S. 1720 — Due Process Continuity of Care Act

This section revises Medicaid exclusions in section 1905(a) of the Social Security Act (42 U.S.C. 1396d(a)) to authorize federal payments for medical assistance furnished to any individual while in custody pending disposition of charges (previously excluded or limited under the struck language), effective the first day of the first calendar quarter beginning 60 days after enactment. It makes a conforming amendment to state plan requirements in section 1902(a)(84)(A) (42 U.S.C. 1396a(a)(84)(A)), effective January 2, 2026, under which states must not terminate (but may suspend) Medicaid eligibility for such individuals if the state elects the option under section 1905(a). (As background, federal Medicaid law prohibits payments for most services to inmates of public institutions but requires states to suspend rather than terminate coverage during incarceration to enable continuity upon release.)

This section directs the Secretary of Health and Human Services to award planning grants to states, selected to ensure geographic diversity, to prepare applications for providing medical assistance under the state Medicaid program (title XIX of the Social Security Act) to individuals eligible as a result of the amendment made by section 2(a)—generally, those in custody pending disposition of charges. Grants support (1) assessments of provider needs and capacity for such individuals, (2) infrastructure to recruit providers, provide training and technical assistance, and enable compliant electronic health record billing, and (3) quality-of-care measures including reporting and learning collaboratives; $50 million is authorized to be appropriated.