PART 1331—STATE HEALTH INSURANCE ASSISTANCE PROGRAM Authority: 42 U.S.C. 1395b-4. Source: 81 FR 5918, Feb. 4, 2016, unless otherwise noted. § 1331.1 Basis, scope, and definition. (a) Basis. (b) Scope of part. (1) Conditions of eligibility for the grant. (2) Minimum levels of funding for those States qualifying for the grants. (3) Reporting requirements. (c) Definition. § 1331.2 Eligibility for grants. To be eligible for a grant under this subpart, the State must have an approved Medicare supplemental regulatory program under section 1882 of the Act and submit a timely application to ACL that meets the requirements of— (a) Section 4360 of Public Law 101-508 (42 U.S.C. 1395b-4); (b) This subpart; and (c) The applicable solicitation for grant applications issued by ACL. § 1331.3 Availability of grants. ACL awards grants to States subject to availability of funds, and if applicable, subject to the satisfactory progress in the State's project during the preceding grant period. The criteria by which progress is evaluated and the performance standards for determining whether satisfactory progress has been made are specified in the terms and conditions included in the notice of grant award sent to each State. ACL advises each State as to when to make application, what to include in the application, and provides information as to the timing of the grant award and the duration of the grant award. ACL also provides an estimate of the amount of funds that may be available to the State. § 1331.4 Number and size of grants. (a) General. (1) New program grants. (2) Existing program enhancement grants. (b) Grant award. (1) A fixed portion is awarded to States in the following amounts: (i) Each of the 50 States, $75,000. (ii) The District of Columbia, $75,000. (iii) Puerto Rico, $75,000. (iv) American Samoa, $25,000. (v) Guam, $25,000. (vi) The Virgin Islands, $25,000. (2) A variable portion which is based on the number and location of Medicare beneficiaries residing in the State is awarded to each State. The variable amount a particular State receives is determined as set forth in paragraph (c) of this section. (c) Calculation of variable portion of the grant. (i) The amount of available funds, and (ii) A comparison of each State with the average of all of the States (except the State being compared) with respect to three factors that relate to the size of the State's Medicare population and where that population resides. (2) The factors ACL uses to compare States' Medicare populations comprise separate components of the variable amount. These factors, and the extent to which they each contribute to the variable amount, are as follows: (i) Approximately 75 percent of the variable amount is based on the number of Medicare beneficiaries living in the State as a percentage of all Medicare beneficiaries nationwide. (ii) Approximately 10 percent of the variable amount is based on the percentage of the State's total population who are Medicare beneficiaries. (iii) Approximately 15 percent of the variable amount is based on the percentage of the State's Medicare beneficiaries that reside in rural areas (“rural areas” are defined as all areas not included within a metropolitan Statistical Area). (3) Based on the foregoing four factors (that is, the amount of available funds and the three comparative factors), ACL determines a variable rate for each participating State for each grant period. (d) Submission of revised budget. § 1331.5 Limitations. (a) Use of grants. (b) Maintenance of effort. (1) Must not use the grant to supplant funds for activities that were conducted immediately preceding the date of the initial award of a grant made under this subpart and funded through other sources (including in-kind contributions). (2) Must maintain the activities of the program at least at the level that those activities were conducted immediately preceding the initial award of a grant made under this subpart. § 1331.6 Reporting requirements. A State that receives a grant under this subpart must submit at least one annual report to ACL and any additional reports as ACL may prescribe in the notice of grant award. ACL advises the State of the requirements concerning the frequency, timing, and contents of reports in the notice of grant award that it sends to the State. § 1331.7 Administration. (a) General. (b) Notice. (c) Appeal.