Louisiana Department of Health to review Medicaid eligibility data monthly

Senate Bill 130, introduced in Louisiana on April 4, 2025, aims to enhance the oversight of Medicaid eligibility by requiring the Louisiana Department of Health to regularly review various data sources for changes in individuals' circumstances. The bill seeks to address issues of Medicaid fraud and ensure that only eligible individuals receive benefits.

Key provisions of the bill mandate that the Department of Health receive and analyze information from multiple state and federal agencies. This includes data from the Department of Public Safety and Corrections regarding incarceration status, the Louisiana Workforce Commission concerning employment and income changes, and the Louisiana Lottery and Gaming Control Board to identify individuals with significant gambling or lottery winnings. The bill stipulates that individuals who fail to disclose such winnings will be presumed to have committed an intentional program violation.

The legislation has sparked notable discussions among lawmakers, particularly regarding its implications for privacy and the potential for increased administrative burdens on state agencies. Supporters argue that the bill is essential for preventing fraud and ensuring the integrity of the Medicaid program, while opponents raise concerns about the fairness of penalizing individuals who may not be aware of their reporting obligations.

Economically, the bill could lead to significant savings for the state by reducing improper Medicaid payments. However, critics warn that the increased scrutiny may disproportionately affect vulnerable populations who rely on these benefits.

As the bill moves through the legislative process, its potential impact on Medicaid recipients and the administrative landscape of health services in Louisiana remains a focal point of debate. If passed, SB 130 could reshape how eligibility is monitored and enforced, setting a precedent for similar measures in other states.