(1) The Department of Human Services shall establish and maintain the Medicaid Eligibility Verification System that is designed to prevent fraud in the establishment and maintenance of Medicaid eligibility.
(2) In establishing the Medicaid Eligibility Verification System, the department shall have the flexibility to determine whether the state shall be an “assessment state” or a “determination state” for purposes of Medicaid eligibility determinations by the federally facilitated marketplace.
(3) As used in this subsection: “Assessment state” means a state with a federally facilitated marketplace that can elect to have the federally facilitated marketplace make assessments of Medicaid eligibility and then transfer the account of an individual to the state Medicaid agency for a final determination; and
(4) “Determination state” means a state that requires the eligibility determination made by the federally facilitated marketplace to be accepted by the state Medicaid agency.