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H.R. 670 (114th): Special Needs Trust Fairness and Medicaid Improvement Act

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The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress, and was published on Sep 20, 2016.

(This measure has not been amended since it was reported to the House on September 9, 2016. The summary of that version is repeated here.)

Special Needs Trust Fairness and Medicaid Improvement Act

(Sec. 2) This bill amends title XIX (Medicaid) of the Social Security Act with respect to the treatment of revocable trusts for the benefit of an individual for purposes of meeting income requirements for Medicaid coverage.

The bill extends the supplemental needs trust exemption from treatment of a trust as resources available to the individual to supplemental needs trusts for Medicaid beneficiaries established by those beneficiaries.

(Sec. 3) Medicaid coverage of tobacco cessation services shall continue to be provided for mothers of newborns through the first year after the child's birth.

The Inspector General of the Department of Health and Human Services must report to the Congress on the use of the tobacco cessation service benefit under the Medicaid program.

(Sec. 4) The bill eliminates federal financial participation regarding expenditures under Medicaid for drugs used for cosmetic purposes or hair growth, except where such drugs are medically necessary.

(Sec. 5) The bill makes additional funding available to the Medicaid Improvement Fund for FY2021 and FY2022.