H.R. 8115House118th Congress (2023-2025)In Committee

To amend title XIX of the Social Security Act to allow for the deferral or disallowance of portions of payments for certain managed care violations under Medicaid.

Introduced April 23, 2024

AI-Generated Summary

Updated January 20, 2026 at 4:09 PM UTC

The bill amends title XIX of the Social Security Act to let the Secretary of Health and Human Services partially withhold or defer Medicaid payments to states when managed‑care providers violate certain requirements, rather than stopping payments entirely. It adds a new option for partial deferral and a fallback to full prohibition if needed, and updates language on state managed‑care options. The changes affect Medicaid payments to states and the managed‑care entities that receive them.

Key Provisions

  • Adds a new subparagraph (I) that allows the Secretary to defer or disallow a portion of a Medicaid payment to a state for a managed‑care violation, when that better reflects the violation’s scope.
  • Permits the Secretary to later apply the full payment prohibition if the partial deferral does not bring the entity into compliance.
  • Amends section 1903(m)(2) by inserting the new subparagraph (I) and adjusting existing references.
  • Updates section 1902(a) by revising paragraph numbering and inserting a new paragraph (88) requiring states that elect the managed‑care option under section 1932 to comply with its requirements.

Legislative Activity

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2 earlier actions
HouseCommittee Latest Action

Referred to the Subcommittee on Health.

April 26, 2024

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HouseIntro Referral

Introduced in House

April 23, 2024

HouseIntro Referral

Referred to the House Committee on Energy and Commerce.

April 23, 2024

HouseCommittee

Referred to the Subcommittee on Health.

April 26, 2024

Bill Text

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Introduced in HouseIssued April 23, 2024

I

118th CONGRESS

2d Session

H. R. 8115

IN THE HOUSE OF REPRESENTATIVES

April 23, 2024

Mr. Sarbanes introduced the following bill; which was referred to the Committee on Energy and Commerce

A BILL

To amend title XIX of the Social Security Act to allow for the deferral or disallowance of portions of payments for certain managed care violations under Medicaid.

1.

Allowing for the deferral or disallowance of portions of payments for certain managed care violations under Medicaid

(a)

In general

Section 1903(m)(2) of the Social Security Act (42 U.S.C. 1396(m)(2)) is amended—

(1)

in subparagraph (A), by striking and (G) and inserting (G), and (I); and

(2)

by adding at the end the following new subparagraph:

(I)
(i)

In lieu of applying the payment prohibition under subparagraph (A) for a violation of any requirement described in such subparagraph, the Secretary may defer or disallow a portion of a payment to a State described in such subparagraph (as determined appropriate by the Secretary) if the Secretary finds that such a deferral or disallowance more appropriately reflects the scope of such violation than application of such prohibition.

(ii)

If the Secretary determines subsequent to a deferral or disallowance of a portion of a payment under clause (i) for a violation by an entity of any requirement described in subparagraph (A) that such deferral or disallowance was insufficient to bring such entity into compliance with such requirement, the Secretary may apply the payment prohibition under subparagraph (A).

.

(b)

Treatment of certain State managed care requirements

Section 1902(a) of the Social Security Act (42 U.S.C. 1396a(a)) is amended—

(1)

in paragraph (86), by striking and at the end;

(2)

in paragraph (87)(D), by striking the period and inserting ; and; and

(3)

by inserting after paragraph (87) the following new paragraph:

(88)

in the case the State elects the option to use managed care under section 1932, provide for compliance with the requirements of such section.

.