§ 1396w. Asset verification through access to information held by financial institutions
(a)
Implementation
(1)
In general
Subject to the provisions of this section, each State shall implement an asset verification program described in subsection (b), for purposes of determining or redetermining the eligibility of an individual for medical assistance under the State plan under this subchapter.
(2)
Plan submittal
In order to meet the requirement of paragraph (1), each State shall—
(3)
Phase-in
(A)
In general
(i)
Implementation in current asset verification demo States
The Secretary shall require those States specified in subparagraph (C) (to which an asset verification program has been applied before June 30, 2008) to implement an asset verification program under this subsection by the end of fiscal year 2009.
(ii)
Implementation in other States
The Secretary shall require other States to submit and implement an asset verification program under this subsection in such manner as is designed to result in the application of such programs, in the aggregate for all such other States, to enrollment of approximately, but not less than, the following percentage of enrollees, in the aggregate for all such other States, by the end of the fiscal year involved:
(B)
Consideration
In selecting States under subparagraph (A)(ii), the Secretary shall consult with the States involved and take into account the feasibility of implementing asset verification programs in each such State.
(b)
Asset verification program
(1)
In general
For purposes of this section, an asset verification program means a program described in paragraph (2) under which a State—
(A)
requires each applicant for, or recipient of, medical assistance under the State plan under this subchapter on the basis of being aged, blind, or disabled to provide authorization by such applicant or recipient (and any other person whose resources are required by law to be disclosed to determine the eligibility of the applicant or recipient for such assistance) for the State to obtain (subject to the cost reimbursement requirements of section 1115(a) of the Right to Financial Privacy Act [1] [12 U.S.C. 3415] but at no cost to the applicant or recipient) from any financial institution (within the meaning of section 1101(1) of such Act [12 U.S.C. 3401
(1)]) any financial record (within the meaning of section 1101(2) of such Act) held by the institution with respect to the applicant or recipient (and such other person, as applicable), whenever the State determines the record is needed in connection with a determination with respect to such eligibility for (or the amount or extent of) such medical assistance; and
(2)
Program described
A program described in this paragraph is a program for verifying individual assets in a manner consistent with the approach used by the Commissioner of Social Security under section
1383
(e)(1)(B)(ii) of this title.
(c)
Duration of authorization
Notwithstanding section 1104(a)(1) of the Right to Financial Privacy Act [1] [12 U.S.C. 3404
(a)(1)], an authorization provided to a State under subsection (b)(1) shall remain effective until the earliest of—
(d)
Treatment of Right to Financial Privacy Act requirements
(1)
An authorization obtained by the State under subsection (b)(1) shall be considered to meet the requirements of the Right to Financial Privacy Act [1] for purposes of section 1103(a) of such Act [12 U.S.C. 3403
(a)], and need not be furnished to the financial institution, notwithstanding section 1104(a) of such Act [12 U.S.C. 3404
(a)].
(2)
The certification requirements of section 1103(b) of the Right to Financial Privacy Act [1] [12 U.S.C. 3403
(b)] shall not apply to requests by the State pursuant to an authorization provided under subsection (b)(1).
(3)
A request by the State pursuant to an authorization provided under subsection (b)(1) is deemed to meet the requirements of section 1104(a)(3) of the Right to Financial Privacy Act [1] [12 U.S.C. 3404
(a)(3)] and of section 1102 of such Act [12 U.S.C. 3402], relating to a reasonable description of financial records.
(e)
Required disclosure
The State shall inform any person who provides authorization pursuant to subsection (b)(1)(A) of the duration and scope of the authorization.
(f)
Refusal or revocation of authorization
If an applicant for, or recipient of, medical assistance under the State plan under this subchapter (or such other person described in subsection (b)(1), as applicable) refuses to provide, or revokes, any authorization made by the applicant or recipient (or such other person, as applicable) under subsection (b)(1)(A) for the State to obtain from any financial institution any financial record, the State may, on that basis, determine that the applicant or recipient is ineligible for medical assistance.
(g)
Use of contractor
For purposes of implementing an asset verification program under this section, a State may select and enter into a contract with a public or private entity meeting such criteria and qualifications as the State determines appropriate, consistent with requirements in regulations relating to general contracting provisions and with section
1396b
(i)(2) of this title. In carrying out activities under such contract, such an entity shall be subject to the same requirements and limitations on use and disclosure of information as would apply if the State were to carry out such activities directly.
(h)
Technical assistance
The Secretary shall provide States with technical assistance to aid in implementation of an asset verification program under this section.
(i)
Reports
A State implementing an asset verification program under this section shall furnish to the Secretary such reports concerning the program, at such times, in such format, and containing such information as the Secretary determines appropriate.
[1] See References in Text note below.