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SB 1411

RELATING TO MEDICAID THIRD PARTY LIABILITY.

2025 Regular Session Introduced by Ron Kouchi

SB 1411 strengthens Medicaid's ability to recover costs from third parties, ensuring efficient use of funds and reducing taxpayer burden while benefiting recipients.

Act 059, 05/15/2025 (Gov. Msg. No. 1159).
#medicaid #medicalassistanceprogramclaims #third-partyliability
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Bill Summary · SB 1411

Summary of SB 1411: Relating to Medicaid Third Party Liability

Bill Information:
- Bill Number: SB 1411
- Title: Relating to Medicaid Third Party Liability
- Status: Act 059, effective May 15, 2025 (Gov. Msg. No. 1159)
- Introduced: January 21, 2025
- Classification: Bill
- Subject: Medicaid, Medical Assistance Program Claims, Third-Party Liability

Purpose and Intent

The primary purpose of SB 1411 is to enhance the Medicaid program's ability to recover costs from third parties who are liable for medical expenses incurred by Medicaid recipients. This legislation aims to ensure that Medicaid funds are used efficiently and that the financial burden on taxpayers is minimized by holding responsible parties accountable for their obligations.

Key Provisions

  • Third-Party Liability Recovery: The bill establishes clearer guidelines for identifying and pursuing third-party liability claims. This includes mechanisms for the state to recover costs from insurance companies or other entities responsible for covering medical expenses.
  • Claims Process Improvement: SB 1411 outlines a streamlined process for Medicaid to assert claims against third parties, which is expected to expedite recovery efforts and reduce administrative burdens.
  • Reporting Requirements: The bill mandates that certain entities report to the Medicaid program when they are aware of a third-party liability that may affect Medicaid claims.
  • Enforcement Measures: The legislation includes provisions for penalties or sanctions against entities that fail to comply with reporting requirements or that obstruct the recovery process.

Affected Parties

  • Medicaid Recipients: Individuals who rely on Medicaid for medical assistance will benefit from improved recovery efforts, potentially leading to more sustainable funding for the program.
  • Third-Party Insurers: Insurance companies and other liable parties will be directly impacted as they may face increased claims from the Medicaid program.
  • State Government: The state will have enhanced tools to recover funds, which could lead to significant savings in Medicaid expenditures.

Procedural Timeline

  • Introduced: January 21, 2025
  • Passed Final Reading: April 23, 2025, with unanimous support in the Senate (25 Ayes).
  • Enrolled to Governor: April 23, 2025
  • Signed into Law: May 15, 2025

Conclusion

SB 1411 represents a significant step towards improving the financial integrity of the Medicaid program by enhancing the state's ability to recover costs from third parties. By establishing clearer processes and requirements, the bill aims to ensure that Medicaid resources are used effectively, ultimately benefiting both the program and its recipients.

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

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