Protect Medicaid Act

This bill prohibits federal Medicaid funding from covering administrative costs for health benefits provided to unauthorized immigrants (noncitizens ineligible due to immigration status). It directly affects states that currently provide Medicaid benefits to such individuals by blocking federal reimbursement for related administrative expenses. Key provisions include amending federal law to create a specific funding restriction and requiring a detailed Inspector General report on state compliance, cost separation methods, and financing approaches for these programs. The report must also analyze whether providing covered drugs to unauthorized immigrants affects drug pricing under Medicaid and 340B programs. The bill focuses on altering funding rules and mandating oversight, not on changing eligibility for benefits.