Title of Rule:	Revisions to the Part D Rules, Section 8.1000	
Rule Number:	MSB 08-01-30-A	
Division / Contact / Phone:	Client Services Division/Tom Leahey/866-2519	
SECRETARY OF STATE
RULES ACTION SUMMARY AND FILING INSTRUCTIONS

SUMMARY OF ACTION ON RULE(S)

1.	Department / Agency Name:	Health Care Policy and Financing / Medical Services Board	
2.	Title of Rule:	MSB 08-01-30-A, Revisions to the Part D Rules, Section 8.1000	
3.	This action is an adoption of:	an amendment	
4.	Rule sections affected in this action (if existing rule, also give Code of Regulations number and page numbers affected): 	
Sections(s) 8.1000, Colorado Department of Health Care Policy and Financing, Staff Manual Volume 8, Medical Assistance (10 CCR 2505-10).	
5.	Does this action involve any temporary or emergency rule(s)?	Yes	
If yes, state effective date:		
Is rule to be made permanent? (If yes, please attach notice of hearing).	Yes	

PUBLICATION INSTRUCTIONS*

Please replace current text from 8.1000.4   ELIGIBILITY FOR THE LOW-INCOME SUBSIDY through the end of 8.1000.4.2.b with the new text provided.

Title of Rule:	Revisions to the Part D Rules, Section 8.1000	
Rule Number:	MSB 08-01-30-A	
Division / Contact / Phone:	Client Services Division/Tom Leahey/866-2519	
STATEMENT OF BASIS AND PURPOSE

1.	Summary of the basis and purpose for the rule or rule change.  (State what the rule says or does and explain why the rule or rule change is necessary).	
This rule revises the Medicare Part D resource limits used in determiniting eligibility for the Medicare Part D low-income subsidy.	
2.	An emergency rule-making is imperatively necessary	
	to comply with state or federal regulation and/or	
	for the preservation of public health, safety and welfare.	
Explain:	
The Centers for Medicare and Medicaid Services increased the resource limits used in determining eligibility for the Medicare Part D low-income subsidy.  This emergency rule is necessary to bring the Department's regulations into compliance with the new federal resource limits.	
3.	Federal authority for the Rule, if any:	
Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (Public  Law 108-173, enacted December 8, 2003); 42 C.F.R. Sections 423.773(b)(2) and (d)(2)  	
4.	State Authority for the Rule:	
25.5-1-301 through 25.5-1-303, C.R.S. (2007);
25.5-5-503(1), C.R.S. (2007)

	
Initial Review		Final Adoption	04/11/2008	
Proposed Effective Date	03/14/2008	Emergency Adoption	03/14/2008	
DOCUMENT #

Title of Rule:	Revisions to the Part D Rules, Section 8.1000	
Rule Number:	MSB 08-01-30-A	
Division / Contact / Phone:	Client Services Division/Tom Leahey/866-2519	
REGULATORY ANALYSIS

1.	Describe the classes of persons who will be affected by the proposed rule, including classes that will bear the costs of the proposed rule and classes that will benefit from the proposed rule.
	Medicare-only clients may benefit from the proposed rule because the resource limits for qualifying for the Part D low-income subsidy have increased for 2008.
Eligibility site technicians will be required to become familiar with the new resource limits to assure the accuracy of eligibility determinations for the Part D low-income subsidy for Medicare-only clients.  
2.	To the extent practicable, describe the probable quantitative and qualitative impact of the proposed rule, economic or otherwise, upon affected classes of persons.
The Centers for Medicare and Medicaid Services increased the resource limits for the Part D low-income subsidy.  Therefore, more Medicare-only clients should qualify for the Part D low-income subsidy.  However, the Department does not have data on Medicare-only clients with which to quantify the impact of the proposed rule.
3.	Discuss the probable costs to the Department and to any other agency of the implementation and enforcement of the proposed rule and any anticipated effect on state revenues.
Most Medicare-only clients apply for the Part D low-income subsidy through the Social Security Administration rather than through the Department.  Therefore, the Department anticipates that if any increase in applications does occur, it will be minimal and absorbed by existing resources.  The required system update will also be completed with existing resources.
4.	Compare the probable costs and benefits of the proposed rule to the probable costs and benefits of inaction.
The benefit of the proposed rule is the accurate determination of eligibility for the Part D low-income subsidy for Medicare-only clients.
5.	Determine whether there are less costly methods or less intrusive methods for achieving the purpose of the proposed rule.
Not applicable.
6.	Describe any alternative methods for achieving the purpose for the proposed rule that were seriously considered by the Department and the reasons why they were rejected in favor of the proposed rule.
Not applicable.

8.1000.4     ELIGIBILITY FOR THE LOW-INCOME SUBSIDY
8.1000.4.A.     Deemed Eligible.  [Eff. 7/1/2007]
1.     An Applicant shall be deemed eligible for the full LIS if the Applicant is:  [Eff. 7/1/2007]
a.     A Full-Benefit Dual Eligible;  [Eff. 7/1/2007]
b.     A recipient of Supplemental Security Income benefits under title XVI of the Social Security Act; or  [Eff. 7/1/2007]
c.     Eligible for Medicaid as a Qualified Medicare Beneficiary (QMB), Specified Low Income Medicare Beneficiary (SLMB), or a Qualifying Individual (QI).  [Eff. 7/1/2007]
8.1000.4.B.     Low-Income Subsidy.  [Eff. 7/1/2007]
1.     Full premium subsidy. An Applicant shall be eligible for the Part D full premium subsidy if the Applicant meets the following requirements:  [Eff. 7/1/2007]
a.     Has income below 135 percent of the Federal Poverty Limit (FPL).  [Eff. 7/1/2007]
b.     Has resources at or below the resource thresholds set forth in 42 C.F.R. Section 423.773(b)(2) (2007).  . 42 C.F.R. Section 423.773(b)(2) (2007).is incorporated herein by reference.  No amendments or later editions are incorporated.  Copies are available for inspection from the following person at the following address:  Custodian of Records, Colorado Department of Health Care Policy and Financing, 1570 Grant Street, Denver, Colorado 80203-1714.  Any material that has been incorporated by reference in this rule may be examined at any state publications repository library.  An Applicant’s resources include the assets or resources of the Applicant’s spouse
2.     Low-Income Subsidy. An Applicant shall be eligible for a Part D partial subsidy if the Applicant meets the following requirements:  [Eff. 7/1/2007]
a.     Has income less than 150 percent of the FPL; and [Eff. 7/1/2007]
b.    Has resources at or below the resource thresholds set forth in 42 C.F.R. Section 423.773(d)(2).  42 C.F.R. Section 423.773(d)(2) (2007).is incorporated herein by reference.  No amendments or later editions are incorporated.  Copies are available for inspection from the following person at the following address:  Custodian of Records, Colorado Department of Health Care Policy and Financing, 1570 Grant Street, Denver, Colorado 80203-1714.  Any material that has been incorporated by reference in this rule may be examined at any state publications repository library.  An Applicant’s resources include the assets or resources of the Applicant’s spouse.  [