Protect Medicaid Act

This bill amends Title XIX of the Social Security Act to prohibit federal Medicaid funding for the administrative costs of providing health benefits to noncitizens who are not lawfully admitted permanent residents and are ineligible for medical assistance due to their immigration status. This restriction specifically targets administrative expenditures, while allowing funding for systems designed to ensure compliance with the prohibition. The legislation also mandates a comprehensive report from the Inspector General of the Department of Health and Human Services to Congress within 180 days. This report must detail how states separate administrative costs for Medicaid versus health benefits for these noncitizens, and evaluate state procedures for ensuring compliance with federal funding prohibitions. It will also describe states' methods for financing these health benefits, including through provider taxes and intergovernmental transfers. Finally, the report will analyze the extent to which these noncitizens receive covered outpatient drugs purchased under federal programs. It will also assess the effect this provision has on the average manufacturer price of such drugs, including whether prices would be lower if not provided to this group.