The bill makes it easier and faster for Medicaid-enrolled children to receive care from out-of-state providers and reduces provider administrative friction, but it shifts costs and oversight burdens to states and raises fraud/improper payment risks for taxpayers.
Children and youth enrolled in Medicaid: faster access to out-of-state providers due to required streamlined enrollment processes.
Out-of-state providers and health systems: lower administrative burden and greater multi-year participation stability (5-year enrollment) that can increase willingness to serve Medicaid enrollees.
Taxpayers and state governments: higher risk of improper payments or fraud because simplified screening and minimum documentation may miss ineligible or problematic providers.
State governments and taxpayers: implementation and IT/system change costs to modify enrollment processes and comply with the new requirements.
State governments and health systems: increased coordination and oversight burdens to ensure out-of-state providers meet local licensing and practice standards, complicating enforcement.
Based on analysis of 2 sections of legislative text.
Requires each State (the 50 States and DC) to adopt a streamlined Medicaid enrollment process that lets eligible out-of-State providers enroll to furnish, order, prescribe, refer, or certify eligibility for items and services for individuals under age 21 who are enrolled in the State’s Medicaid plan or waiver. The streamlined process must limit screening and documentation to the minimum needed for the State to pay the provider (examples include provider name and NPI) and an out-of-State provider enrolled this way is a participating provider for five years unless terminated or excluded. Adds definitions for eligible out-of-State provider, qualifying individual (under age 21 enrolled in the State plan or waiver), and State; makes conforming amendments to related Medicaid provisions; and takes effect three years after enactment.
Introduced February 26, 2025 by Charles Ernest Grassley · Last progress February 26, 2025