Laws: Cases and Codes : U.S. Code : Title 42 : Section 1396o


   
U.S. Code as of: 01/19/04
Section 1396o. Use of enrollment fees, premiums, deductions, cost sharing, and similar charges

    (a) Imposition of certain charges under plan in case of individuals
      described in section 1396a(a)(10)(A) or (E)
      Subject to subsection (g) of this section, the State plan shall
    provide that in the case of individuals described in subparagraph
    (A) or (E)(i) of section 1396a(a)(10) of this title who are
    eligible under the plan - 
        (1) no enrollment fee, premium, or similar charge will be
      imposed under the plan (except for a premium imposed under
      subsection (c) of this section);
        (2) no deduction, cost sharing or similar charge will be
      imposed under the plan with respect to - 
          (A) services furnished to individuals under 18 years of age
        (and, at the option of the State, individuals under 21, 20, or
        19 years of age, or any reasonable category of individuals 18
        years of age or over),
          (B) services furnished to pregnant women, if such services
        relate to the pregnancy or to any other medical condition which
        may complicate the pregnancy (or, at the option of the State,
        any services furnished to pregnant women),
          (C) services furnished to any individual who is an inpatient
        in a hospital, nursing facility, intermediate care facility for
        the mentally retarded, or other medical institution, if such
        individual is required, as a condition of receiving services in
        such institution under the State plan, to spend for costs of
        medical care all but a minimal amount of his income required
        for personal needs,
          (D) emergency services (as defined by the Secretary), family
        planning services and supplies described in section
        1396d(a)(4)(C) of this title, or
          (E) services furnished to an individual who is receiving
        hospice care (as defined in section 1396d(o) of this title);
        and

        (3) any deduction, cost sharing, or similar charge imposed
      under the plan with respect to other such individuals or other
      care and services will be nominal in amount (as determined by the
      Secretary in regulations which shall, if the definition of
      "nominal" under the regulations in effect on July 1, 1982 is
      changed, take into account the level of cash assistance provided
      in such State and such other criteria as the Secretary determines
      to be appropriate); except that a deduction, cost-sharing, or
      similar charge of up to twice the nominal amount established for
      outpatient services may be imposed by a State under a waiver
      granted by the Secretary for services received at a hospital
      emergency room if the services are not emergency services
      (referred to in paragraph (2)(D)) and the State has established
      to the satisfaction of the Secretary that individuals eligible
      for services under the plan have actually available and
      accessible to them alternative sources of nonemergency,
      outpatient services.
    (b) Imposition of certain charges under plan in case of individuals
      other than those described in section 1396a(a)(10)(A) or (E)
      The State plan shall provide that in the case of individuals
    other than those described in subparagraph (A) or (E) of section
    1396a(a)(10) of this title who are eligible under the plan - 
        (1) there may be imposed an enrollment fee, premium, or similar
      charge, which (as determined in accordance with standards
      prescribed by the Secretary) is related to the individual's
      income,
        (2) no deduction, cost sharing, or similar charge will be
      imposed under the plan with respect to - 
          (A) services furnished to individuals under 18 years of age
        (and, at the option of the State, individuals under 21, 20, or
        19 years of age, or any reasonable category of individuals 18
        years of age or over),
          (B) services furnished to pregnant women, if such services
        relate to the pregnancy or to any other medical condition which
        may complicate the pregnancy (or, at the option of the State,
        any services furnished to pregnant women),
          (C) services furnished to any individual who is an inpatient
        in a hospital, nursing facility, intermediate care facility for
        the mentally retarded, or other medical institution, if such
        individual is required, as a condition of receiving services in
        such institution under the State plan, to spend for costs of
        medical care all but a minimal amount of his income required
        for personal needs,
          (D) emergency services (as defined by the Secretary), family
        planning services and supplies described in section
        1396d(a)(4)(C) of this title, or
          (E) services furnished to an individual who is receiving
        hospice care (as defined in section 1396d(o) of this title);
        and

        (3) any deduction, cost sharing, or similar charge imposed
      under the plan with respect to other such individuals or other
      care and services will be nominal in amount (as determined by the
      Secretary in regulations which shall, if the definition of
      "nominal" under the regulations in effect on July 1, 1982 is
      changed, take into account the level of cash assistance provided
      in such State and such other criteria as the Secretary determines
      to be appropriate); except that a deduction, cost-sharing, or
      similar charge of up to twice the nominal amount established for
      outpatient services may be imposed by a State under a waiver
      granted by the Secretary for services received at a hospital
      emergency room if the services are not emergency services
      (referred to in paragraph (2)(D)) and the State has established
      to the satisfaction of the Secretary that individuals eligible
      for services under the plan have actually available and
      accessible to them alternative sources of nonemergency,
      outpatient services.
    (c) Imposition of monthly premium; persons affected; amount;
      prepayment; failure to pay; use of funds from other programs
      (1) The State plan of a State may at the option of the State
    provide for imposing a monthly premium (in an amount that does not
    exceed the limit established under paragraph (2)) with respect to
    an individual described in subparagraph (A) or (B) of section
    1396a(l)(1) of this title who is receiving medical assistance on
    the basis of section 1396a(a)(10)(A)(ii)(IX) of this title and
    whose family income (as determined in accordance with the
    methodology specified in section 1396a(l)(3) of this title) equals
    or exceeds 150 percent of the income official poverty line (as
    defined by the Office of Management and Budget, and revised
    annually in accordance with section 9902(2) of this title)
    applicable to a family of the size involved.
      (2) In no case may the amount of any premium imposed under
    paragraph (1) exceed 10 percent of the amount by which the family
    income (less expenses for the care of a dependent child) of an
    individual exceeds 150 percent of the line described in paragraph
    (1).
      (3) A State shall not require prepayment of a premium imposed
    pursuant to paragraph (1) and shall not terminate eligibility of an
    individual for medical assistance under this subchapter on the
    basis of failure to pay any such premium until such failure
    continues for a period of not less than 60 days. The State may
    waive payment of any such premium in any case where the State
    determines that requiring such payment would create an undue
    hardship.
      (4) A State may permit State or local funds available under other
    programs to be used for payment of a premium imposed under
    paragraph (1). Payment of a premium with such funds shall not be
    counted as income to the individual with respect to whom such
    payment is made.
    (d) Premiums for qualified disabled and working individuals
      described in section 1396d(s)
      With respect to a qualified disabled and working individual
    described in section 1396d(s) of this title whose income (as
    determined under paragraph (3) of that section) exceeds 150 percent
    of the official poverty line referred to in that paragraph, the
    State plan of a State may provide for the charging of a premium
    (expressed as a percentage of the medicare cost-sharing described
    in section 1396d(p)(3)(A)(i) of this title provided with respect to
    the individual) according to a sliding scale under which such
    percentage increases from 0 percent to 100 percent, in reasonable
    increments (as determined by the Secretary), as the individual's
    income increases from 150 percent of such poverty line to 200
    percent of such poverty line.
    (e) Prohibition of denial of services on basis of individual's
      inability to pay certain charges
      The State plan shall require that no provider participating under
    the State plan may deny care or services to an individual eligible
    for such care or services under the plan on account of such
    individual's inability to pay a deduction, cost sharing, or similar
    charge. The requirements of this subsection shall not extinguish
    the liability of the individual to whom the care or services were
    furnished for payment of the deduction, cost sharing, or similar
    charge.
    (f) Charges imposed under waiver authority of Secretary
      No deduction, cost sharing, or similar charge may be imposed
    under any waiver authority of the Secretary, except as provided in
    subsections (a)(3) and (b)(3) of this section, unless such waiver
    is for a demonstration project which the Secretary finds after
    public notice and opportunity for comment - 
        (1) will test a unique and previously untested use of
      copayments,
        (2) is limited to a period of not more than two years,
        (3) will provide benefits to recipients of medical assistance
      which can reasonably be expected to be equivalent to the risks to
      the recipients,
        (4) is based on a reasonable hypothesis which the demonstration
      is designed to test in a methodologically sound manner, including
      the use of control groups of similar recipients of medical
      assistance in the area, and
        (5) is voluntary, or makes provision for assumption of
      liability for preventable damage to the health of recipients of
      medical assistance resulting from involuntary participation.
    (g) Individuals provided medical assistance under section
      1396a(a)(10)(A)(ii)(XV) or (XVI)
      With respect to individuals provided medical assistance only
    under subclause (XV) or (XVI) of section 1396a(a)(10)(A)(ii) of
    this title - 
        (1) a State may (in a uniform manner for individuals described
      in either such subclause) - 
          (A) require such individuals to pay premiums or other
        cost-sharing charges set on a sliding scale based on income
        that the State may determine; and
          (B) require payment of 100 percent of such premiums for such
        year in the case of such an individual who has income for a
        year that exceeds 250 percent of the income official poverty
        line (referred to in subsection (c)(1) of this section)
        applicable to a family of the size involved, except that in the
        case of such an individual who has income for a year that does
        not exceed 450 percent of such poverty line, such requirement
        may only apply to the extent such premiums do not exceed 7.5
        percent of such income; and

        (2) such State shall require payment of 100 percent of such
      premiums for a year by such an individual whose adjusted gross
      income (as defined in section 62 of the Internal Revenue Code of
      1986) for such year exceeds $75,000, except that a State may
      choose to subsidize such premiums by using State funds which may
      not be federally matched under this subchapter.

    In the case of any calendar year beginning after 2000, the dollar
    amount specified in paragraph (2) shall be increased in accordance
    with the provisions of section 415(i)(2)(A)(ii) of this title.



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