The bill increases Medicaid continuity across State lines—protecting military families and people awaiting long‑term supports—while shifting administrative and fiscal burdens to States and creating risks of service delays and beneficiary confusion where services or consistent rules are lacking.
People on State HCBS waiting lists (including those with chronic conditions) keep their place while a receiving State conducts assessments, eligibility determinations, and any fair‑hearing — preserving access to long‑term services and supports.
Active‑duty service members and their dependents retain Medicaid residency and continuity of care when relocated across States, reducing the risk of coverage gaps during moves.
Receiving States are required to pay for covered medical assistance furnished in their State (consistent with availability and HHS guidance), which reduces out‑of‑pocket costs for beneficiaries who relocate and limits inter‑state payment disputes.
If the receiving State does not have the requested HCBS or other services available, beneficiaries may still face delays or lack immediate access to needed supports despite preserved waiting‑list status.
States will incur administrative and fiscal costs to implement residency, payment, and waiting‑list rules, which could create budget pressure and lead States to shift funds away from other services or request additional federal support.
Requiring States to honor out‑of‑state HCBS assessments, eligibility decisions, and fair‑hearing rights may increase inter‑state disputes and create substantial oversight and guidance burdens for HHS to resolve inconsistent program rules.
Based on analysis of 2 sections of legislative text.
Requires States to treat relocated active-duty service members and eligible dependents as Medicaid residents, preserve HCBS waiting-list positions, and cover available care in the receiving State; funds HHS implementation.
Introduced May 14, 2025 by Jennifer Kiggans · Last progress May 14, 2025
Requires State Medicaid plans to treat active-duty service members who relocate (and qualifying family members defined as “active duty relocated individuals”) as residents for Medicaid eligibility beginning January 1, 2028, unless the individual opts out. Preserves an individual’s spot on a State home-and-community‑based services (HCBS) waiting list while the receiving State completes eligibility assessments and any fair hearings, and requires payment for covered medical assistance furnished in the State they relocate to to the extent services are available and consistent with HHS guidance. Defines key terms and provides HHS $1,000,000 per year for FY2026–FY2030 for implementation, with special timing rules for States that need to change state law.