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Requires States to treat active-duty military members who relocate (and their dependents, and those who left active duty within 12 months) as residents of the receiving State for Medicaid eligibility beginning January 1, 2028, unless the family opts out. It preserves placement on State home-and-community-based services (HCBS) waiting lists for relocated individuals while the receiving State conducts assessments and completes eligibility decisions, and directs HHS to issue guidance and pay for covered medical assistance furnished in the receiving State to the extent available. Provides definitions for “active duty relocated individual” and “home and community-based services waiting list,” appropriates $1,000,000 per year for FY2026–FY2030 to HHS to implement the changes, and allows limited delay for State compliance if the State must pass legislation to conform to the new rules.
The bill improves continuity of Medicaid eligibility and protections for relocating active-duty service members and others awaiting HCBS, but it shifts costs, administrative burden, and coordination challenges onto States and may still leave some people without needed services where they move.
Active-duty service members and their dependents who relocate will be treated as residents of the receiving State for Medicaid eligibility starting Jan 1, 2028, preserving their ability to remain enrolled without reestablishing residency.
People on Medicaid HCBS waiting lists who move will keep their position and receiving States must cover medically available services for relocated active-duty individuals, improving continuity of care and reducing service interruptions during relocations.
Provides HHS $1 million per year (FY2026–FY2030) to support implementation, offering federal resources for guidance and technical assistance to States.
Relocated beneficiaries may still lose access to specific HCBS or face long delays if the receiving State lacks equivalent services or has more restrictive waivers or limited slots.
States could incur added administrative and financial burdens to assess relocated individuals, maintain waiting-list positions, and pay for out‑of‑State services, shifting costs to State Medicaid programs and taxpayers.
The change may trigger inter‑state billing, reimbursement, and coordination disputes that require HHS guidance and could prolong access while disputes are resolved.
Introduced May 14, 2025 by Jennifer Kiggans · Last progress May 14, 2025