Protect Medicaid Act

This legislation would stop the use of federal Medicaid money to pay the administrative costs of state programs that give health benefits to people who are not eligible for Medicaid because of their immigration status. The only exception is that federal funds could still help pay to set up or run systems that make sure states follow this rule .

It also requires a report from the federal health watchdog within 180 days of becoming law. The report must explain how states keep these costs separate, how they ensure they follow the rules, how they finance these state-only programs (including use of provider taxes and intergovernmental transfers), and whether discounted drugs from federal programs are used for these patients and how that might affect drug prices.

• Who is affected: State Medicaid programs and noncitizens who are ineligible for Medicaid based on immigration status.
• What changes: No federal Medicaid funds for administrative costs of these state benefit programs; exception for compliance systems; required federal report on state practices and drug pricing effects .
• When: The report is due within 180 days after the bill becomes law.