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HB 8404

AN ACT RELATING TO HUMAN SERVICES -- CHILDREN'S MEDICAID TRANSFORMATION INFRASTRUCTURE FUND ACT

2026 Regular Session Introduced by David Bennett and 9 co-sponsors

Creates a dedicated fund to strengthen infrastructure, data systems, workforce, and care coordination for Rhode Island children’s Medicaid providers during transformation.

05/05/2026 Committee recommended measure be held for further study
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Bill Summary · HB 8404

Summary: HB 8404 (Rhode Island, 2026) - Children's Medicaid Transformation Infrastructure Fund Act

Purpose and Intent

  • Establish a dedicated, restricted fund to support Rhode Island’s Medicaid transformation initiative for children’s community-based providers.
  • Address the anticipated infrastructure needs (administrative, technological, workforce) required for providers to meet new care coordination, data reporting, accountability, and service integration standards starting around January 1, 2027.
  • Build capacity to maintain continuity of care, protect access to services, and improve outcomes for children and families during the Medicaid reform.

Key Provisions

1) Creation and Funding

  • Establishes the “Children’s Medicaid Transformation Infrastructure Fund” within the Department of Children, Youth and Families (DCYF), in coordination with the Executive Office of Health and Human Services (EOHHS).
  • Fund sources:
    • State general fund appropriations
    • Federal funds (e.g., Medicaid administrative matching funds, state fiscal recovery funds, other federal sources)
    • Other public or private funds available for the act’s purposes
  • Initial appropriation: $5,000,000 for Fiscal Year 2027.

2) Administration and Oversight

  • DCYF administers the fund in coordination with EOHHS.
  • DCYF duties include:
    • Establishing guidelines, eligibility criteria, and reporting requirements
    • Providing technical assistance to applicants and grantees
    • Entering contracts or grant agreements with eligible entities
    • Monitoring compliance and evaluating outcomes
    • Potentially phasing funding across planning, implementation, and readiness stages

3) Eligible Recipients

  • Eligible entities: nonprofit and community-based organizations that either:
    • Provide services to children and families and are enrolled in or eligible for Rhode Island Medicaid, or
    • Contract with or are designated by DCYF or EOHHS
  • Priority considerations:
    • Organizations serving high-need or underserved populations
    • Participation in Medicaid transformation initiatives
    • Provision of critical safety net services

4) Authorized Use of Funds (Infrastructure Focus)

  • Funds must be used exclusively for infrastructure and capacity-building activities needed to comply with Medicaid transformation, including:
    • Workforce recruitment, retention, and training
    • Development or enhancement of data systems (e.g., electronic health records, reporting tools)
    • Care coordination infrastructure and partnership development
    • Administrative and financial system upgrades for new payment models
    • Quality improvement and compliance systems
    • Facility improvements to expand service access
    • Other DCYF-approved costs directly supporting readiness for transformation

5) Funding Determination and Award Process

  • DCYF develops a methodology to award funds based on demonstrated need and documented readiness costs.
  • Applicants must submit:
    • Detailed budget of projected infrastructure costs
    • Readiness or gap assessment of current capacity
    • Plan for achieving compliance with Medicaid transformation requirements
  • Awards may be scaled by factors such as:
    • Size and scope of the provider
    • Population served
    • Extent of infrastructure gaps
    • Demonstrated cost to achieve compliance

6) Reporting and Accountability

  • Periodic reporting by grantees on:
    • Use of funds
    • Progress toward infrastructure development
    • Readiness to meet Medicaid transformation requirements
  • Annual reporting to the Governor and General Assembly (by January 31 each year) detailing:
    • Funds awarded and expended
    • Types of infrastructure investments
    • Measurable outcomes achieved
    • Recommendations for future funding or program modifications

7) Rules and Effective Date

  • DCYF authorized to promulgate rules and regulations necessary to implement the act.
  • Effective date: upon passage.

Who Is Affected

  • Primary: Children’s community-based providers, nonprofit and community-based organizations serving Rhode Island children and families that are enrolled in or eligible for Medicaid or have contracts with DCYF/EOHHS.
  • Indirectly: Children and families who rely on these providers, and the agencies DCYF/EOHHS oversee.

Timeline and Procedural Considerations

  • Medicaid transformation initiative for children’s providers slated to begin implementation around January 1, 2027.
  • The act provides for phased funding (planning, implementation, readiness) and requires ongoing reporting, with the inaugural $5 million appropriation for FY 2027.
  • Intended to align infrastructure readiness with transformation milestones to preserve access and improve outcomes.

Notable Details

  • No new revenue sources beyond appropriations and eligible federal funds are listed; cost implications depend on future funding and use.
  • Emphasizes targeting underserved populations and sustaining safety-net services during reform.

This bill would create a structured funding mechanism to strengthen the underlying capacity of Rhode Island’s children’s Medicaid providers as the state moves forward with Medicaid transformation, focusing on infrastructure, data, care coordination, and workforce improvements.

Compiled from official sources — confirm details with the bill’s official record.

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