Safeguarding Medicaid Act

This bill would require every state and territory to check people’s assets (like money in the bank, investments, and other property) when they apply for or renew Medicaid. States would have to use an electronic system to verify assets, and the federal health agency would set the rules for how to do it. Most changes begin one year after the bill becomes law, with a year-long phase-in for states to submit and start using an electronic asset-check plan; a state facing economic hardship could get up to a one-year delay.

States would also have to add a “resources” test to Medicaid eligibility, not just an income test. If someone’s assets are above the limit used for the SSI program (or a lower limit the state sets), they would not qualify. This does not affect continuous coverage rules for pregnant and postpartum people or for children under 19. These changes take effect two years after the bill becomes law.

The federal government would build a system to track savings from these asset checks within two years. States would have to submit public reports on how many renewals and asset checks they do and how many applicants are approved. If a state does not follow the rules, it could be required to carry out a corrective action plan.

Key points

• Who is affected: All Medicaid applicants and people renewing coverage in every state and territory; exceptions for continuous coverage for pregnant/postpartum people and children under 19.
• What changes: States must verify assets electronically and apply a resources limit alongside income rules; federal tracking and public reporting are required.
• When: Asset verification systems start after a one-year phase-in; the resources test starts two years after the bill becomes law; states may request up to a one-year delay for hardship.