II 

117TH CONGRESS 

2D SESSION S. 3917 

To apply the Medicaid asset verification program to all applicants for, and 

recipients of, medical assistance in all States and territories, and for 

other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 24, 2022 

Mr. INHOFE (for himself, Mr. BRAUN, Mrs. BLACKBURN, Mr. KENNEDY, Mr. 

PAUL, Mr. SCOTT of Florida, and Mr. LANKFORD) introduced the following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To apply the Medicaid asset verification program to all applicants for, and recipients of, medical assistance in all 

States and territories, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Protecting Medicaid 

5 Beneficiaries Act of 2022’’. 

6 SEC. 2. FINDINGS. 

7 Congress makes the following findings: 


pbinns on DSKJLVW7X2PROD with BILLS
2 

•S 3917 IS

1 (1) Recent estimates show that the Social Secu2 rity program loses over $4,000,000,000 per year to 

3 fraud. 

4 (2) In fiscal year 2020, the Medicaid program 

5 lost $86,490,000,000 in improper payments and the 

6 Medicare program lost another almost 

7 $43,000,000,000. 

8 (3) The fiscal year 2020 national Children’s 

9 Health Insurance Program (CHIP) improper pay10 ment rate estimate is 27 percent, representing 

11 $4,780,000,000 in improper payments. 

12 (4) Millions of Americans experience homeless13 ness, hunger, or lack of healthcare coverage. Yet, 

14 our country annually wastes more than 

15 $130,000,000,000 in the very programs that were 

16 designed to correct these serious problems, dem17 onstrating that our system is failing those who need 

18 it the most. 

19 SEC. 3. APPLICATION OF MEDICAID ASSET TEST TO ALL AP20 PLICANTS FOR, AND RECIPIENTS OF, MED21 ICAL ASSISTANCE IN ALL STATES AND TERRI22 TORIES. 

23 (a) IN GENERAL.—Section 1940 of the Social Secu24 rity Act (42 U.S.C. 1396w) is amended— 


pbinns on DSKJLVW7X2PROD with BILLS
3 

•S 3917 IS

1 (1) in subsection (a), by striking paragraph (4); 

2 and 

3 (2) in subsection (b)(1)(A), by striking ‘‘on the 

4 basis of being aged, blind, or disabled’’. 

5 (b) RULES.—The Secretary of Health and Human 

6 Services shall promulgate such rules as are necessary to 

7 implement the amendments made by subsection (a). 

8 (c) EFFECTIVE DATE.— 

9 (1) IN GENERAL.—Subject to paragraph (2), 

10 the amendments made by subsection (a) shall take 

11 effect on the date that is 2 years after the date of 

12 enactment of this Act. 

13 (2) PHASE-IN OF IMPLEMENTATION.— 

14 (A) IN GENERAL.—During the 2-year pe15 riod that begins on the date of enactment of 

16 this Act, the Secretary of Health and Human 

17 Services shall require States to submit and im18 plement a plan for an electronic asset 

19 verification program that meets the require20 ments under section 1940 of the Social Security 

21 Act (as amended by subsection (a)). 

22 (B) IMPLEMENTATION BEFORE EFFECTIVE

23 DATE.—Nothing in this subsection or section 

24 1940 of the Social Security Act (42 U.S.C. 

25 1396w) shall be construed as prohibiting a 


pbinns on DSKJLVW7X2PROD with BILLS
4 

•S 3917 IS

1 State from implementing an asset verification 

2 program that meets the requirements of such 

3 section (as amended by subsection (a)) in ad4 vance of the effective date specified under para5 graph (1). 

6 (C) DELAY OF EFFECTIVE DATE.—If a 

7 State requests a delay of the effective date 

8 specified under paragraph (1) on the basis of 

9 ongoing economic hardship limitations, as de10 termined by the chief executive officer of the 

11 State, the Secretary of Health and Human 

12 Services may delay such effective date for up to 

13 365 days. 

14 SEC. 4. MEDICAID RESOURCES ELIGIBILITY REQUIRE15 MENT. 

16 (a) IN GENERAL.—Section 1902(e)(14)(C) of the So17 cial Security Act (42 U.S.C. 1396a(e)(14)(C)) is amended 

18 to read as follows— 

19 ‘‘(C) RESOURCES TEST REQUIREMENT.— 

20 ‘‘(i) IN GENERAL.—Notwithstanding 

21 any other provision of this title, in the case 

22 of an individual with respect to whom a de23 termination of income eligibility for med24 ical assistance under the State plan or 

25 under any waiver of such plan is required, 


pbinns on DSKJLVW7X2PROD with BILLS
5 

•S 3917 IS

1 the State shall also apply a resources eligi2 bility test that meets the requirement of 

3 clause (ii). 

4 ‘‘(ii) REQUIREMENT.—A State re5 sources eligibility test meets the require6 ment of this clause if the test precludes eli7 gibility for any individual whose resources 

8 (as determined under section 1613 for pur9 poses of the supplemental security income 

10 program) exceed the maximum amount of 

11 resources that an individual may have and 

12 obtain benefits under that program, or 

13 such amount as the State shall establish.’’. 

14 (b) NO EFFECT ON CONTINUOUS ELIGIBILITY FOR

15 PREGNANT WOMEN.—Section 1902(e)(6) of the Social Se16 curity Act (42 U.S.C. 1396a(e)(6)) is amended by insert17 ing ‘‘or resources’’ after ‘‘income’’ each place it appears. 

18 (c) EFFECTIVE DATE.— 

19 (1) IN GENERAL.—Subject to paragraph (2), 

20 the amendment made by subsection (a) shall take ef21 fect on the date that is 2 years after the date of en22 actment of this Act. 

23 (2) RULE FOR CHANGES REQUIRING STATE

24 LEGISLATION.—In the case of a State plan under 

25 title XIX of the Social Security Act (42 U.S.C. 1396 


pbinns on DSKJLVW7X2PROD with BILLS
6 

•S 3917 IS

1 et seq.) which the Secretary of Health and Human 

2 Services determines requires State legislation (other 

3 than legislation appropriating funds) in order for the 

4 State plan to meet the additional requirement im5 posed by the amendment made by subsection (a), 

6 the State plan shall not be regarded as failing to 

7 comply with the requirements of such title solely on 

8 the basis of its failure to meet this additional re9 quirement before the first day of the first calendar 

10 quarter beginning after the close of the first regular 

11 session of the State legislature that begins after the 

12 effective date of this Act. For purposes of the pre13 vious sentence, in the case of a State that has a 2- 

14 year legislative session, each year of such session 

15 shall be deemed to be a separate regular session of 

16 the State legislature. 

17 SEC. 5. ALLOWING STATES TO RETAIN SAVINGS FROM 

18 ASSET VERIFICATION PROGRAM AND RE19 SOURCES ELIGIBILITY REQUIREMENTS. 

20 (a) IN GENERAL.—For each of the first 2 years fol21 lowing the date that is 2 years after the date of enactment 

22 of this Act, the Secretary of Health and Human Services 

23 shall pay to the State an amount equal to the savings (as 

24 estimated by the Secretary) in Federal expenditures that 


pbinns on DSKJLVW7X2PROD with BILLS
7 

•S 3917 IS

1 are attributable to the State meeting the requirements im2 posed by the amendments made by sections 3 and 4. 

3 (b) USE OF FUNDS.—A State that receives a pay4 ment under subsection (a) shall use the funds received 

5 under such payment to support enrollment in, and the 

6 conduct of, programs for maternal and child health under 

7 the State Medicaid program, or for such other purpose 

8 in support of the State Medicaid program as the Secretary 

9 of Health and Human Services shall approve. 

10 SEC. 6. REQUIRING CMS TO TRACK STATE ASSET 

11 VERIFICATION PROGRAMS. 

12 (a) TRACKING ASSET VERIFICATION PROGRAM SAV13 INGS.—No later than 3 years after the date of enactment 

14 of this Act, the Secretary of Health and Human Services, 

15 acting through the Centers for Medicare & Medicaid Serv16 ices, shall create a Federal tracking system of the savings 

17 in Federal expenditures on the Medicaid program under 

18 title XIX of the Social Security Act (42 U.S.C. 1396 et 

19 seq.) that are associated with the asset verification pro20 gram requirement added under section 3(a). 

21 (b) REPORTS TO CONGRESS.—Beginning in the fifth 

22 year after the date of enactment of this Act, the Adminis23 trator of the Centers for Medicare & Medicaid Services 

24 shall issue biannual reports to Congress detailing the per25 formance of State Medicaid asset verification programs 


pbinns on DSKJLVW7X2PROD with BILLS
8 

•S 3917 IS

1 during the applicable reporting period. Each such report 

2 shall include— 

3 (1) an overview of the savings, both pre- and 

4 post-reporting period, attributed to such programs; 

5 and 

6 (2) any material changes to the composition of 

7 the State Medicaid populations as a result of such 

8 programs. 

9 SEC. 7. GAO REPORT TO CONGRESS ON THE EFFICACY OF 

10 STRENGTHENING THE FISCAL INTEGRITY OF 

11 THE MEDICAID PROGRAM. 

12 No sooner than 5 years after the date of enactment 

13 of this Act, the Comptroller General of the United States 

14 shall submit to the Committee on Finance of the Senate 

15 and the Committee on Energy and Commerce of the 

16 House of Representatives a report that assesses the effi17 cacy of State asset verification programs that meet the 

18 requirements of section 1940 of the Social Security Act 

19 (42 U.S.C. 1396w) (as amended by section 3(a)). Such 

20 report shall include— 

21 (1) an overview of Medicaid enrollment before 

22 and after the implementation of the changes to the 

23 asset verification system requirements under such 

24 section 1940; 


pbinns on DSKJLVW7X2PROD with BILLS
9 

•S 3917 IS

1 (2) an overview of Medicaid spending before 

2 and after the implementation of such changes; 

3 (3) information on what is known about the 

4 number of individuals who applied for Medicaid or 

5 who applied for redetermination of Medicaid and 

6 were deemed ineligible due to their financial cir7 cumstances (income and resources) after the imple8 mentation of such changes; and 

9 (4) any additional recommendations for further 

10 changes to the Medicaid asset verification program 

11 requirements under title XIX of the Social Security 

12 Act (42 U.S.C. 1396 et seq.). 

Æ 


pbinns on DSKJLVW7X2PROD with BILLS