SB-0897, As Passed Senate, April 19, 2018

SUBSTITUTE FOR

SENATE BILL NO. 897

A bill to amend 1939 PA 280, entitled

"The social welfare act,"

(MCL 400.1 to 400.119b) by adding sections 107a and 107b.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 107a. (1) The purpose of adding workforce engagement

requirements to the medical assistance program as provided in

section 107b is to assist, encourage, and prepare an able-bodied

adult for a life of self-sufficiency and independence from

government interference.

(2) As used in this section and section 107b:

(a) "Able-bodied adult" means an individual at least 19 to 64

years of age who is not pregnant and who does not have a disability

that makes him or her eligible for medical assistance under this

act.

(b) "Caretaker" means a parent or an individual who is taking

care of a child in the absence of a parent or an individual caring

for a disabled individual as described in section 107b(1)(f)(v). A

caretaker is not subject to the workforce engagement requirements

established under section 107b if he or she is not a medical

assistance recipient under section 105 or 105d.

1968 PA 293, MCL 722.1 to 722.6, who lives with a parent or

caretaker, and who is either of the following:

(i) Under the age of 18.

(ii) Age 18 and a full-time high school student.

(d) "Good cause temporary exemption" means any of the

following:

(i) The recipient experiences the birth or death of a family

member living with him or her.

(ii) The recipient experiences severe inclement weather that

is out of his or her control.

(iii) The recipient has a family emergency or other life-

changing event, including, but not limited to, divorce or domestic

violence.

(iv) The recipient experiences a temporary illness or injury.

(e) "Medically frail" means that term as described in 42 CFR

440.315(f).

(f) "Qualifying activity" means any of the following:

(i) Employment or self-employment, or having income consistent

with being employed or self-employed.

(ii) Education directly related to employment, including, but

not limited to, high school equivalency test preparation program

and postsecondary education.

(iii) Job training directly related to employment.

(iv) Vocational training directly related to employment.

(v) Unpaid workforce engagement directly related to

employment, including, but not limited to, an internship.

(vi) Tribal employment programs.

(vii) Participation in substance use disorder treatment.

(g) "Recipient" means an individual receiving medical

assistance under this act.

(h) "Substance use disorder" means that term as defined in

section 100d of the mental health code, 1974 PA 258, MCL 330.1100d.

(i) "Unemployment benefits" means benefits received under the

Michigan employment security act, 1936 (Ex Sess) PA 1, MCL 421.1 to

421.75.

Sec. 107b. (1) No later than October 1, 2018, the department

must apply for a waiver under section 1115 of the social security

act, 42 USC 1315, and submit subsequent waivers to prohibit and

prevent a lapse in the workforce engagement requirements as a

condition of receiving medical assistance under this act,

including, but not limited to, sections 105 and 105d. The waiver

must be a request to allow for all of the following:

(a) A requirement of 29 hours average a week per month of

qualifying activities or a combination of any qualifying

activities, to count toward the workforce engagement requirement

under this section.

(b) A requirement that able-bodied recipients verify that they

are meeting the workforce engagement requirements by the fifth of

each month for the previous month's qualifying activities and

verify family income quarterly through MiBridges or any other

subsequent system. A recipient must report a change in family

income within 10 days after learning of the change. If a recipient

fails to meet the qualifying activities or fails to report a change

in family income or knowingly makes a false statement in complying

with this requirement, a recipient is given 1 warning that he or

she must become compliant with the workforce engagement

requirements not later than 30 days after the warning is issued. If

the recipient does not become compliant no later than 30 days after

the warning is issued, he or she is prohibited from receiving

medical assistance for 1 year.

reporting cycle, shall give consideration for an individual who

does not meet the average hours of workforce engagement requirement

by up to 40 hours due to a good cause temporary exemption.

(d) To count toward the workforce engagement requirements,

substance use disorder treatment that is court-ordered or

prescribed by a licensed medical professional that impedes the

ability to meet the workforce engagement requirements.

(e) If a county's unemployment rate reaches 8.5%, allow a

recipient in that county to meet the workforce engagement

requirement in this section by actively seeking employment

according to the Michigan employment security act, 1936 (Ex Sess)

PA 1, MCL 421.1 to 421.75. If, only after a county's unemployment

rate has reached 8.5%, the county's unemployment rate subsequently

drops to 5.0%, the recipient must, again, meet the workforce

engagement requirements as required under this section.

(f) An exemption for a recipient who meets 1 or more of the

following conditions:

(i) A recipient who is the caretaker of a family member who is

under the age of 6 years. This exemption allows only 1 parent at a

time to be a caretaker, no matter how many children are being cared

for.

(ii) A recipient who is currently receiving temporary or

permanent long-term disability benefits from a private insurer or

from the government.

(iii) A recipient who is a full-time student, who is

emancipated or whose parents qualify for Medicaid, and who is

carrying 12 hours or more per semester or term. This includes a

student in a postsecondary institution.

(iv) A recipient who is pregnant.

(v) A recipient who is the caretaker of a dependent with a

disability which dependent needs full-time care based on a licensed

medical professional's order. This exemption is allowed 1 time per

household.

(vi) A recipient who is the caretaker of an incapacitated

individual even if the incapacitated individual is not a dependent

of the caretaker.

(vii) A recipient who has proven that he or she has met the

good cause temporary exemption.

(viii) A recipient who has been designated as medically frail.

Senate Bill No. 897 as amended April 19, 2018

(ix) A recipient who has a medical condition that results in a

work limitation according to a licensed medical professional's

order.

(x) A recipient who has been incarcerated within the last 6

months.

(xi) A recipient who is receiving unemployment benefits from

this state. This exemption applies during the period the recipient

received unemployment benefits and ends when the recipient is no

longer receiving unemployment benefits.

(xii) A recipient who is under 21 years of age who had

previously been in a foster care placement in this state.

(2) After the waiver requested under this section is approved,

the department must include<<, but is not limited to,>> all of the

following<<, as approved in the waiver,>> in its

implementation of the workforce engagement requirements under this

section:

(a) A requirement of 29 hours average a week per month of

qualifying activities or a combination of any qualifying activities

counts toward the workforce engagement requirement under this

section.

(b) A requirement that able-bodied recipients must verify that

they are meeting the workforce engagement requirements by the fifth

of each month for the previous month's qualifying activities and

verify family income quarterly through MiBridges or any other

subsequent system. A recipient must report a change in family

income within 10 days after learning of the change. If a recipient

fails to meet the qualifying activities or fails to report a change

in family income or knowingly makes a false statement in complying

with this requirement, a recipient is given 1 warning that he or

she must become compliant with the workforce engagement

requirements no later than 30 days after the warning is issued. If

the recipient does not become compliant no later than 30 days after

the warning is issued, he or she is prohibited from receiving

medical assistance for 1 year.

consideration for an individual who does not meet the average hours

of workforce engagement requirement by up to 40 hours due to a good

cause temporary exemption.

(d) To count toward the workforce engagement requirements,

substance use disorder treatment that is court-ordered or

prescribed by a licensed medical professional that impedes the

ability to meet the workforce engagement requirements.

(e) If a county's unemployment rate reaches 8.5%, a recipient

in that county is able to meet the workforce engagement requirement

in this section by actively seeking employment according to the

Michigan employment security act, 1936 (Ex Sess) PA 1, MCL 421.1 to

421.75. If, only after a county's unemployment rate has reached

8.5%, the county's unemployment rate subsequently drops to 5.0%,

the recipient must, again, meet the workforce engagement

requirements as required under this section.

(f) An exemption for a recipient who meets 1 or more of the

following conditions:

(i) A recipient who is the caretaker of a family member who is

under the age of 6 years. This exemption allows only 1 parent at a

time to be a caretaker, no matter how many children are being cared

for.

(ii) A recipient who is currently receiving temporary or

permanent long-term disability benefits from a private insurer or

from the government.

(iii) A recipient who is a full-time student, who is

emancipated or whose parents qualify for Medicaid, and who is

carrying 12 hours or more per semester or term. This includes a

student in a postsecondary institution.

(iv) A recipient who is pregnant.

(v) A recipient who is the caretaker of a dependent with a

disability which dependent needs full-time care based on a licensed

medical professional's order. This exemption is allowed 1 time per

household.

(vi) A recipient who is the caretaker of an incapacitated

individual even if the incapacitated individual is not a dependent

of the caretaker.

(vii) A recipient who has proven that he or she has met the

good cause temporary exemption.

(viii) A recipient who has been designated as medically frail.

(ix) A recipient who has a medical condition that results in a

work limitation according to a licensed medical professional's

order.

(x) A recipient who has been incarcerated within the last 6

months.

(xi) A recipient who is receiving unemployment benefits from

this state. This exemption applies during the period the recipient

received unemployment benefits and ends when the recipient is no

longer receiving unemployment benefits.

(xii) A recipient who is under 21 years of age who had

previously been in a foster care placement in this state.

(g) Meeting the workforce engagement requirements of this

section counts toward meeting the work requirements of other public

assistance.

(3) The department must first direct recipients to existing

resources for job training or other employment services, child care

assistance, transportation, or other supports. The department may

develop strategies for assisting recipients to meet workforce

engagement requirements under this section.

(4) Beginning October 1, 2018 and each year the department

submits a waiver to prohibit and prevent a lapse in the workforce

engagement requirements after that, the Medicaid director must

submit to the governor, the senate majority leader, and the speaker

of the house of representatives a letter confirming the submission

of the waiver request required under subsection (1).

(5) Beginning October 1, 2019, the department must execute a

survey to obtain the information needed to complete an evaluation

of the medical assistance program under sections 105 and 105d to

determine how many recipients have left the medical assistance

program and the Healthy Michigan program as a result of obtaining

employment and medical benefits.

(6) The department must execute a survey to obtain the

information needed to submit a report to the legislature beginning

October 1, 2019, and every October 1 after that, that shows

separately, for each of the following types of assistance, the

number of exemptions from workforce engagement requirements granted

to individuals in that year and the reason the exemptions were

granted:

(a) Medical assistance under section 105.

(b) Medical assistance under section 105d known as Healthy

Michigan.

(7) The department may enforce the provisions of this section

by conducting random audits of medical assistance recipients under

sections 105 and 105d who are required to meet the workforce

engagement requirements of this section. The first time a random

audit finds a medical assistance recipient noncompliant with this

section, that recipient has 1 chance to become compliant with the

section. If a recipient is found noncompliant a second or

subsequent time, the recipient is prohibited from receiving medical

assistance for 1 year.

(8) The department shall implement the requirements of this

section no later than October 1, 2019, and shall notify recipients

to whom the workforce engagement requirements described in this

section are likely to apply of the workforce engagement

requirements 90 days in advance.

(9) Beginning October 1, 2019, medical assistance applicants

who are not exempt from the workforce engagement requirements under

this section must be in compliance with this section. Beginning

October 1, 2019, a medical assistance applicant who is not exempt

from the work engagement requirements under this section must be in

compliance with this section not more than 30 days after an

eligibility determination is made.