immigration status before enrollment and to continue periodic cross‑checks after enrollment.

"If our state has an error rate above the 3% beginning in October 2029 ... it is estimated that every 1% above that would cost the state about a $100,000,000 in penalties," Newton said, urging proactive steps to avoid large federal penalties and to protect Medicaid funding.

Committee members raised concerns about administrative burden, access for people without standard documentation, and the lack of a finalized fiscal note. Emily Iona, identified in the record as chief of staff at the Department of Community Health, told members the state generally does not allow attestation for most programs and that Medicaid may accept initial attestations but performs back‑end verification. "We do verify on the back end," she said. Emma Lowe, governmental affairs director for the Department of Human Services, said DHS had not yet finalized an implementation cost estimate and would provide more detailed numbers later.

Members asked for audits, ZIP‑code breakdowns of error data and inspector‑general findings; departments agreed to provide additional reports. A member recorded in the hearing as "Representative Jones" moved a "due pass" recommendation; the committee voted in favor and advanced HB1276.

The committee instructed departments to supply requested cost estimates, audit results and data breakdowns to inform appropriations and legislative next steps.