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GAO-13-787R 1 (2013-07-23)

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Gl           O        U.S. GOVERNMENT ACCOUNTABILITY OFFICE
441 G St. N.W.
Washington, DC 20548


B-324958


July 23, 2013

The Honorable Tom Harkin
Chairman
The Honorable Lamar Alexander
Ranking Member
Committee on Health, Education, Labor, and Pensions
United States Senate

The Honorable Fred Upton
Chairman
The Honorable Henry A. Waxman
Ranking Member
Committee on Energy and Commerce
House of Representatives

Subject: Department of Health and Human Services, Centers for Medicare & Medicaid Services:
        Medicaid and Children's Health Insurance Programs: Essential Health Benefits in
        Alternative Benefit Plans, Eligibility Notices, Fair Hearing and Appeal Processes, and
        Premiums and Cost Sharing; Exchanges: Eligibility and Enrollment

Pursuant to section 801 (a)(2)(A) of title 5, United States Code, this is our report on a major rule
promulgated by the Department of Health and Human Services, Centers for Medicare &
Medicaid Services (CMS) entitled Medicaid and Children's Health Insurance Programs:
Essential Health Benefits in Alternative Benefit Plans, Eligibility Notices, Fair Hearing and
Appeal Processes, and Premiums and Cost Sharing; Exchanges: Eligibility and Enrollment
(RIN: 0938-AR04). We received the rule on July 10, 2013. It was published in the Federal
Register as a final rule on July 15, 2013. 78 Fed. Reg. 42,160.

The final rule implements provisions of the Patient Protection and Affordable Care Act and the
Health Care and Education Reconciliation Act of 2010 (collectively referred to as the Affordable
Care Act). This final rule finalizes new Medicaid eligibility provisions; finalizes changes related
to electronic Medicaid and the Children's Health Insurance Program (CHIP) eligibility notices
and delegation of appeals; modernizes and streamlines existing Medicaid eligibility rules;
revises CHIP rules relating to the substitution of coverage to improve the coordination of CHIP
coverage with other coverage; and amends requirements for benchmark and benchmark-
equivalent benefit packages consistent with sections 1937 of the Social Security Act (which
CMS refers to as alternative benefit plans) to ensure that these benefit packages include
essential health benefits and meet certain other minimum standards. This rule also implements
specific provisions including those related to authorized representatives, notices, and
verification of eligibility for qualifying coverage in an eligible employer-sponsored plan for
Affordable Insurance Exchanges. The final rule also updates and simplifies the complex
Medicaid premium and cost sharing requirements, to promote the most effective use of


GAO-13-787R

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