This bill prevents the federal government from paying for the administrative costs that states incur when running health programs for undocumented immigrants. In other words, if a state decides to offer health benefits to people who aren't legally authorized to be in the country, the federal Medicaid program won't help pay for the paperwork, staff, and systems needed to run that program—though it can still help pay for the actual medical care itself.

The bill does allow federal funding to continue supporting the costs of setting up systems that verify people are eligible for Medicaid and aren't undocumented, since that's considered a compliance measure. However, it requires the federal government to study how states are handling this situation within six months. That study needs to look at how states are separating costs between their regular Medicaid programs and their programs for undocumented immigrants, what methods they use to make sure they're following the rules, and how they're paying for these immigrant health programs without federal administrative funding—such as through provider taxes or money transfers between government agencies.

The bill also asks for an analysis of whether undocumented immigrants are getting prescription drugs through federal discount programs and whether this affects drug prices. Essentially, this is a budget measure that shifts more of the financial burden to states if they choose to provide health coverage to undocumented immigrants, while still allowing federal funding for the actual medical services provided.

Protect Medicaid Act

Cassidy, Bill

Protect Medicaid Act This bill prohibits federal payment under Medicaid for the administrative costs of providing health benefits to noncitizens who are ineligible for Medicaid based on their immigration status. The Department of Health and Human Services must report on specified information regarding states that provide health benefits to such individuals.