1. (a) As used in this section, "covered population" means all Medicaid recipients who meet the criteria set forth in subsection (b).

2. (b) Except as provided in subsection (e), an individual is a member of the covered population if the individual:

   1. (1) is eligible to participate in the federal Medicare program (42 U.S.C. 1395 et seq.) and receives nursing facility services; or

   2. (2) is:

      1. (A) at least sixty (60) years of age;
      2. (B) blind, aged, or disabled; and

      3. (C) receiving services through one (1) of the following:

         1. (i) The aged and disabled Medicaid waiver.
         2. (ii) A risk based managed care program for aged, blind, or disabled individuals who are not eligible to participate in the federal Medicare program.
         3. (iii) The state Medicaid plan.
3. (c) The office of the secretary may implement a risk based managed care program for the covered population.

4. (d) Any managed care organization that participates in the risk based managed care program under subsection (c) that fails to pay a claim submitted by a nursing facility provider for payment under the program later than:

   1. (1) twenty-one (21) days, if the claim was electronically filed; or

   2. (2) thirty (30) days, if the claim was filed on paper;

      from receipt by the managed care organization shall pay a penalty of five hundred dollars ($500) per calendar day per claim.

5. (e) Beginning July 1, 2027, upon an individual receiving nursing facility services for a consecutive period of one hundred (100) days, the individual is no longer a member of the covered population. An individual who was part of the covered population is no longer part of the covered population on the one hundredth day and shall receive Medicaid services under a fee for service program.

As added by P.L.131-2024, SEC.10 and P.L.136-2024, SEC.38 and P.L.17-2024, SEC.3. Amended by P.L.174-2025, SEC.42; P.L.213-2025, SEC.112; P.L.160-2026, SEC.11.