April 5, 2016

On March 25, 2016, Gov. Herbert signed HB 437 into law. As allowed under PPACA, the new law expands Medicaid coverage in Utah to a limited number of adults (depending on funding) with dependent children that are living beneath the federal poverty level. The law is not a full expansion of Medicaid, but does extend Medicaid eligibility to the very poor in Utah.

While not directly applicable to employers, the Medicaid expansion, even if limited, may be of interest to employers that are subject to PPACA’s employer mandate. Specifically, those employees covered by Medicaid would not trigger an employer mandate penalty, even if they are not offered affordable, minimum value coverage by the employer. That said, employers should not base offers of coverage on Medicaid (or Medicare) eligibility, since that may have implications under other federal laws. The new law is effective immediately.

HB 437 »
Governor’s Press Release »