CHAPTER 241

FORMERLY

HOUSE BILL NO. 286

AS AMENDED BY

SENATE AMENDMENT NO. 1

AN ACT TO AMEND TITLE 14 AND TITLE 16 OF THE DELAWARE CODE TO ASSIST ENROLLMENT IN THE DELAWARE HEALTHY CHILDREN PROGRAM.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE :

WHEREAS, a substantial number of children eligible for the Delaware Healthy Children Program (CHIP) in Delaware are not enrolled in that program; and

WHEREAS, the result of this under-enrollment is that many Delaware children are needlessly uninsured, and are not receiving important preventative health care and check-ups; and

WHEREAS, the school districts’ federally-funded free and reduced price lunch programs could provide the State with a ready source of information regarding families whose children are potentially eligible for the CHIP program;

NOW, THEREFORE:

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend Title 14 of the Delaware Code by adding a new section 4134, which shall read as follows:

Ҥ 4134 Mandatory Reporting of Delaware Healthy Children Program and Medicaid Information.

(a) Each school district shall be required to report to the Department of Health and Social Services on or before November 1 of each calendar year beginning in 2008 the name, eligibility status, family income level, address, and telephone number of each child eligible for free and reduced price meals through programs subsidized by the National School Lunch Program, the School Breakfast Program, or the Special Milk Program for Children.

(b) The information required by subsection (a) shall be provided to the Department on a form and in a manner prescribed by the Department of Health and Social Services.

(c) On or before August 1, 2008, and during each subsequent application or renewal period for free or reduced price meals, each school district shall notify in writing each parent/guardian whose child receives or seeks to receive free or reduced price meals that:

(i) The child’s free or reduced price meal or free milk eligibility information will be disclosed to DHSS unless the parent or guardian elects not to have the information disclosed;

(ii) The parent/guardian is not required to consent to the disclosure, and the information, if disclosed, will be used solely to identify children eligible for and seek to enroll children in a free or reduced price health insurance program; and

(iii) The parent/guardian’s decision regarding disclosure will not affect the child’s eligibility for free or reduced price meals or free milk.

(a) In connection with the disclosures required by subsection (c), the school district shall give the parent/guardian an opportunity to elect not to have information disclosed to DHSS.

(b) Prior to August 1, 2008, each school district shall enter into a written, signed agreement with DHSS stating that:

(i) DHSS will be receiving from the school district the names, eligibility status, family income level, address, and telephone number of each child eligible for free and reduced price meals through programs subsidized by the National School Lunch Program, the School Breakfast Program, or the Special Milk Program for Children;

(ii) DHSS will use the information received only to seek to enroll children in the state’s CHIP and Medicaid programs;

(iii) The information disclosed by the school district will be protected from unauthorized uses and disclosures (with specific steps to protect the information described); and

(iv) There are federal criminal penalties associated with unauthorized use or disclosure of the information disclosed by the school district (along with a description of the specific criminal sanctions).

(a) The school districts shall cooperate with DHSS and the Office of the Insurance Commissioner in negotiating the agreements required by subsection (e) of this section, and may seek the assistance of the Insurance Commissioner in developing the form required by subsection (c) of this section.

(b) “School district” as used in this section shall mean school district as defined at section 1002(5) of this Title, along with vocational and technical school districts.

Section 2. Amend Title 16 of the Delaware Code by adding new subsections (k) through (p) to Title 16, section 9909, which shall read as follows:

“(k) By September 1 of each calendar year beginning in 2008, DHSS shall develop a form and instructions for school districts to use in communicating to DHSS the information regarding free and reduced price meal eligibility whose submission is required by Title 14, section 4134 of the Delaware Code. Said form and instructions shall be communicated by October 1 of each calendar year to each school district.

(l) By January 1 of each calendar year beginning in 2009, DHSS shall communicate in writing with the family of each child who may be eligible for the CHIP or Medicaid programs based upon information submitted by the school districts pursuant to Title 14, section 4134 of the Delaware Code. Said communication shall inform the family that its children may be eligible for free or reduced price health insurance based upon income information received from the school district, and provide information to the family for applying for the CHIP and Medicaid programs. The form provided to families notified pursuant to this paragraph shall allow DHSS to calculate how many families have enrolled in the CHIP or Medicaid programs as a result of such notification, and the Department of Insurance shall reimburse DHSS for any administrative costs incurred as a result of such additional enrollments. No funds transferred pursuant to this paragraph shall be used to fund insurance benefits for the CHIP or Medicaid programs.

(m) Only persons authorized to carry out initial processing of Medicaid or CHIP applications or make eligibility determinations with respect to Medicaid or CHIP applicants may review information received from the school districts pursuant to Title 14, section 4134 of the Delaware Code.

(n) Prior to August 1, 2008, DHSS shall enter into written agreements with each of the school districts meeting the requirements of Title 14, section 4134(e) of the Delaware Code.

(o) “School district” as used in this section shall have the meaning assigned to it at Title 14, section 4134(g) of the Delaware Code.

(p) DHSS shall cooperate with the school districts and the Insurance Commissioner in developing the written materials required by subsections (k) and (n) of this section. DHSS shall cooperate with the Insurance Commissioner in developing the written materials required by subsection (l) of this section.”

Section 3. Amend Title 16, section 9909(a) of the Delaware Code by adding the words “or ‘CHIP’” immediately after the word “Program” as it appears in parentheses therein.

Approved June 18, 2008