Better Accounting for Medicaid Costs Act of 2016

To amend title XI of the Social Security Act to require the Secretary of Health and Human Services to follow rulemaking procedures for costly Medicaid subregulatory policies. 1. Short title This Act may be cited as the Better Accounting for Medicaid Costs Act of 2016 2. Requiring rulemaking for costly Medicaid subregulatory policies (a) In general Section 1102 of the Social Security Act ( 42 U.S.C. 1302 (c) Medicaid subregulatory policies (1) Effect on annual government expenditures Before any Medicaid subregulatory policy (as defined in paragraph (4)) may be issued, the Secretary shall determine the extent to which such policy, with respect to each year in the 10-year period beginning on the proposed effective date for such policy, is projected to result in— (A) an increase in total estimated expenditures by States under title XIX for such year, as compared to the estimated expenditures by States under such title for such year if such policy were not issued; or (B) an increase in the estimated expenditures by the Federal Government under such title for such year, as compared to the estimated expenditures by the Federal Government under such title for such year if such policy were not issued. (2) Rulemaking for certain costly policies If the Secretary determines under paragraph (1) that a Medicaid subregulatory policy, with respect to any year for which such determination is made, is projected to result in— (A) an increase described in subparagraph (A) of such paragraph of at least $50,000,000; or (B) an increase described in subparagraph (B) of such paragraph of at least $100,000,000; the Secretary may implement such policy only through notice and comment rulemaking under section 553 of title 5, United States Code. (3) Inclusion of estimated expenditures in issuance of subregulatory policies If the Secretary issues a Medicaid subregulatory policy other than through rulemaking, the Secretary shall include in such issuance a specification of the estimated expenditures determined under subparagraphs (A) and (B) of paragraph (1) with respect to such policy. (4) Medicaid subregulatory policy defined (A) In general In this subsection, the term Medicaid subregulatory policy (B) Exception Such term does not include any guidance or other statement of policy that relates to the management or personnel of the Department of Health and Human Services. . (b) Effective date The amendments made by subsection (a) shall apply with respect to policies issued on or after the date of the enactment of this Act.

Summary: Better Accounting for Medicaid Costs Act of 2016 This bill amends title XI (General Provisions) of the Social Security Act to require the Centers for Medicare & Medicaid Services (CMS) to follow rulemaking procedures with respect to certain Medicaid subregulatory policies. Before issuing a Medicaid subregulatory policy, CMS must determine the extent to which the policy is projected, with respect to each year in a 10-year period, to increase state or federal expenditures under the Medicaid program. If the policy is projected to increase expenditures by an amount exceeding a specified threshold, CMS may implement the policy only through notice and comment rulemaking.