Protect Medicaid Act

HR 1195, the Protect Medicaid Act, prohibits federal Medicaid funds from covering administrative costs related to health benefits provided to unauthorized immigrants who lack lawful immigration status and are ineligible for Medicaid. This directly affects states that currently provide such benefits, requiring them to separate these administrative costs from general Medicaid program expenses. The bill adds a new provision to the Social Security Act clarifying that federal funds cannot be used for these specific administrative costs, while allowing funds for systems designed to enforce this rule. It also mandates an Inspector General report detailing how states separate costs, ensure compliance, finance these programs (e.g., through provider taxes), and the impact on drug pricing for this population.