17-1722

us-hi-regs-official-733fdcb78fb23dd6b71c3b0c2b2f5aa61b6abc59a718b14b6968aaadf95c8f1617-1722Regulation

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HAWAII ADMINISTRATIVE RULES
TITLE 17
DEPARTMENT OF HUMAN SERVICES
SUBTITLE 12
MED-QUEST DIVISION
CHAPTER 1722
SPECIAL MEDICAL ASSISTANCE COVERAGES AND PROGRAMS
Subchapter 1 	General Provisions
§17-1722-1 	Purpose
§17-1722-2 	(Reserved)
Subchapter 2 	Qualified Severely Impaired
Individuals
§17-1722-3 	Purpose
§17-1722-4 	Eligibility requirements
§17-1722-5 	Provision of coverage
§§17-1722-6 to 17-1722-8 	(Reserved)
Subchapter 3 	Qualified Medicare Beneficiaries
§17-1722-9 	Purpose
§17-1722-10 	Eligibility requirements
§17-1722-11 	Treatment of income and assets
§17-1722-12 	Limitations of coverage
§17-1722-13 	Effective date of coverage
§§17-1722-14 to 17-1722-16 	(Reserved)
Subchapter 4 	Specified Low Income Medicare
Beneficiaries
§17-1722-17 	Purpose
§17-1722-18 	Eligibility requirements
§17-1722-19 	Treatment of income and assets
§17-1722-20 	Provision of coverage
§17-1722-21 	(Repealed)
§§17-1722-22 to 17-1722-24 	(Reserved)
Subchapter 5 	Qualified Disabled and Working
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Individuals
§17-1722-25 	Purpose
§17-1722-26 	Eligibility requirements
§17-1722-27 	Treatment of income and assets
§17-1722-28 	Limitations of coverage
§17-1722-29 	Effective date of coverage
§§17-1722-30 to 17-1722-32 	(Reserved)
Subchapter 6 	Medical Payments for Pensioners
§17-1722-33 	Purpose
§17-1722-34 	Definitions
§17-1722-35 	Eligibility requirements
§17-1722-36 	Treatment of income and assets
§17-1722-37 	Limitations of coverage
§17-1722-38 	Application for payment of medical
services
§17-1722-39 	Eligibility review
§§17-1722-40 to 17-1722-42 	(Reserved)
Subchapter 7 	Child Welfare Medical
§§17-1722-43 to 17-1722-49 	(Repealed)
§§17-1722-50 to 17-1722-55 	(Reserved)
Subchapter 8 	Special Group for Individuals
Formerly Covered By SHIP
§17-1722-56 	Purpose
§17-1722-57 	Definitions
§17-1722-58 	Eligibility requirements
§17-1722-59 	Personal reserve standards
§17-1722-60 	Treatment of income
§17-1722-61 	Eligibility review
§17-1722-62 	Verification and reporting requirements
§17-1722-63 	Disqualification
§17-1722-64 	Cost share
§17-1722-65 	Covered services
§17-1722-66 	Excluded services
§§17-1722-67 to 17-1722-68 	(Reserved)
Subchapter 9 	Qualifying Individuals
§17-1722-69 	Purpose
§17-1722-70 	Eligibility requirements
§17-1722-71 	Treatment of income and assets
§17-1722-72 	Limitations of coverage
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§17-1722-73 	Limit on the number of eligible
individuals
§17-1722-74 	Effective date of coverage
§§17-1722-75 to 17-1722-77 	(Reserved)
Subchapter 10 	Medical assistance for disabled
children who lose SSI benefits
§17-1722-78 	Purpose
§17-1722-79 	Eligibility requirements
§17-1722-80 	Treatment of income and assets
§17-1722-81 	Provision of coverage
§17-1722-82 	Effective date of coverage
§§17-1722-83 to 17-1722-85 	(Reserved)
Subchapter 11 	Low Income Subsidy Program
§17-1722-86 	Purpose
§17-1722-87 	Definitions
§17-1722-88 	Application and eligibility
determination for the LIS
§17-1722-89 	Eligibility and requirements
§17-1722-90 	Benefits of the LIS program
§17-1722-91 	Eligibility redeterminations
§17-1722-92 	Reporting requirements
§17-1722-93 	Termination of LIS benefits
§17-1722-94 	Appeals and hearings
§17-1722-95 to 17-1722-115 	(Reserved)
Subchapter 12 	State Pharmacy Assistance Program
§17-1722-116 	General provisions
§17-1722-117 	Definitions
§17-1722-118 	Application requirements
§17-1722-119 	Eligibility requirements
§17-1722-120 	Benefits
§17-1722-121 	Eligibility reviews
§17-1722-122 	State pharmacy assistance program card
§17-1722-123 	Quality control reviews
§17-1722-124 	Reporting requirements
§17-1722-125 	Termination
§17-1722-126 	Administration of the program
§17-1722-127 	Rebate agreement
§17-1722-128 	Pharmacy or PDP reimbursement
§17-1722-129 	State pharmacy assistance program
special fund
SUBCHAPTER 13 	Medical Assistance For
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Disabled Adult Children Who
Lose SSI Benefits
§17-1722-145 	Purpose
§17-1722-146 	Definitions
§17-1722-147 	Eligibility requirements
§17-1722-148 	Financial eligibility determination
§17-1722-149 	Provision of coverage
Historical Note: 	This chapter is based substantially
-upon §17-742-2.02 [Eff 10/23/87; am 10/1/89; R
3/19/93]; and §17-742-2.1 [Eff 2/22/88; am 5/6/91; R
3/19/93]; and Chapter 17-752. [Eff 7/19/82; am
12/17/82; am 8/20/83; am 3/30/84; am 8/23/84; am
8/9/85; am 5/5/86; am 3/2/87; am 10/23/87; am 6/5/89;
am 1/1/90; am 7/26/90; am 8/30/91; R 3/19/93].
SUBCHAPTER 1
GENERAL PROVISIONS
§17-1722-1 	Purpose. 	The purpose of this chapter
is to describe certain special coverages of the
medical assistance program and to establish the
requirements for eligibility and participation in the
coverages. 	[Eff 08/01/94 	] (Auth: 	HRS §346-
14; 42 C.F.R. §431.10) 	(Imp: HRS §88-4, 42 U.S.C.
§§1396a, 1396d; 42 C.F.R. §435.139)
§17-1722-2 	(Reserved).
SUBCHAPTER 2
QUALIFIED SEVERELY IMPAIRED INDIVIDUALS
§17-1722-3 	Purpose. 	The purpose of this
subchapter is to describe the coverage of qualified
severely impaired individuals and the eligibility
criteria for that coverage group.
[Eff 08/01/94 	] (Auth: 	HRS §346-14; 42 C.F.R.
§431.10) 	(Imp: 	42 U.S.C. §§1396a(a)(10)(A)(i)(II),
1396d(q))
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§17-1722-4 	Eligibility requirements. 	(a) 	A
qualified severely impaired individual is a person:
(1) 	Who, for the month preceding the month to
which this section applies;
(A) 	Received SSI, SSP, or both on the basis
of blindness or disability; and
(B) 	Was eligible for medical assistance;
and
(2) 	Of whom, the Social Security Administration
determines that:
(A) 	The individual continues to be blind or
disabled, and except for the
individual's earnings, continues to
meet SSI eligibility requirements;
(B) 	Without medical assistance the
individual's ability to continue or
obtain employment would be seriously
inhibited; and
(C) 	The individual's earnings are not
sufficient to provide a reasonable
equivalent to the benefits from
SSI/SSP, medical assistance, and
publicly funded attendant care services
for which the individual would be
eligible, were it not for the
individual's earnings.
(b) 	For the purposes of this section, an
individual, who is eligible for special SSI/SSP
payments or for work incentive allowances under
provisions of 42 U.S.C. §1382h shall be considered to
have met the requirements of subsection (a). 	Thus, an
individual with 1619 status, meeting the provisions of
subsection (a), shall be considered a qualified
severely impaired individual.
(c) 	An individual who meets the definition of a
qualified severely impaired individual shall be
eligible for medical assistance, provided the
individual remains in 1619 status, as determined by
the Social Security Administration.
(d) 	When an individual has more than one period
of eligibility under 1619 status in the SSI Program,
the first month of the most recent period shall be
used to determine eligibility for medical assistance.
[Eff 08/01/94 	] 	(Auth: 	HRS §346-14; 42 C.F.R.
§431.10) 	(Imp: 42 U.S.C. §§1396a(a)(10)(A)(i)(II),
1396d(q))
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§17-1722-5 	Provision of coverage. 	(a) Coverage
for a qualified severely impaired individual shall be
through enrollment in a health plan as described in
chapter 17-1720.1.
(b) 	Coverage under this section excludes payment
for Medicare Part A premiums. 	[Eff 08/01/94; am
01/31/09; am 09/30/13] 	(Auth: 	HRS §346-14; 42 C.F.R.
§431.10; 42 U.S.C. §§1396a(a)(10)(A)(i)(II), 1396d(q))
(Imp: 42 U.S.C. §§1396a(a)(10)(A)(i)(II), 1396d(q))
§§17-1722-6 to 17-1722-8 	(Reserved).
SUBCHAPTER 3
QUALIFIED MEDICARE BENEFICIARIES
§17-1722-9 	Purpose. 	The purpose of this
subchapter is to establish the requirements for
eligibility of qualified medicare beneficiaries and
limitations of coverage for that assistance group.
[Eff 08/01/94 	] 	(Auth: 	HRS §346-14; 42 C.F.R.
§435.10) 	(Imp: 	42 U.S.C. §1396d(p))
§17-1722-10 	Eligibility requirements. 	A
qualified medicare beneficiary shall meet all of the
conditions as follows:
(1) 	Entitled to hospital insurance benefits
under the medicare program;
(2) 	In receipt of income which does not exceed
the federal poverty level for the household
of applicable size;
(3) 	In possession of assets which do not exceed
three times the resource limit of the
supplemental security income program
adjusted by the annual percentage increase
in the consumer price index; and
(4) 	Required to meet basic eligibility
conditions, detailed in chapter 17-1714.1,
including:
(A) 	A resident of the State;
(B) 	A citizen of the United States or a
legal resident non-citizen;
(C) 	Not a resident of a public institution;
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(D) 	Assign to the department any benefits
from a third party for coverage of
medical expenses, to the extent of
medical costs paid by the department;
and
(E) 	Furnish a social security number and
verification of that number. 	[Eff
08/01/94; am 09/30/13] 	(Auth: 	HRS
§346-14; 42 C.F.R. §435.10; 42 U.S.C.
§§1396a(10)(E)(i), 1396d(p)) 	(Imp. 42
U.S.C. §§1396a(10)(E)(i), 1396d(p))
§17-1722-11 	Treatment of income and assets. 	The
income and assets of a qualified medicare beneficiary
shall be treated as described in chapters 17-1724.1
and 17-1725.1. 	[[Eff: 	08/01/94; am 09/30/13] 	(Auth:
HRS §346-14; 42 C.F.R. §435.10; §§1396a(a)(10)(E)(i),
1396d(p)) (Imp: 	42 U.S.C. §§1396a(a)(10)(E)(i),
1396d(p))
§17-1722-12 	Limitations of coverage.
Individuals eligible under this subchapter shall be
limited to coverage of the premiums, deductibles, and
co-insurance amounts under the Medicare Part A and B.
[Eff 08/01/94; am 12/26/05 	] 	(Auth: 	HRS
§346-14; 42 C.F.R. §435.10) 	(Imp: 	42 U.S.C.
§1396d(p); Pub. L. 108-173)
§17-1722-13 	Effective date of coverage. 	(a)
Coverage as a qualified medicare beneficiary begins on
the first day of the month after the month in which
determination of eligibility is made.
(b) 	The retroactive provisions under
chapter 17-1711.1 do not apply. 	[Eff 	08/01/94; am
01/31/09; am 09/30/13] 	(Auth: 	HRS §346-14; 42 C.F.R
§435.10; §§1396a(a)(10)(E)(i), 1396d(p)) 	(Imp: 	42
U.S.C. §§1396a(a)(10)(E)(i), 1396d(p))
§§17-1722-14 to 17-1722-16 	(Reserved).
SUBCHAPTER 4
SPECIFIED LOW INCOME MEDICARE BENEFICIARIES
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§17-1722-17 	Purpose. 	The purpose of this
subchapter is to establish the requirements for
eligibility of specified low income medicare
beneficiaries and the limitations of coverage for that
assistance group. 	[Eff 08/01/94 	] 	(Auth: 	HRS
§346-14; 42 C.F.R. §435.10) 	(Imp: 42 U.S.C.
§1396a(a)(10)(E))
§17-1722-18 	Eligibility requirements. 	A
specified low income medicare beneficiary shall meet
all of the conditions as follows:
(1) 	Entitled to hospital insurance benefits
under the medicare program;
(2) 	In receipt of income which does not exceed
one hundred twenty per cent of the federal
poverty level;
(3) 	In possession of assets which do not exceed
three times the resource limit of the
supplemental security income program
adjusted by the annual percentage increase
in the consumer price index; and
(4) 	Required to meet basic eligibility
conditions detailed in chapter 17-1714.1
including:
(A) 	A resident of the State;
(B) 	A citizen of the United States or a
legal resident non-citizen;
(C) 	Not a resident of a public institution;
(D) 	Furnish a social security number and
verification of that number. 	[Eff
08/01/94; am 09/30/13] 	(Auth: 	HRS
§346-14; 42 C.F.R. §435.10; 42 U.S.C.
§§1396a(a)(10)(E)(iii), 1396d(p))
(Imp: 	42 U.S.C.
§§1396a(a)(10)(E)(iii), 1396d(p),
1395w-114(a)(3)(D))
§17-1722-19 	Treatment of income and assets. 	The
income and assets of a specified low income medicare
beneficiary shall be treated as described in chapters
17-1724.1 and 17-1725.1. 	[Eff 	08/01/94;
am 09/30/13](Auth: 	HRS §346-14; 42 C.F.R. §435.10; 42
U.S.C. §§1396a(a)(10)(E)(ii), 1396d(p)) (Imp: 	42
U.S.C. §§1396a(a)(10)(E)(ii), 1396d(p))
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§17-1722-20 	Provision of coverage. 	(a) Coverage
as a specified low income Medicare beneficiary shall
be limited to the payment of the Medicare supplemental
medical insurance premium.
(b) 	Coverage shall be effective in the month in
which eligibility begins, no earlier than the first
day of the three months prior to the month the
application was received by the department.
[Eff 08/01/94; am 01/31/09; am 06/11/09 	]
(Auth: 	HRS §346-14; 42 C.F.R. §435.10) 	(Imp: 	42
U.S.C. §1396a(a)(10)(E))
§17-1722-21 	REPEALED [Eff 08/01/94;
R 01/31/09 	] 	(Auth: 	HRS §346-14; 42 C.F.R.
§435.10) 	(Imp: 	42 U.S.C. §1396a(a)(10)(E))
§§17-1722-22 to 17-1722-24 	(Reserved)
SUBCHAPTER 5
QUALIFIED DISABLED AND WORKING INDIVIDUALS
§17-1722-25 	Purpose. 	The purpose of this
subchapter is to establish the requirements for
eligibility of qualified disabled and working
individuals and limitations of coverage for that
assistance group. 	[Eff 08/01/94 	] 	(Auth: 	HRS
§346-14; 42 C.F.R. §435.10) 	(Imp: 	42 U.S.C.
§1396a(a)(10)(E))
§17-1722-26 	Eligibility requirements. 	A
qualified disabled and working individual shall meet
all of the following requirements:
(1) 	Entitled to enroll for hospital insurance
benefits under Part A of Medicare based on
42 U.S.C. §1395i-2(a) which requires that
the individual:
(A) 	Is not yet sixty-five years of age;
(B) 	Has been entitled to Social Security
disability insurance benefits;
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(C) 	Continues to have a disabling physical
or mental condition;
(D) 	Is found to be ineligible for continued
Social Security disability insurance
benefits due to earnings exceeding the
substantial gainful activity (SGA)
limits; and
(E) 	Is not otherwise entitled to Medicare.
(2) 	Is in receipt of income which does not
exceed two hundred per cent of the federal
poverty level;
(3) 	In possession of assets which do not exceed
two times the resource limit of the
supplemental security income program;
(4) 	Required to meet basic eligibility
conditions, as follows:
(A) 	A resident of the State;
(B) 	A citizen of the United States or a
legal resident non-citizen;
(C) 	Not a resident of a public institution;
(D) 	Assign to the department any benefits
from a third party for coverage of
medical costs paid by the department;
and
(E) 	Furnish a social security number and
verification of that number; and
(5) 	Not otherwise eligible for medical
assistance under Title XIX. 	[Eff 	08/01/94;
am 09/30/13] 	(Auth: 	HRS §346-14; 42 C.F.R.
§435.10; 42 U.S.C. §1396a(a)(10)(E)(ii),
1396a(p)(3), 1396d(s)) (Imp: 	42 U.S.C.
§§1396a(a)(10)(E)(ii), 1396a(p)(3),
1396d(s))
§17-1722-27 	Treatment of income and assets. 	The
income and assets of a qualified disabled and working
individual shall be treated as described in chapters 17-
1724.1 and 17-1725.1. 	[Eff 08/01/94; am 09/30/13]
(Auth: 	HRS §346-14; 42 C.F.R. §435.10; 42 U.S.C.
§§1396a(a)(10)(E)(ii), 1396a(p)(3), 1396d(s)) (Imp: 	42
U.S.C. §§1396a(a)(10)(E)(ii), 1396a(p)(3), 1396d(s))
§17-1722-28 	Limitations of coverage.
Individuals eligible under this subchapter shall only
be entitled to coverage of the premiums for hospital
insurance coverage under the medicare program.
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[Eff 08/01/94 	] 	(Auth: 	HRS §346-14; 42 C.F.R.
§435.10) 	(Imp: 	42 U.S.C. §1396a(a)(10)(E))
§17-1722-29 	Effective date of coverage.
Coverage as a qualified disabled and working
individual will coincide with the effective date of
enrollment in Part A, as allowed under section 1818A
of the Social Security Act (42 U.S.C. §1395i-2(a) and
determined by the Social Security Administration but
not earlier than the first day of the three months
prior to the month the application is received by the
department. 	[Eff 08/01/94; am 01/31/09; am
06/11/09 	] 	(Auth: 	HRS §346-14; 42 C.F.R.
§435.10) 	(Imp: 	42 U.S.C. §1396a(a)(10)(E))
§§17-1722-30 to 17-1722-32 	(Reserved).
SUBCHAPTER 6
MEDICAL PAYMENTS FOR PENSIONERS
§l7-1722-33 	Purpose. 	The purpose of this
subchapter is to establish the program of medical
coverage of persons receiving pensions or retirement
payments from the state or counties of Hawaii.
[Eff 08/01/94 	] 	(Auth: 	HRS §346-l4) 	(Imp:
HRS §88-4)
§l7-1722-34 	REPEALED. 	[R 09/30/13]
§l7-1722-35 	Eligibility requirements. 	(a) 	A
pensioner, a pensioner's spouse, or a pensioner's
surviving spouse shall be eligible for coverage of
medical services by meeting any of the following
conditions.
(l) 	The pensioner and the pensioner's spouse, if
any, are actually and solely dependent on
the state or county pension for maintenance
and support;
(2) 	The pensioner and the pensioner's spouse, if
any, have total income from all sources,
including the pension, social security
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benefits, interest and dividends, and any
income of the spouse, of less than $2,400;
(3) 	The spouse of a pensioner is currently
eligible for coverage of medical care under
this subchapter; or
(4) 	The spouse of a deceased pensioner who was
or would have been eligible under this
subchapter remains unmarried.
(b) 	The following persons shall not be eligible
under this program:
(l) 	Dependent children of eligible pensioners;
(2) 	Divorced or separated spouses of pensioners;
and
(3) 	Parents or other non-spousal relatives of
pensioners
(c) 	Resources including, but not limited to
savings, real property, medical benefit plans, bonds,
stocks, insurance, and automobiles, shall not be taken
into consideration in determining the pensioner's
eligibility for coverage of medical care, under the
provisions of this subchapter. 	[Eff 08/01/94 	]
(Auth: 	HRS §346-l4) 	(Imp: 	HRS §88-4)
§17-1722-36 	Treatment of income and assets. 	An
eligible pensioner and the pensioner's spouse, if any,
shall not be required to use any portion of the
pensioner's or the pensioner's spouse's income or
resources to meet medical costs covered under the
provisions of this subchapter. 	[Eff 08/01/94 	]
(Auth: 	HRS §346-14) 	(Imp: 	HRS §88-4)
§17-1722-37 	Limitations of coverage. 	(a)
Eligible pensioners and pensioners' spouses shall be
entitled to all health care coverage provided to
medical assistance recipients, except for:
(1) 	Payment of health insurance premiums
payments, including that of medicare; and
(2) 	Coverage of the portion of medical care
expenses paid by a third party.
(b) 	Medical payments assistance for services
covered by the department's medical assistance program
shall be made available to eligible pensioners and
pensioners' eligible spouses conditioned upon prior
authorization for certain elective medical services,
third party resources, and established payment
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practices in the medical assistance program.
[Eff 08/01/94 	] 	(Auth: 	HRS §346-l4) 	(Imp:
HRS §88-4)
§l7-1722-38 	Application for payment of medical
services. 	(a) 	A pensioner or a surviving spouse
shall sign an application form as a condition for
approval of the application.
(b) 	A relative, friend, or a designee may be
asked to complete and sign the application form on
behalf of a pensioner or spouse when the pensioner or
spouse is determined by the department to be unable to
do so. 	[Eff 08/01/94 	] 	(Auth: 	HRS §346-l4)
(Imp: 	HRS §346-l4)
§l7-1722-39 	Eligibility review. 	Eligibility
reviews shall be conducted every six months or at
intervals determined necessary by the eligibility
worker. [Eff 08/01/94 	] 	(Auth: 	HRS §346-l4)
(Imp: 	HRS §346-l4)
§§17-1722-40 to 17-1722-42 	(Reserved).
SUBCHAPTER 7
CHILD WELFARE MEDICAL
Repealed
§§17-1722-43 to 17-1722-49 	REPEALED.
[Eff 08/01/94; R 01/29/96 	]
§§17-1722-50 to 17-1722-55 	(Reserved).
SUBCHAPTER 8
SPECIAL GROUP FOR INDIVIDUALS FORMERLY COVERED BY SHIP
§17-1722-56 	Purpose. 	The purpose of this
subchapter is to establish the eligibility
requirements for a special group comprised of
individuals who were enrolled the state health
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insurance program who were not eligible for inclusion
in the Hawaii Med-QUEST program, and the coverage and
limitations of coverage for that group.
[Eff 11/13/95 	] (Auth: 	HRS §§346-14, 431N)
(Imp: HRS §§346-14, 431N)
§17-1722-57 	REPEALED. 	[R 09/30/13]
§17-1722-58 	Eligibility requirements. 	(a)
Members of this group must have been eligible for SHIP
as of July 31, 1994 and would have maintained
continued eligibility except for the discontinuance of
SHIP, and were not eligible for inclusion in the
formerly known QUEST program as of August 1, 1994.
(b) 	A member of this group shall:
(1) 	Be a resident of the State who is a citizen
of the United States or a legal resident
non-citizen;
(2) 	Not be entitled to benefits under the
Medicaid program with the exception of those
whose eligibility is dependent on a
spenddown of income;
(3) 	Not be entitled to insurance benefits under
the Medicare program;
(4) 	Not be entitled to coverage under TRICARE or
another federally sponsored program except
for benefits under the Native Hawaiian
Health Care Act of 1988;
(5) 	Not be entitled for insurance benefits under
the Hawaii Prepaid Health Care Act; and
(6) 	Not have income exceeding three hundred
percent of the FPL.
(c) 	An exception to subparagraph (b)(6) are
state emergency appointments and their families who
are ineligible for health insurance coverage through
the employer.
(d) 	Any break in eligibility shall cause
permanent exclusion from this group. 	[Eff 	11/13/95;
am 09/30/13] 	(Auth: 	HRS §§346-14, 431N; 42 U.S.C.
§§11701 - 11714) (Imp: HRS §§346-14, 431N; 42 U.S.C.
§§11701 - 11714)
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§17-1722-59 	Personal reserve standards. 	There
are no personal reserve standards for individuals in
the special group. 	[Eff 11/13/95 	] (Auth: 	HRS
§§346-14, 431N) (Imp: HRS §§346-14, 431N)
§17-1722-60 	Treatment of income. 	(a) 	The gross
income of members in the family unit will be
considered in determining eligibility, whether or not
all family members are eligible for special group
benefits.
(b) 	Income that can be used for the maintenance
and support of the family members includes, but is not
limited to:
(1) 	Earned income from wages, salaries, tips, or
commissions;
(2) 	Net income from self-employment or rentals;
(3) 	Interest income;
(4) 	Royalties and dividends;
(5) 	Pensions;
(6) 	Social Security benefits;
(7) 	SSI;
(8) 	UIB;
(9) 	TDI and workers' compensation; and
(10) 	Monetary contributions and gifts.
(c) 	Gross family income shall be compared to the
FPL for the family size. 	[Eff 11/13/95 	] (Auth:
HRS §§346-14, 431N) (Imp: HRS §§346-14, 431N)
§17-1722-61 	Eligibility review. 	(a)
Eligibility reviews shall be conducted annually or at
intervals determined necessary by the department
(b) 	Individuals who fail to complete or fail to
cooperate in the completion of the eligibility review
shall be ineligible for benefits under this group.
[Eff 11/13/95 	] (Auth: 	HRS §§346-14, 431N)
(Imp: HRS §§346-14, 431N)
§17-1722-62 	Verification and reporting
requirements. 	(a) 	The department may require
individuals to furnish verification of eligibility
factors.
(b) 	Individuals shall furnish the requested
information within ten days of the request.
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(c) 	Individuals who fail to respond within ten
days shall be given a second notice with a request to
furnish the information within five days.
(d) 	Failure to respond to the second notice
shall result in disqualification.
(e) 	Individuals are required to report to the
department any changes that would affect their
eligibility or monthly cost share responsibility
within ten days. 	[Eff 11/13/95 	] (Auth: 	HRS
§§346-14, 431N) (Imp: HRS §§346-14, 431N)
§17-1722-63 	Disqualification. 	(a) 	Individuals
may be disqualified from the special group for the
following reasons:
(1) 	Failure to meet the eligibility requirements
of section 17-1722-58;
(2) 	Request for disqualification by the
individual;
(3) 	Failure to recertify as provided in section
17-1722-61;
(4) 	Failure to provide requested verification of
eligibility factors as provided in section
17-1722-62;
(5) 	Failure to pay the required cost share for
two consecutive months.
(b) 	Disqualified individuals will be given a ten
day advance notice of disqualification. 	The notice
must specify the effective date of disqualification,
the reason for disqualification, and procedures to
appeal the disqualification.
(c) 	If an appeal is requested prior to the
effective date of the disqualification, the
disqualification will be stayed pending the outcome of
the appeal, provided the individual otherwise remains
eligible and makes all required cost share payments
(d) 	The procedures for administrative hearings
specified in chapter 17-1703 shall apply.
[Eff 11/13/95 	] (Auth: 	HRS §§346-14, 431N)
(Imp: HRS §§346-14, 431N)
§17-1722-64 	Cost share. (a) 	Individuals shall
be responsible for paying a monthly cost share
according to a schedule established by the department.
The amount of the cost share will be based on the
gross family income and the number of family members.
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(b) 	The monthly cost share for members with
income less than three hundred per cent of the FPL is
as follows:
POVERTY LEVEL 	COST SHARE
100% or less 	$0
101% - 125% 	$10
126% - 150% 	$15
151% - 200% 	$20
201% - 250% 	$40
251% - 300% 	$60
(c) 	State emergency appointees and their
eligible family members in the special group with
income exceeding three hundred per cent of the FPL
shall pay $73.50 in monthly cost share per family
member.
(d) 	The cost share shall be paid to the
department by the tenth day of the benefit month.
(e) 	A member who fails to to pay the cost share
for two consecutive months shall be disqualified.
[Eff 11/13/95 	] 	(Auth: 	HRS §§346-14, 431N)
(Imp: HRS §§346-14, 431N)
§17-1722-65 	Covered services. 	(a) 	Inpatient
hospital care shall be limited to five days per state
fiscal year per individual for the following services:
(1) 	Semi-private room and board and general
nursing care;
(2) 	Intensive care room and board and general
nursing care;
(3) 	Use of operating room and related
facilities, labor and delivery room,
inpatient anesthesia, radiology, laboratory
and other diagnostic services agreed upon by
the director;
(4) 	Drugs and medications administered while an
inpatient;
(5) 	Medically necessary dressings, casts, blood
derivatives and their administration, and
general medical supplies; and
(6) 	Five inpatient physician visits per fiscal
year.
(b) 	Physician office visits, including diagnosis
and treatment, consultations, and second opinions are
limited to twelve visits per fiscal year. 	Excluded
from this limitation are adult health assessments and
bona fide emergency room visits.
(c) 	Maternity care is limited to the following:
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(1) 	An all-inclusive fee that includes
outpatient diagnostic tests, prenatal care,
delivery, postpartum care, and complications
of pregnancy; and
(2) 	Two inpatient maternity days per fiscal year
that will not count as an inpatient day in
subsection (a) of this section.
(d) 	Ambulatory surgical care is limited to three
procedures per year and must be for medically
necessary care and not excluded in sections 17-1722-66
and 17-1737-84.
(e) 	Preventative services shall include:
(1) 	Health assessments comprised of services and
tests appropriate to the age and sex of the
individual; and
(2) 	Immunizations for diptheria, measles, mumps,
rubella, whooping cough, polio, tetanus,
influenza/pneumovex, hemophilus, influenza,
cholera, typhoid and typhus.
(f) 	Emergency care is restricted by the
following guidelines:
(1) 	Coverage is limited to those medical
conditions manifesting in acute symptoms of
such severity that the absence of medical
attention could reasonably be expected to
result in placing the enrollee's health in
serious jeopardy, or serious impairment to
bodily functions, or serious dysfunction of
any body organ or part; and
(2) 	The need for emergency service shall be
substantiated with appropriate documentation
from the enrollee's medical record or a
report from a hospital or treating
physician;
(g) 	Three mental health visits, to include
alcohol or drug dependency conditions, per fiscal
year, with one treatment per day
(h) 	The department shall not be responsible to
pay for services that are not described in this
section.
(i) 	The department will only pay for services
described in this section that are also allowable
under chapter 17-1737.
(j) 	Services to be provided by medicaid
providers described in chapter 17-1736, and
reimbursement for services will be based on the
medicaid reimbursement schedule.
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[Eff 11/13/95 	] 	(Auth: 	HRS §§346-14, 431N)
(Imp: HRS §§346-14, 431N)
§17-1722-66 	Excluded services. The department
will not be responsible to pay for the following
medical services or conditions:
(1) 	Custodial or domiciliary care;
(2) 	Charges for care in intermediate care or
skilled nursing facilities or intermediate
care facilities for the mentally retarded;
(3) 	Personal or comfort items as television,
telephone, guest trays, or a private room in
a hospital unless deemed medically necessary
by the treating physician;
(4) 	Emergency facility services for non-
emergency conditions;
(5) 	Medical, surgical or other health care
procedures, services, drugs or devices that
are considered experimental or
investigational;
(6) 	Transplant and open heart surgery procedures
and coverage of organ donor services;
(7) 	Prescription and non-prescription drugs and
hormones and their administration, except
those provided as an inpatient hospital
service;
(8) 	Sex change operations, investigation of and
0treatment for infertility, reversal of
sterilization, artificial insemination, in
vitro fertilization, and contraceptive
supplies and devices;
(9) 	Vision care services to include eyeglasses,
contact lenses, routine eye examinations,
including eye refraction, except as provided
as part of routine health assessments;
(10) 	Hearing aids, prosthesis, orthopedic shoes,
routine foot care;
(11) 	Purchase or rental of hearing aids or
durable medical equipment, including, but
not limited to hospital beds, wheel chairs,
walk-aids, or other medical equipment not
specifically listed as a covered service,
except as used while in the hospital;
(12) 	Dental services for temporomandilar joint
problems, except for repair necessitated by
accidental injury to sound natural teeth or
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jaw provided such repair commences within
ninety days of an accidental injury or as
soon as medically feasible, and provided
that the individual is eligible for covered
services at the time services are provided
and at the time of the accident;
(13) 	Orthopedic services and supplies;
(14) 	Biofeedback and acupuncture;
(15) 	Obesity treatment and weight loss programs;
(16) 	Medical services rendered outside the state;
(17) 	Services which are not medically necessary
to diagnose, treat, or to improve the
functioning of a malformed body member, even
though such services are not specifically
listed as exclusions;
(18) 	Cosmetic surgery, including treatment for
complications of cosmetic surgery;
(19) 	Reconstructive surgery for congenital or
acquired conditions that do not involve
severe functional impairment including but
not limited to keloids, mammoplasty except
for radical mastectomy, deviated septum for
which psychological or psychiatric
impairment alone shall not be a sufficient
basis for reconstructive surgery;
(20) 	Medical services received and paid for by
the Veterans Administration;
(21) 	Medical services that are payable under the
terms of worker compensation, automobile
medical and no-fault, underinsured or
uninsured motorist, or similar contract of
insurance;
(22) 	Conditions resulting from acts of war,
declared or not;
(23) 	Transportation to medical providers to
include ambulance services;
(24) 	Hospice services;
(25) 	Early and Periodic Screening Diagnostic and
Treatment (EPSDT) services;
(26) 	Outpatient renal services;
(27) 	Case management services;
(28) 	Personal care services;
(29) 	Private duty nursing and medical social
worker services;
(30) 	Services provided by the community long term
care branch;
(31) 	Home Health Agency (HHA) services;
(32) 	Targeted case management services;
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(33) 	State funeral payments services;
(34) 	Adult day health services;
(35) 	Chore services;
(36) 	Any service excluded by medicaid under
chapter 17-1737; or
(37) 	Services not provided by medicaid providers.
[Eff 11/13/95 	] 	(Auth: 	HRS §§346-14,
431N) (Imp: HRS §§346-14, 431N)
§§17-1722-67 to 17-1722-68 	(Reserved).
SUBCHAPTER 9
QUALIFYING INDIVIDUALS
§17-1722-69 	Purpose. 	The purpose of this
subchapter is to establish the requirements for
eligibility of a qualifying individual effective
January 1, 1998 and the limitations of coverage for
this group. 	[Eff 05/02/98 	] 	(Auth: 	HRS §346-
14; 42 C.F.R. §435.10) 	(Imp: 42 U.S.C.
§1396a(a)(10)(E))
§17-1722-70 	Eligibility requirements. 	A
qualifying individual shall be:
(1) 	Entitled to hospital insurance benefits
under the Medicare program;
(2) 	In receipt of income which exceeds one
hundred twenty per cent of the federal
poverty level but does not exceed one
hundred thirty-five per cent of the federal
poverty level;
(3) 	In possession of assets which do not exceed
three times the resource limit of the
supplemental security income program
adjusted by the annual percentage increase
in the consumer price index; and
(4) 	Required to meet basic eligibility
conditions detailed in chapter 17-1714.1,
including:
(A) 	A resident of the State;
(B) 	A citizen of the United States or a
qualified non-citizen;
(C) 	Not a resident of a public institution;
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and
(D) 	Furnish a social security number and
verification of that number. 	[Eff
05/02/98; am 01/31/09;
am 09/30/13] 	(Auth: 	HRS §346-14; 42
C.F.R. §435.10; 42 U.S.C.
§§1396a(a)(10)(E)(IV), 1396d(p)) 	(Imp:
42 U.S.C. §§1396a(a)(10)(E)(IV),
1396d(p))
§17-1722-71 	Treatment of income and assets. 	The
income and assets of a qualifying individual shall be
treated as described in chapters 17-1724.1 and 17-
1725.1. 	[Eff 	05/02/98; am 09/30/13] 	(Auth: 	HRS
§346-14; 42 C.F.R. §435.10; 42 U.S.C. §§1395w-
114(a)(3)(D), (1396a(a)(10)(E)(IV),
1396d(p)(3)(A)(ii)) 	(Imp: 	42 U.S.C. §§1395w-
114(a)(3)(D), (1396a(a)(10)(E)(IV),
1396d(p)(3)(A)(ii))
§17-1722-72 	Limitations of coverage. 	(a)
Coverage for an individual eligible for assistance as
a qualifying individual with countable income that
exceeds one hundred twenty percent of the federal
poverty limit but does not exceed one hundred
thirty-five percent, the payment of the Medicare
supplemental medical insurance premium.
(1) 	For a qualifying individual with countable
income that exceeds one hundred twenty
percent of the federal poverty limit but
does not exceed one hundred thirty-five
percent, the payment of the medicare
supplemental medical insurance premium; and
(2) 	For a qualifying individual with countable
income that exceeds one hundred thirty-five
percent of the federal poverty limit but
does not exceed one hundred seventy-five
percent, payment of the increment to the
medicare supplemental medical insurance
premium caused by the shifting of certain
home health services from the medicare
hospital insurance.
(b) 	A qualifying individual who receives
assistance one month in a calendar year is eligible
for coverage for the remaining balance of calendar
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year, provided all other eligibility requirements are
met. (c) 	Coverage under this subchapter is for a five
year period from 1998 through 2002 and subject to
allocation of funding for each calendar year.
[Eff 05/02/98; am 01/31/09 	] 	(Auth: 	HRS §346-
14; 42 C.F.R. §435.10) 	(Imp: 	42 U.S.C.
§1396a(a)(10)(E))
§17-1722-73 	Limit on the number of eligible
individuals. (a) 	Participation in this group shall be
limited in each calendar year to the estimated number
of eligible qualifying individuals whose aggregate
amount of assistance does not exceed the allocation of
funds for that calendar year.
(b) 	For the calendar year 1998, eligible
qualifying individuals shall be provided assistance in
the order in which they apply for assistance up to the
estimated limit in subsection (a).
(c) 	For calendar years after 1998, the following
individuals shall be given preference for
participation providing they were eligible for
coverage in the last month of the previous year and
who continue to be or become qualifying individuals:
(1) 	A qualifying individual;
(2) 	A qualified medicare beneficiary;
(3) 	A specified low income medicare beneficiary;
or
(4) 	A qualified disabled and working individual.
[Eff 05/02/98 	] 	(Auth: 	HRS §346-14;
42 C.F.R. §435.10) 	(Imp: 	42 U.S.C.
§1396a(a)(10)(E))
§17-1722-74 	Effective date of coverage.
Coverage as a qualifying individual begins in the
month in which eligibility starts, no earlier than the
first day of the three months prior to the month the
application is received by the department.
[Eff 05/02/98; am 01/31/09; am 06/11/09 	]
(Auth: 	HRS §346-14; 42 C.F.R. §435.10) 	(Imp: 	42
U.S.C. §1396a(a)(10)(E))
§§17-1722-75 to 17-1722-77 	(Reserved).
SUBCHAPTER 10
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MEDICAL ASSISTANCE FOR DISABLED CHILDREN
WHO LOSE SSI BENEFITS
§17-1722-78 	Purpose. 	The purpose of this
subchapter is to establish the requirements for
eligibility of disabled children who lose SSI benefits
because of provisions of the Personal Responsibilities
and Work Opportunity Reconciliation Act of 1996.
[Eff 05/02/98 	] 	(Auth: 	HRS §346-14; 42 C.F.R.
§435.10) 	(Imp: 42 U.S.C. §1396a(a)(10)(A)(i)(II))
§17-1722-79 	Eligibility requirements. 	Effective
July 1, 1997, a disabled child eligible for this group
shall meet all of the following conditions:
(1) 	The child lost SSI benefits because of the
enactment of section 211(a) the Personal
Responsibilities and Work Opportunity
Reconciliation Act of 1996;
(2) 	The child would continue to be eligible for
SSI but for the enactment of that section;
and
(3) 	The child shall meet basic eligibility
conditions detailed in chapter 17-1714.1,
including:
(A) 	A resident of the State;
(B) 	A citizen of the United States or a
legal resident non-citizen;
(C) 	Not a resident of a public institution;
(D) 	Assign to the department any benefits
from a third party for coverage of
medical expenses, to the extent of
medical costs paid by the department;
and
(E) 	Furnish a social security number and
verification of that number. 	[Eff
05/02/98; am 09/30/13] 	(Auth: 	HRS
§346-14; 42 C.F.R. §435.10) (Imp: 42
U.S.C. 1396a(a)(10)(A)(i)(II))
§17-1722-80 	Treatment of income and assets. 	The
income and assets of a child in this group shall be
treated as described in chapters 17-1724.1 and 17-
1725.1. 	[Eff 	05/02/98; am 09/30/13] 	(Auth: 	HRS
§346-14; 42 C.F.R. §435.10) 	(Imp: 42 U.S.C.
1396a(a)(10)(A)(i)(II))
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§17-1722-81 	Provision of coverage. Coverage for
individuals eligible for assistance in this subchapter
will be provided through enrollment in a health plan
in accordance with chapter 17-1720.1. 	[Eff 05/02/98;
am 01/31/09; am 09/30/13] 	(Auth: 	HRS §346-14; 42
C.F.R. §435.10) 	(Imp: 42 U.S.C.
§1396a(a)(10)(A)(i)(II))
§17-1722-82 	Effective date of coverage. Coverage
under this group shall begin:
(a) 	On the date of application;
(b) 	If specified by the applicant, retroactive
coverage may begin no earlier than the first day of
the three months prior to the month the application is
received by the department; or
(c) 	If ineligible in the month of application,
the date on which all eligibility requirements are met
by the applicant in a subsequent month. 	[Eff 05/02/98;
am 01/31/09; am 06/11/09 	] 	(Auth: 	HRS §346-14;
42 C.F.R. §435.10) 	(Imp: 42 U.S.C.
§1396a(a)(10)(A)(i)(II) §1396a(a)(10)(A)(i)(II))
§§17-1722-83 to 17-1722-85 	(Reserved).
SUBCHAPTER 11
LOW INCOME SUBSIDY PROGRAM
§17-1722-86 	Purpose. 	The purpose of this
subchapter is to establish the requirements for the
Low Income Subsidy program which provides assistance
with the full or partial costs related to Medicare
part D. 	Individuals who are deemed eligible shall
automatically be enrolled into the Low Income Subsidy
program while individuals who are not deemed eligible
must apply for this extra benefit. 	[Eff 12/26/05
] 	(Auth: 	HRS §346-14) 	(Imp: 42 C.F.R. §423.774;
423.904; Pub. L. 108-173)
§17-1722-87 	REPEALED. 	[R 09/30/13]
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§17-1722-88 	Application and eligibility
determination for the LIS. 	Individuals 	may apply for
the LIS and have their eligibility determined by the
department by submitting an application on a form
designated by the SSA upon request.
[Eff 12/26/05 	] 	(Auth: 	HRS §346-14) 	(Imp: 42
C.F.R. §423.774; 423.904; Pub. L. 108-173)
§17-1722-89 	Eligibility requirements.
Individuals who are eligible for the LIS shall:
(1) 	Have Medicare coverage;
(2) 	Have income as evaluated under SSI
regulations in 20 C.F.R. Part 416 Subparts K
and L that does not exceed one hundred fifty
percent of the FPL for the family of
applicable size;
(3) 	Have resources as evaluated under SSI
regulations in 20 C.F.R. Part 416 Subparts K
and L that do not exceed the resource
requirement under the MMA;
(4) 	Be a resident of the State;
(5) 	Not be an inmate of a public institution;
and
(6) 	Not be enrolled in PACE. 	[Eff 12/26/05
] (Auth: 	HRS §346-14) 	(Imp: 42 C.F.R.
§423.774; 423.904; Pub. L.
108-173)
§17-1722-90 	Benefits of the LIS program. 	The
LIS program provides full or partial assistance with
the subsidy for the coverage of the monthly premiums
and cost-sharing related to Medicare part D to
individuals based on the countable income of their
households:
(1) 	Full benefit dual eligible individuals with
countable income up to one hundred percent
of the FPL shall be responsible for:
(A) 	The portion of the premium that exceeds
the low income benchmark premium amount
for basic coverage; and
(B) 	Co-payments.
(2) 	Full benefit dual eligible individuals above
one hundred percent of the FPL, Medicare
Savings Program beneficiaries, SSI
recipients, and non-dual eligible
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individuals with countable income that does
not exceed one hundred thirty-five percent
of the FPL shall be responsible for:
(A) 	The portion of the premium that exceeds
the low income benchmark premium amount
for basic coverage; and
(B) 	Co-payments.
(3) 	Non-dual eligible individuals with income
that exceeds one hundred thirty-five percent
but does not exceed one hundred fifty
percent of the FPL shall be responsible for:
(A) 	The portion of the monthly low income
benchmark premium amount based on a
sliding scale;
(B) 	A deductible;
(C) 	The co-insurance portion incurred with
the Part D coverage gap; and
(D) 	Co-payments.
(4) 	Full benefit dual eligible individuals who
are residing in a medical institution will
not be subject to any cost-sharing related
to Medicare part D. 	[Eff 12/25/06 	]
(Auth: 	HRS §346-14) 	(Imp: 42 C.F.R.
§423.774; 423.904; Pub. L. 108-173)
§17-1722-91 	Eligibility redeterminations. 	(a)
Eligibility redeterminations for individuals for whom
the LIS determination was made by the State shall be
completed annually on a form designed by SSA.
(b) 	Individuals who fail to complete or fail to
cooperate in the completion of the eligibility
redetermination shall be ineligible for benefits under
the LIS. 	[Eff 12/26/05 	] 	(Auth: 	HRS §346-14)
(Imp: 42 C.F.R. §423.774; 423.904; Pub. L. 108-173)
§17-1722-92 	Reporting requirements. 	Individuals
who are deemed eligible are required to report changes
in circumstances to the department within ten working
days from the date of the change which may affect
their eligibility for the subsidy or the level of
subsidy. 	[Eff 12/26/05 	] 	(Auth: 	HRS §346-14)
(Imp: 42 C.F.R. §423.774; 423.904; Pub. L. 108-173)
§17-1722-93 	Termination of LIS benefits.
Benefits for the LIS shall be terminated effective the
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first day of the month following the month in which
the recipient is found ineligible if the conditions of
adverse notice are met in accordance with chapter 17-
1713. 	Reasons for termination include, but are not
limited to, the following:
(1) 	Loss of Medicare eligibility;
(2) 	An eligibility redetermination is not
completed as the recipient failed to provide
the department with requested verification
or provide a completed eligibility
redetermination form;
(3) 	Loss of residency;
(4) 	Inmate of a public institution; or
(5) 	Enrollment in PACE.
[Eff 12/26/05 	] 	(Auth: 	HRS §346-14)
(Imp: 42 C.F.R. §423.774; 423.904; Pub. L.
108-173)
§17-1722-94 	Appeals and hearings. 	All
beneficiaries for whom adverse actions were taken for
the LIS by the State shall be entitled to the appeal
process of chapter 17-1703. 	[Eff 12/26/05 	]
(Auth: 	HRS §346-14) 	(Imp: 42 C.F.R. §423.774;
423.904; Pub. L. 108-173)
§§17-1722-95 to 17-1722-115 	(Reserved).
SUBCHAPTER 12
STATE PHARMACY ASSISTANCE PROGRAM
§17-1722-116 	General provisions. 	(a) 	This
subchapter describes the eligibility requirements for
participation in the state pharmacy assistance
program. 	This program may pay all, or some of, the
required co-payments or co-insurance for prescriptions
under Medicare Part D to certain elderly and disabled
individuals and facilitate the enrollment and
coordination of benefits between the state pharmacy
assistance program and the Medicare Part D
Prescription Drug Benefit Program provided by the
Federal MMA.
(b) 	The department shall work with any CMS
approved benchmark prescription drug plan to provide
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the coordination of benefits between the state
pharmacy assistance program and the Medicare Part D
Prescription Drug Benefit Program.
(c) 	The program shall conduct ongoing quality
assurance activities determined by the department
(d) 	The provisions of chapter 1702 addressing
confidentiality shall apply to this program.
(e) 	The provisions of chapter 1703 addressing
administrative appeals shall apply to this program.
However, in applying chapter 1703 to this program, the
terms “eligibility branch,” “eligibility branch
administrator,” “med-QUEST eligibility office,” and
“eligibility worker” in chapter 1703 shall be replaced
by the term “med-QUEST division staff or their
designee.”
(f) 	The provisions of chapter 1704 addressing
fraud shall apply to this program. 	However, in
applying chapter 1704 to this program, the terms
“medical assistance” and “Medicaid” in chapter 1704
shall be replaced by the term “state pharmacy
assistance program.”
(g) 	The provisions of subchapter 7 of chapter
1705 addressing recipient recovery shall apply to this
program. 	However, in applying subchapter 7 to this
program, the term “medical assistance” in subchapter 7
of chapter 1705 shall be replaced by the term “state
pharmacy assistance program.”
(h) 	This program shall be administered by the
med-QUEST division and contractors identified by the
department of human services for the purposes of this
program. 	[Eff 12/29/05; am 02/18/08 	] 	(Auth:
SLH 2005, Act 209; SLH 2006, Act 264) 	(Imp: SLH 2005,
Act 209; SLH 2006, Act 264)
§17-1722-117 	REPEALED. 	[R 09/30/13]
§17-1722-118 	Application requirements. 	(a)
Individuals who qualify for medical assistance with
income not exceeding one hundred fifty per cent of the
federal poverty level, QMB’s, and SLMB’s shall be
automatically eligible.
(b) 	All other individuals may apply for the
state pharmacy assistance program on a form designated
by the department. 	[Eff 12/29/05; am 02/18/08 	]
(Auth: 	SLH 2005, Act 209; SLH 2006, Act 264) 	(Imp:
SLH 2005, Act 209; SLH 2006, Act 264)
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§17-1722-119 	Eligibility requirements. 	An
individual shall meet the following requirements to
participate in the state pharmacy assistance program:
(1) 	Is a resident of Hawaii;
(2) 	Receives Medicare Part D
Prescription Drug Benefits;
(3) 	Has countable income at or below one
hundred fifty per cent of the federal
poverty level for a household of applicable
size; and
(4) 	Meets the asset test in accordance with the
low income subsidy program addressed in
subchapter 11;
(5) 	Is not receiving MMA prescription drug
benefits through a retirement or union plan;
(6) 	Does not have public assistance
prescription coverage other than Medicaid,
Medicare and Hawaii Rx Plus;
(7) 	Is not enrolled in a private sector or
government sponsored plan or any insurance
providing payments for prescription drugs;
and
(8) 	Is enrolled in a benchmark prescription drug
plan established by CMS. [Eff 12/29/05;
am 02/18/08 	] 	(Auth: 	SLH 2005, Act
209; SLH 2006, Act 264) 	(Imp: SLH 2005, Act
209; SLH 2006, Act 264)
§17-1722-120 	Benefits. 	(a) 	For an individual
eligible for the state pharmacy assistance program,
the program may pay all, or some of, the required co-
payments or co-insurance actually paid only for drug
claims defined as covered under the federal Medicare
Part D Prescription Drug Benefit Program.
(b) 	The state pharmacy assistance program is the
payor of last resort. 	[Eff 12/29/05;
am 02/18/08 	](Auth: 	SLH 2005, Act 209) 	(Imp:
SLH 2005, Act 209
§17-1722-121 	Eligibility reviews. 	(a)
Eligibility reviews shall be conducted at intervals
determined necessary by the department.
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(b) 	Individuals who fail to complete or fail to
cooperate in the completion of the eligibility review
shall be ineligible for benefits under this program.
[Eff 12/29/05 	] 	(Auth: 	SLH 2005, Act 209)
(Imp: 	SLH 2005, Act 209)
§17-1722-122 	State pharmacy assistance program
card. 	Program members may be issued a state pharmacy
assistance program card from the department or the
department’s designee. 	[Eff 12/29/05 	]
(Auth: 	SLH 2005, Act 209) 	(Imp: 	SLH 2005, Act 209)
§17-1722-123 	Quality control reviews. 	(a)
Quality reviews shall be conducted at intervals
determined necessary by the department.
(b) 	Pharmacies or PDP’s selected for reviews
shall furnish the requested information within ten
working days of the request.
(c) 	Failure to cooperate in the completion of a
review shall result in termination from the program.
[Eff 12/29/05 	] 	(Auth: 	SLH 2005, Act 209)
(Imp: 	SLH 2005, Act 209)
§17-1722-124 	Reporting requirements.
Individuals are required to report changes in
circumstances to the department within ten working
days from the date of the change which may affect
their eligibility. 	[Eff 12/29/05 	] 	(Auth: 	HRS
§346-14; SLH 2005, Act 209) 	(Imp: 	SLH 2005, Act 209)
§17-1722-125 	Termination. 	(a) 	An individual’s
participation under this program shall be terminated
for any of the following reasons:
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(1) 	Fails to meet the eligibility requirements
set forth in section 17-1722-119.
(2) 	The participant voluntarily terminates
participation in the program;
(3) 	The participant failed to recertify;
(4) 	The participant failed to cooperate with the
quality control reviewer;
(5) 	Death of the participating individual;
or
(6) 	There are insufficient funds in
the state pharmacy assistance program
special fund.
(7) 	Death of the participating individual; or
(8) 	There is insufficient funds in the program
due to lack of revenues received from
rebates paid by pharmaceutical
manufacturers.
(b) 	An individual shall be given a ten day
advance notice of termination. 	The notice must
specify the effective date of termination, the reason
for termination, and procedures to appeal the
termination.
(c) 	If an appeal is requested prior to the
effective date of termination, the termination shall
be stayed pending the outcome of the appeal, provided
the individual otherwise remains eligible. 	[Eff
12/29/05; am 02/18/08 	] 	(Auth: 	SLH 2005, Act
209; SLH 2006, Act 264) 	(Imp: SLH 2005, Act 209; SLH
2006, Act 264)
§17-1722-126 	Administration of the program. 	(a)
The department may contract with a third party or
parties to administer any component of the program,
including outreach, eligibility, enrollment, claims,
administration, rebate negotiations and recovery, and
redistribution, in order to coordinate the
prescription drug benefits of the state pharmacy
assistance program and the federal Medicare Part D
Prescription Drug Benefit Program.
(b) 	Any third party that contracts with the
department to administer any component of the program
shall be established either at no cost to the State or
on a contingency-fee basis and with no up-front costs
to the State.
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(c) 	Any contract to administer any program
component shall prohibit the contractor from receiving
any compensation or other benefits from any
pharmaceutical manufacturer participating in the
program. 	[Eff 12/29/05 	] 	(Auth: 	SLH 2005,
Act 209) 	(Imp: 	SLH 2005, Act 209)
§17-1722-127 	Rebate agreement. 	(a) 	A drug
manufacturer that sells prescription drugs in the
State and who enters into a rebate agreement with the
department shall be required to make rebate payments
to the department according to a schedule established
by the department.
(b) 	The department or its designee shall attempt
to obtain a rebate amount that is equal to or greater
than the amount of any discount, rebate, or price
reduction for prescription drugs provided to
the federal government pursuant to 42 U.S.C. Section
1396r. 	[Eff 12/29/05 	] 	(Auth: 	SLH 2005,
Act 209) 	(Imp: 	SLH 2005, Act 209)
§17-1722-128 	Pharmacy or PDP reimbursement. 	(a)
A pharmacy or a PDP shall submit claims to the
department or its designee to verify the amount
charged to program members. 	On a schedule to be
determined by the department, the department shall
reimburse each pharmacy or PDP for the co-payments or
any portion thereof charged to, but not collected
from, program members.
(b) 	The department or its designee shall collect
prescription drug utilization data necessary to
calculate the amount of the manufacturer rebate under
section 17-1722-127. 	The department shall protect the
confidentiality of the data as required under State or
federal law, rule, or regulation.
(c) 	The department shall not impose transaction
charges on participating pharmacies or PDPs that
submit claims or receive payments under the program.
[Eff 12/29/05 	] 	(Auth: 	SLH 2005, Act
209) 	(Imp: 	SLH 2005, Act 209)
§17-1722-129 	State pharmacy assistance program
special fund. 	(a) 	The state pharmacy assistance
program special fund that is established within the
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State treasury and administered by the department,
shall include:
(1) 	All moneys received from manufacturers who
pay rebates as provided in section
17-1722-127;
(2) 	Appropriations made by the legislature to
the fund; and
(3) 	Any other revenues designated for the fund
(b) 	Moneys in this special fund shall be used
for the following purposes:
(1) 	Reimbursement payments to participating
pharmacies for co-payments or co-insurance
required under the federal Medicare Part D
Prescription Pharmacy Benefit Program as
provided to state pharmacy assistance
program members; and
(2) 	The administration or operation of the state
pharmacy assistance program, including but
not limited to, salary and benefits of
employees, computer costs, and contracted
services as provided in section 17-1722-126;
All interest on special fund balances shall
accrue to the special fund. 	Upon
dissolution of the state pharmacy assistance
program special fund, any unencumbered
moneys in the fund shall lapse to the
general fund.
(c) 	The department shall spend all revenues
received from rebates paid by pharmaceutical
manufacturers pursuant to section 17-1722-127 to pay
for the benefits to enrollees in the state pharmacy
assistance program and the costs of administering the
program. 	[Eff 12/29/05; am 02/18/08 	] 	(Auth:
SLH 2005, Act 209; SLH 2006, Act 264) 	(Imp: SLH 2005,
Act 209; SLH 2006, Act 264)
SUBCHAPTER 13
MEDICAL ASSISTANCE FOR DISABLED ADULT CHILDREN
WHO LOSE SSI BENEFITS
§17-1722-145 	Purpose. 	The purpose of this
subchapter is to establish the requirements for
eligibility of disabled adults who are receiving OASDI
benefits as a dependent adult child. 	[Eff 09/10/09
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] 	(Auth: 	HRS §346-14; 42 C.F.R. §435.10) (Imp: 42
U.S.C. §1383c(c))
§17-1722-146 	REPEALED. 	[R 09/30/13]
§17-1722-147 	Eligibility requirements. 	An
individual who is eligible for medical assistance as a
DAC shall meet all of the following conditions:
(1) 	Is 18 years of age or older;
(2) 	Is receiving OASDI benefits as a DAC;
(3) 	Received SSI/SSP benefits based on blindness
or disability, which began before age 22;
(4) 	Lost SSI/SSP eligibility due to receipt of
OASDI benefits as a DAC;
(5) 	Would be eligible for SSI/SSP benefits if
the OASDI benefit that caused SSI
ineligibility, or an increase in that OASDI
benefit, was disregarded;
(6) 	Assigns to the department any benefits from
a third party for coverage of medical
expenses, to the extent of medical costs
paid by the department; and
(7) 	Meets the general eligibility conditions of
chapter 17-1714. [Eff 	09/10/09 	]
(Auth: 	HRS §346-14; 42 C.F.R. §435.10)
(Imp: 42 U.S.C. §1383c(c))
§17-1722-148 	Financial eligibility
determination. 	(a) The income and assets of an
individual under this subchapter shall be treated as
specified under chapters 17-1724 and 17-1725 for a
blind or disabled individual.
(b) 	An individual whose countable assets exceed
the SSI personal reserve standard shall be ineligible
for benefits under this subchapter.
(c) 	The amount of the OASDI benefit that exceeds
the SSI/SSP payment standard shall be disregarded.
(d) 	An individual whose countable income after
the disregard of OASDI income exceeds the SSI/SSP
payment standard shall not be eligible for benefits as
a DAC.
(e) 	The disregarded OASDI benefit amount shall
not apply to post-eligibility treatment of income for
a DAC who is receiving long term care level of service
in a nursing home or medical facility. 	[Eff 	09/10/09
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] 	(Auth: 	HRS §346-14; 42 C.F.R. §435.10) 	((Imp: 42
U.S.C. §1383c(c))
§17-1722-149 	Provision of coverage. 	Individuals
eligible as a DAC shall be eligible for all services
covered by the medical assistance program. 	[Eff
09/10/09 	] (Auth: 	HRS §346-14; 42 C.F.R.
§435.10) 	(Imp: 42 U.S.C. §1383c(c))
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