To prevent a severe reduction in the Federal medical assistance percentage determined for a State for fiscal year 2006 and to extend rebates for prescription drugs to enrollees in Medicaid managed care organizations.

SA 2365. Mr. BINGAMAN (for himself, Mr. Rockefeller, Mrs. Lincoln,
Mr. Pryor, and Mr. Leahy) proposed an amendment to the bill S. 1932, to
provide for reconciliation pursuant to section 202(a) of the concurrent
resolution on the budget for fiscal year 2006 (H. Con. Res. 95); as
follows:

On page 188, after line 24, add the following:

SEC. 6037. LIMITATION ON SEVERE REDUCTION IN THE MEDICAID
FMAP FOR FISCAL YEAR 2006.

(a) Limitation on Reduction.--In no case shall the FMAP for
a State for fiscal year 2006 be less than the greater of the
following:
(1) 2005 fmap decreased by the applicable percentage
points.--The FMAP determined for the State for fiscal year
2005, decreased by--
(A) 0.1 percentage points in the case of Delaware and
Michigan;
(B) 0.3 percentage points in the case of Kentucky; and
(C) 0.5 percentage points in the case of any other State.
(2) Computation without retroactive application of
rebenchmarked per capita income.--The FMAP that would have
been determined for the State for fiscal year 2006 if the per
capita incomes for 2001 and 2002 that was used to determine
the FMAP for the State for fiscal year 2005 were used.
(b) Scope of Application.--The FMAP applicable to a State
for fiscal year 2006 after the application of subsection (a)
shall apply only for purposes of titles XIX and XXI of the
Social Security Act (including for purposes of making
disproportionate share hospital payments described in section
1923 of such Act (42 U.S.C. 1396r-4) and payments under such
titles that are based on the enhanced FMAP described in
section 2105(b) of such Act (42 U.S.C. 1397ee(b))) and shall
not apply with respect to payments under title IV of such Act
(42 U.S.C. 601 et seq.).
(c) Definitions.--In this section:
(1) FMAP.--The term ``FMAP'' means the Federal medical
assistance percentage, as defined in section 1905(b) of the
Social Security Act (42 U.S.C. 1396d(b)).
(2) State.--The term ``State'' has the meaning given such
term for purposes of title XIX of the Social Security Act (42
U.S.C. 1396 et seq.).
(d) Repeal.--Effective as of October 1, 2006, this section
is repealed and shall not apply to any fiscal year after
fiscal year 2006.

SEC. 6038. EXTENSION OF PRESCRIPTION DRUG REBATES TO
ENROLLEES IN MEDICAID MANAGED CARE
ORGANIZATIONS.

(a) In General.--Section 1927(j)(1) (42 U.S.C. 1396r-
8(j)(1)) is amended by striking ``dispensed'' and all that
follows through the period and inserting ``are not subject to
the requirements of this section if such drugs are--
``(A) dispensed by health maintenance organizations that
contract under section 1903(m); and
``(B) subject to discounts under section 340B of the Public
Health Service Act (42 U.S.C. 256b).''.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect on the date of enactment of this Act and
apply to rebate agreements entered into or renewed under
section 1927 of the Social Security Act (42 U.S.C. 1396r-8)
on or after such date.
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