§2. Medicaid State plan requirement for determining residency and coverage for military families
This section establishes a new Medicaid state plan requirement, effective January 1, 2028, under which states must treat active duty relocated individuals (i.e., servicemembers relocated due to active duty, such retirees within 12 months, and dependents who were receiving or on a waiting list for home and community-based services (HCBS)) as residents eligible for medical assistance unless they opt out; maintain such individuals on any HCBS waiting list (i.e., for states with enrollment caps under Medicaid demonstration or waiver authority) until assessed, denied after fair hearing, or they opt off; and cover such assistance furnished in the relocation state. (As background, HCBS enable eligible individuals, primarily those with disabilities or long-term care needs, to receive care in home and community settings rather than institutions.) The section defines relevant terms; appropriates $1 million annually for FY2026 through FY2030 to HHS for implementation; and applies the amendments on the date of enactment, with a delay permitted until the first calendar quarter after the first regular state legislative session ending within one year of enactment if state legislation is required.