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DEPARTMENT OF HUMAN SERVICES Amendments to Chapter 17-1722.3 Hawaii Administrative Rules November 5, 2014 SUNNARY 1. A new subchapter 1.5 is added.

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Page 1: Hawaii Administrative Rules Amendments to Chapter 17-1722 ...humanservices.hawaii.gov/wp-content/uploads/2014/11/DOC000.pdf · §17-1722.3-5.2 Hawaii in the case of Korab v. McManaman,

DEPARTMENT OF HUMAN SERVICES

Amendments to Chapter 17-1722.3Hawaii Administrative Rules

November 5, 2014

SUNNARY

1. A new subchapter 1.5 is added.

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§17-1722.3-5.2

SUBCHAPTER 1.5

EMERGENCY ADMINISTRATIVE RULES RELATING TO STATEMEDICAL ASSISTANCE FOR CERTAIN LAWFULLY PRESENT NON-

CITIZENS

§17-1722.3-5.1 Definitions. The followingdefinitions shall apply to this subchapter:

“Current beneficiary” means a non-pregnant adultnon-citizen who is receiving, at the time thissubchapter is adopted, State medical assistancebenefits that exceed the benefits provided undersection 17-1722.3-18.

“Exchange” means the Hawaii health insuranceexchange established under the Affordable Care Act.

“New ABD Beneficiary” means an aged, blind ordisabled non-citizen who applies for benefits undersection 17-1722.3-5.6 and is determined eligible forbenefits under section 17-1722.3-5.7.

“Qualified health plan” means a qualified healthplan or a qualified health plan issuer, as those termsare defined in 45 C.F.R. §155.20, and as the contextmay dictate. [Eff NOV 052014 1 (Auth: HRS §91-3,91-4, 346-14) (Imp: HRS §346-14)

§17-1722.3-5.2 Basis for emergencyadministrative rules. (a) This subchapter is adoptedas an emergency rule under section 91-3 (b), HawaiiRevised Statutes, because the department finds that itmust amend this chapter upon less than 30 days’ noticeof hearing in order to avoid imminent peril to publichealth or safety.

(b) Certain lawfully present non-pregnant adultnon-citizens who are ineligible for federal medicalassistance due to their immigration status are inreceipt of State medical assistance benefits thatexceed the Basic Health Hawaii benefits defined underthis chapter because of an injunction order issued bythe United States District Court for the District of

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§17-1722.3-5.2

Hawaii in the case of Korab v. McManaman, Civil No.10-00483 JMS/KSC.

(c) The injunction order was vacated effectiveNovember 3, 2014. Therefore, the department isrequired by its current administrative rules toterminate the State medical assistance benefitsreceived by the current beneficiaries and toredetermine their eligibility for the Basic HealthHawaii program.

(d) The Affordable Care Act requires most Hawaiiresidents, including lawfully present non-citizens, tohave minimum levels of health coverage. Basic HealthHawaii does not provide the coverage required underthe Affordable Care Act. Therefore, the departmentintends to repeal this chapter upon expiration ofthese emergency rules.

(e) Current beneficiaries who are not aged,blind or disabled, are at risk of losing State medicalassistance coverage before they can be enrolled in aqualified health plan through the Exchange. Thosewith household income of less than one hundred percentof the federal poverty level get less financial helpwith paying their insurance premium than other people.These emergency rules temporarily continue theircurrent benefits while they are transitioning fromState funded medical assistance to enrollment in aqualified health plan purchased through the Exchange,and temporarily provide help with paying the share ofpremiums dues to their qualified health plan until apermanent premium assistance program is established bythe department.

(f) Current beneficiaries who are aged, blind ordisabled have greater and more frequent healthcareneeds, and will be more severely impacted if theypurchase insurance through the Exchange since thatcoverage will impose copayments for many services thatare currently provided at no cost, excludes manyservices that are important to aged, blind anddisabled individuals, such as medical transportation,long term care, and home and community based services.These individuals will also get less financial helpwith paying the premiums if their household income is

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§17-1722.3-5.3

less than one hundred percent of the federal povertylevel. These emergency rules temporarily continuetheir current benefits until a new State medicalassistance program for certain lawfully present non-pregnant adult non-citizens who are aged, blind ordisabled is established by the State, and allow newABD beneficiaries to apply for this benefit.

(g) These emergency rules ensure that currentbeneficiaries and new ABD beneficiaries have access toneeded health care, including services that are notavailable through the Exchange, without the burden andconfusion of being terminated or excluded fromexisting benefits before appropriate replacementcoverage is in place. [Eff NUV 052014 ] (Auth:HRS §9l-3, 91-4, 346-14) (Imp: HRS §346-14)

§17-1722.3-5.3 Purpose. (a) This subchapterprovides temporary and emergency relief by:

(1) Continuing the same health coverage tocurrent beneficiaries that they arereceiving at the time this subchapter isadopted, pending repeal of this chapter;

(2) Providing new ABD beneficiaries with Statemedical assistance that is equivalent tofederal medical assistance benefits, pendingadoption of administrative rules creating anew State funded medical assistance programfor certain non-citizens who are aged,blind, and disabled;

(3) Transitioning certain current beneficiariesto qualified health plans purchased throughthe Exchange; and

(4) Providing premium assistance to certain non-pregnant adult non-citizens who are notaged, blind or disabled, who are determinedeligible for and purchase a qualified healthplan through the Exchange, pending adoptionof administrative rules establishing apremium assistance program.

(b) Certain non-citizens who are eligible forfederal medical assistance, including but not limited

2 A

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§17-1722.3-5.3

to pregnant women and children who are citizens ofCOFA nations, continue to be eligible for federalmedical assistance and are not affected by theseemergency administrative rules. [Eff NOV 052014 1(Auth: HRS §91-3, 91-4, 346-14) (Imp: HRS §346-14)

§17-1722.3-5.4 Effect of this subchapter. (a)This subchapter shall supersede any contraryadministrative rules contained in this chapter, unlessotherwise specifically noted in this subchapter.

(b) This subchapter shall apply to currentbeneficiaries, applicants under sections 17-1722.3-5.6and l7-l722.3-5.7,’new ABD beneficiaries, andindividuals eligible for premium assistance undersection 17-1722.3-5.14. [Eff NOV 052014 1 (Auth:HRS §91-3, 91-4, 346-14) (Imp: HRS §346-14)

§17-1722.3-5.5 Continuation of eligibility forcurrent beneficiaries. Current beneficiaries shallcontinue to remain eligible for benefits under section17-1722.3-5.9 provided they continue meet theapplicable eligibility requirements, other thancitizenship and non-citizen status, of chapter17-1715.1 (Former Foster Care Children Group), 17-1717(Parents and Other Caretaker Relatives Group),17-1717.1 (Transitional Medical Assistance), 17-1718(Adults Group), 17-1719 (Aged, Blind and DisabledGroup), 17-1730.1 (Medically Need Spenddown) or17-1735.1 (Fee For Service) . [Eff NOV 052014 ](Auth: HRS §91-3, 91-4, 346-14) (Imp: HRS §346-14)

§17-1722.3-5.6 Open application period. Withinfifteen calendar days after the effective date of thissubchapter, the department shall publish notice of anopen application period for new ABD beneficiaries asprovided under, and subject to the requirements of,section l71722.310. [Eff NOV 135 2014 1 (Auth:HRS §9l-3, 91-4, 346-14) (Imp: HRS §346-14)

31 2A

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§17-1722.3-5.8

§17-1722.3-5.7 Eligibility requirements for newaged, blind, and disabled beneficiaries. To bedetermined eligible for benefits under section 17-1722.3-5.9, an individual who applies during an openapplication period must:

(1) Meet the requirements set forth in chapter17-1719 (Aged, Blind and Disabled Group),with the exception of citizenship and non-citizen status under section 17-1714.1-28;

(2) Be a qualified non-citizen, a nonimmigrantunder the INA (including citizens of COFAnations), or a non-citizen paroled into theUnited States under section 212(d) (5) of theINA for less than one year;

(3) Not be eligible for federal medicalassistance(A) Solely due tcitizenship or non-

citizen status; or(B) Under chapters:

(i) 17-1715, Children Group;(ii) 17-1716, Pregnant Women Group; or(iii) 17-1719, Aged, Blind and Disabled

Group.(4) Not be eligible for health coverage as an

active military enlistee, a retired militarypersonnel, or a dependent of an active orretired military enlistee.[Eff NOV 052014 1 (Auth: HRS §9l-3,91-4, 346-14) (Imp: HRS §346-14)

§17-1722.3-5.8 Enrollment into a participatinghealth plan. (a) All current beneficiaries and newABD beneficiaries, except for adults identified insection 17-1735.1-2(a), shall be enrolled in a healthplan as provided under chapter 17-1720.1.

(b) Current beneficiaries and new ABDbeneficiaries who are adults identified in section17-1735.1-2(a) shall not be enr11ed in a health planand will receive services on a fee-for-service basis.[Eff NOV 052014 1 (Auth: HRS §91-3, 91-4, 346-14)(Imp: HRS §346-14)

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§17-1722.3-5.9

§17-1722.3-6.9 Benefits. (a) All currentbeneficiaries and new ABD beneficiaries shall beprovided a standard benefits package by aparticipating health plan and other services whenappropriate as described in chapter 17-1720.

(b) Current beneficiaries and new ABDbeneficiaries who are adults identified in section17-1735.1-2(a) shall be provided coverage under thefee-for-service provisions as described in chapter17-1737. [Eff NOV 1352014 ] (Auth: HRS §91-3,91-4, 346-14) (Imp: HRS §346-14)

§17-1722.3-5.10 Eligibility review requirements.Eligibility shall be redetermined in accordance withchapter 17-1712.1 ad sbpter 5 of chapter17-1714.1. [Eff NuV 0 D UI’t ] (Auth: HRS §91-3,91-4, 346-14) (Imp: HRS §346-14)

§17-1722.3-5.11 Termination of eligibility. Anindividual’s eligibility for services under thissubchapter shall be terminated for any of thefollowing reasons:

(1) The individual fails to meet any of theeligibility requirements of sections17-1722.3-5.5 and 17-1722.3-5.7;

(2) Death of the individual;(3) The individual no longer resides in the

State;(4) The individual voluntarily terminates

coverage;

(5) The individual is admitted to a publicinstitution as defined in chapter 17-1714.1;

(6) The individual’s whereabouts are unknown;(7) Lack of State funds;(8) The program is terminated; or(9) Expiration of these emergency rules.

[Eff NOV 1352014 ] (Auth: HRS §9l-3,91-4, 346-14) (Imp: MRS §346-14)

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§17-1722.3-5.14

§17-1722.3-5.12 Disenroliment from aparticipating health plan. An enrollee under thissubchapter shall be disenrolled from a participatinghealth plan as provided under subchapter 4 of chapter17-1720.1. [Eff NOV 052014 1 (Auth: HRS §91-3,91-4, 346-14) (Imp: HRS §346-14)

§17-1722.3-5.13 Transition of currentbeneficiaries who are not aged, blind, and disabled.(a) The department shall send the individual’sapplication information, which includes household andother applicable information, and may also sendenrollment information, to the Exchange for purposesof calculating the individual’s advance premium taxcredit and cost-share reduction and for enrollment ina qualified health plan through the Exchange.

(b) To ensure continued health insurancecoverage, individuals will need to complete theExchange application process and enroll in a qualifiedhealth plan through the Exchange prior to terminationof Basic Health Hawaii, which will occur no earlierthan March 1, 2015.

(c) The department shall not be responsible foran individual completing the Exchange applicationprocess, enrolling in a qualified health plan throughthe Exchange, or for calculating an individual’sadvance premium tax credit or cost-sharing reduction.[Eff NOV 052014 1 (Auth: HRS §91-3, 91-4, 346-14)(Imp: HRS §346-14)

§17-1722.3-5.14 Premium assistance eligibilityrequirements. In order to receive the premiumassistance described under sections 17-1722.3-5.14 to17-1722.3-5.17, an eligible individual shall:

(1) Have selected or be enrolled in a 94%actuarial value silver level qualifiedhealth plan through the Exchange;

(2) Be determined eligible for advanced premiumtax credit and the maximum cost-sharingreduction by the Exchange; and

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§17-1722.3-5.14

(3) Have household income of less than onehundred percent of the federal poverty levelfor the applicable household size asdetermined by the Exchange’and communicatedby the Exchange to the qualified health planselected by the individual.

(4) If the Exchange does not communicate thisinformation to the qualified health plan,then the qualified health plan may contactthe individual to obtain informationnecessary for the qualified health plan todetermine whether the individual’s householdincome is less than one hundred percent ofthe federal poverty level for the applicablehousehold size. [Eff NOV 052014 1 (Auth:HRS §91-3, 346.14) (Imp: HRS §346.14)

§17-1722.3-5.15 Premium assistance benefits.(a) The department shall, upon presentation of aninvoice by a qualified health plan to the department,pay to the eligible individual’s qualified health plan(referred to in this section as “the health plan”) theshare of premium that the eligible individual isrequired to pay to the health plan to receivecoverage.

(b) The department shall pay the eligibleindividual’s share of premium to the health plan onlyupon receipt by the department of an invoice from thehealth plan.

(c) The department shall not make any paymentsdirectly to eligible individuals.

(d) The department shall not pay, and theeligible individual shall be responsible for, anycost-sharing including, but not limited to,deductible, co-payment or co-insurance.

(e) The department is not responsible forensuring that the health plan timely submits aninvoice for premium payment to the department. Anycomplaints by an eligible individual regarding thehealth plan billing the individual for the

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§17-1722.3-5.18

individual’s share of premium must be directed to thehealth plan. [Eff NUV 052014 ] (Auth: HRS §9l-3,346-14) (Imp: HRS §346-14)

§17-1722.3-5.16 Termination of premiumassistance. An individual’s eligibility for premiumassistance shall be terminated at any time for any ofthe following reasons:

(1) Fails to meet the eligibility requirementsset forth in section 17-1731-5.14;

(2) voluntarily terminates participation in thepremium assistance program;No longer resides in the State;Death of the individual;Whereabouts are unknown;Insufficient State funds; orThe premium assistance benefit under thissubchapter is terminated.[Eff NOV 052014 ] (Auth: HRS §91-3,346-14) (Imp: HRS §346-14)

§17-1722.3-5.17 Administration of premiumassistance. The department may contract with a thirdparty or parties to provide the premium assistancebenefit and to provide administration including, butnot limited to, payment, auditing, and recovery. Thedepartment’s provision of premium assistance shall beadministered at no cost to the eligible individual.[Eff NOV 052014 1 (Auth: I-{RS §9l-3, 346-14) (Imp:

HRS §346-14)

§17-1722.3-5.18 Effective period of theseemergency administrative rules. These emergencyadministrative rules shall take effect upon filingwith the Lieutenant Governor’s office and shall beeffective for no longer than one hundred twentycalendar days. [Eff NOV 052014 1 (Auth: HRS§9l-3, 91-4, 346-14) (Imp: HRS §346-14)

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DEPARTMENT OF HUMAN SERVICES

Amendments to Chapter 17-1722.3, Hawaii AdministrativeRules, on the Summary page dated November 5, 2014, were adoptedon November 5, 2014, without public hearing pursuant to §91-3(b), Hawaii Revised Statutes.

These amendments shall take effect upon filing with theOffice of the Lieutenant Governor and shall be effective for nomore than one hundred twenty calendar days after such filing,pursuant to §91-4(b) (2), Hawaii Revised Statutes.

APPROVED AS TO FORM:

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DirectorDepartment of Human Services

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Filed

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Page 16: Hawaii Administrative Rules Amendments to Chapter 17-1722 ...humanservices.hawaii.gov/wp-content/uploads/2014/11/DOC000.pdf · §17-1722.3-5.2 Hawaii in the case of Korab v. McManaman,