AB 553

Under current law, the Department of Health Services (DHS) administers the

Medical Assistance (MA) program, under which DHS, among other things, provides

health care benefits to low-income families and individuals. Federal law requires

each state to implement an asset verification program for purposes of determining

eligibility for MA. This bill requires DHS to operate a financial record matching

program (program) for MA applicants and recipients for whom asset verification is

required for eligibility for MA. Under the program, financial institutions in this state

must enter into agreements with DHS to participate in a financial institution

matching option or a state matching option. DHS must pay such a financial

institution up to $125 per calendar quarter for participating.

Under the financial institution matching option, at least once every calendar

quarter DHS sends information to the financial institution, including names,

addresses, and social security numbers, about MA applicants, recipients, and other

individuals whose resources are required by law to be disclosed to determine the

eligibility of an MA applicant or recipient. The financial institution determines

whether any MA applicant, recipient, or other individual has an ownership interest

in an account at the financial institution and, if so, sends DHS information about the

account, such as the type, number, and balance.

Under the state matching option, at least once every calendar quarter the

financial institution sends DHS information about accounts maintained at the

financial institution, including the name and social security number of each person

having an ownership interest in each account. On the basis of that information, DHS

determines whether any MA applicant, recipient, or other individual has an

ownership interest in an account at the financial institution and, if so, may request

further information from the financial institution, including the person's address of

record and the account balance.

The bill prohibits DHS from disclosing or retaining information concerning

account holders who are not MA applicants, recipients, or other individuals;

prohibits employees, agents, officers, and directors of financial institutions from

disclosing or retaining information concerning MA applicants, recipients, or other

individuals; and prohibits both DHS and financial institutions from using any

information received under the program for any purpose not related to the program

or administering MA. The bill provides penalties for any employee, agent, officer, or

director of a financial institution who violates any of the prohibitions. The bill also

provides that a financial institution is not liable for disclosing financial information,

or taking other action, in compliance with the program.

The Department of Children and Families operates a similar financial record

matching program with financial institutions for individuals who are obligated to

pay court-ordered child support.