HB1002: HB1002 Social services; transfer Medicaid coverage for foster children from managed care to fee-for-service

Currently, Georgia foster children get their Medicaid health coverage through a care management organization, a private insurer under contract with the state to manage benefits. This bill would end that arrangement for foster children specifically. Once the state's current contract with the care management organization expires or is renewed, or earlier if the contract allows it, the Department of Community Health would shift all Medicaid coverage for foster children to fee-for-service Medicaid, where the state pays providers directly for services rather than through a managed care plan. The bill defines 'foster child' broadly to include children under 18 in foster care as well as young people up to age 26 who aged out of foster care and were on Medicaid at 18. The state would submit any paperwork needed to get federal approval for the switch. The new rule would repeal itself automatically on December 31, 2028, and the law would take effect as soon as the Governor signs it.

• Requires the Department of Community Health to move foster children's Medicaid coverage from a care management organization to fee-for-service Medicaid.
• Defines 'foster child' to cover children under 18 in the foster care system and former foster youth up to age 26 who had Medicaid at 18.
• Requires the state to submit any Medicaid state plan amendments needed to get federal approval for the switch.
• Sets the switch to happen when the current managed care contract expires or renews, or earlier if the contract terms allow.
• Automatically repeals this new rule on December 31, 2028, ending the requirement unless lawmakers act again.

Foster children and former foster youth up to age 26 who receive Medicaid, the Department of Human Services' Division of Family and Children Services, the Department of Community Health, and the care management organization currently under contract to manage their Medicaid benefits.

Foster children would get their medical care paid for directly by the state instead of through a private managed care plan, which could change which providers they can see and how claims and referrals are handled, until the arrangement expires at the end of 2028.

• Adds new Code Section 49-4-159.5 to Georgia's medical assistance law (O.C.G.A. Title 49, Chapter 4, Article 7).
• Defines 'contract' as the existing agreement between the Department of Community Health and a care management organization covering foster children.
• Defines 'foster child' to include current foster youth under 18 and former foster youth up to age 26 who had Medicaid coverage at 18.
• Requires the transfer to fee-for-service Medicaid upon the contract's expiration or renewal, or earlier if the contract permits.
• Requires submission of any necessary Medicaid state plan amendments to the federal Department of Health and Human Services.
• Sets an automatic repeal date of December 31, 2028 for this new Code section.
• Makes the Act effective upon the Governor's signature or upon becoming law without the Governor's signature.

1. 2026-02-19House Committee Favorably Reported (House)
2. 2026-01-28House Second Readers (House)
3. 2026-01-27House First Readers (House)
4. 2026-01-16House Hopper (House)

• Beth Camp (R, HD-135)Primary sponsor
• James Hatchett (R, HD-155)

• foster care
• Medicaid
• managed care
• child welfare
• health coverage