Bill Text: MI HB5386 | 2017-2018 | 99th Legislature | Introduced
Bill Title: Human services; other; eligibility requirements for Medicaid and supplemental nutrition assistance (SNAP) programs; enhance. Creates new act.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-01-11 - Bill Electronically Reproduced 01/10/2018 [HB5386 Detail]
Download: Michigan-2017-HB5386-Introduced.html
HOUSE BILL No. 5386
January 10, 2018, Introduced by Reps. LaSata, Kelly, Webber, Cole, Victory, Sheppard, Vaupel, Canfield, Runestad, Lucido, Cox, Theis, Tedder, Garcia and Lilly and referred to the Committee on Appropriations.
A bill to provide for eligibility for certain assistance
programs; and to provide for the powers and responsibilities for
certain state departments and agencies.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. (1) This act shall be known and may be cited as "An
act to restore hope, opportunity, and prosperity for everyone" or
the "HOPE act".
(2) As used in this act:
(a) "Department" means the department of health and human
services.
(b) "Food assistance program" means the food assistance
program administered by the department under the social welfare
act, 1939 PA 380, MCL 4001.1 to 400.119b.
(c) "Medical assistance program" means the medical assistance
program administered by the department under the social welfare
act, 1939 PA 280, MCL 400.1 to 401.119b.
Sec. 2. (1) Before awarding assistance under the medical
assistance program or the food assistance program, the department
shall verify the eligibility information of each applicant.
(2) Verification of the eligibility information by the
department under subsection (1) must include, but is not limited
to, a review of all of the following:
(a) Earned and unearned income.
(b) Employment status and changes in employment.
(c) Immigration status.
(d) Residency status, including a nationwide best-address
source to verify individuals are residents of this state.
(e) Enrollment status in other state-administered public
assistance programs.
(f) Financial resources.
(g) Incarceration status.
(h) Death records.
(i) Enrollment status in public assistance programs outside of
this state.
(j) Potential identity fraud or identity theft.
(3) The department shall sign a memorandum of understanding
with any department, agency, or division to obtain information
required for review under subsection (2).
(4) The department may contract with 1 or more independent
vendors to obtain or provide information required for review under
subsection (2).
(5) This section does not prohibit the department from
receiving, reviewing, or verifying additional information related
to eligibility not described in this section or from contracting
with 1 or more independent vendors to obtain or provide additional
information not described in this section.
Sec. 3. (1) On at least a quarterly basis, the department
shall receive and review information from various appropriate
sources as determined by the department concerning individuals
enrolled in the medical assistance program or the food assistance
program that indicates a change in circumstances that may affect
eligibility.
(2) The information provided to the department under
subsection (1) shall include, but is not limited to, all of the
following:
(a) Earned and unearned income.
(b) Employment status and changes in employment.
(c) Residency status.
(d) Enrollment status in other state-administered public
assistance programs.
(e) Financial resources.
(f) Incarceration status.
(g) Death records.
(h) Lottery winnings.
(i) Enrollment status in public assistance programs outside of
this state.
(3) The department shall sign a memorandum of understanding
with any department, agency, or division to obtain information
described in subsection (2).
(4) The department may contract with 1 or more independent
vendors to obtain or provide information described in subsection
(2).
(5) The department shall explore joining a multistate
cooperative to identify individuals who are also enrolled in public
assistance programs outside of this state, including the National
Accuracy Clearinghouse.
(6) This section does not prohibit the department from
receiving or reviewing additional information related to
eligibility not described in this section or from contracting with
1 or more independent vendors to obtain or provide additional
information not described in this section.
(7) If the department receives information concerning an
individual enrolled in the medical assistance program or the food
assistance program that indicates a change in circumstances that
may affect eligibility, the department shall review the
individual's case and proceed as follows:
(a) If a review of the information does not result in the
department finding a discrepancy or change in an individual's
circumstances that may affect eligibility, the department shall
take no further action.
(b) If a review of the information results in the department
finding a discrepancy or change in an individual's circumstances
that may affect eligibility, the department shall promptly conduct
an eligibility redetermination as provided in subsections (8), (9),
and (10).
(8) The department shall provide written notice to the
individual that describes in sufficient detail the circumstances of
the discrepancy or change, the manner in which the individual may
respond, and the consequence of failing to respond. The individual
has 10 business days, or the minimum period of time required by
state or federal law, to respond in an attempt to resolve the
discrepancy or change. The explanation provided by the individual
shall be given in writing. After receiving the explanation, the
department may request additional information or documentation if
the department determines that there is a risk of fraud,
misrepresentation, or inadequate documentation.
(9) As provided in subsection (8), the department shall give
the individual an opportunity to explain a discrepancy or change. A
self-declaration by an individual is not an acceptable explanation.
(10) If the individual does not respond to the notice provided
under subsection (8) in the time period provided, the department
shall discontinue medical assistance and food assistance for
failure to cooperate and shall provide notice of intent to
discontinue medical assistance and food assistance. Eligibility for
medical assistance or food assistance shall not be established or
reestablished until the discrepancy or change has been resolved.
(11) If an individual responds to the notice and disagrees
with the finding after the department's investigation, the
department shall reinvestigate the matter. If the department finds
that there has been an error, the department shall take immediate
action to correct the error and no further action shall be taken on
the matter. If, after the department reinvestigates the matter, the
department determines that there is no error, the department shall
determine the effect on the individual's case and take appropriate
action. The department shall give written notice of its action to
the individual.
(12) If the individual agrees with the finding, the department
shall determine the effect on the individual's case and take
appropriate action. The department shall give written notice of its
action to the individual. The department shall not discontinue
medical assistance or food assistance upon finding a discrepancy or
change in circumstances until the individual has been given notice
of the discrepancy or change in circumstances and the opportunity
to respond as required under this section.
Sec. 4. (1) Before awarding assistance under the medical
assistance program or the food assistance program, the department
shall require applicants to complete an identity authentication
process to confirm that the applicant owns the identity presented
in the application.
(2) The identity authentication process shall be conducted
through a knowledge-based quiz consisting of financial questions,
personal questions, or both. The quiz must attempt to accommodate
nonbanked or underbanked applicants who do not have an established
credit history.
(3) The identity authentication process shall be available to
be submitted through multiple channels, including online, in
person, or via telephone.
Sec. 5. The department shall provide information obtained
under sections 2 to 4 to the office of inspector general for cases
of suspected fraud.
Sec. 6. The department shall not seek, apply for, accept,
enforce, or renew any waiver of requirements established under 7
USC 2015(o).
Sec. 7. The resource limit standards of the food assistance
program must not exceed the standards specified in 7 USC
2014(g)(1), unless expressly required by federal law. Categorical
eligibility exempting households from these resource limits shall
not be granted for any noncash, in-kind, or other benefit, unless
expressly required by federal law.
Sec. 8. The department shall not apply gross income standards
for food assistance higher than the standards specified in 7 USC
2014(c) unless expressly required by federal law. Categorical
eligibility exempting households from this income standard shall
not be granted for any noncash, in-kind, or other benefit, unless
expressly required by federal law.
Sec. 9. (1) The department shall promulgate rules necessary to
carry out the purpose of this act.
(2) Six months after the effective date of this act and
annually after that, the department shall publish a written report
detailing the impact of sections 2 to 4, including the number of
cases reviewed, the number of cases closed, the number of fraud
investigation referrals, and the amount of savings and cost
avoidance that have resulted from implementation of this act.
Enacting section 1. This act takes effect 90 days after the
date it is enacted into law.
