S.Amdt. 2714Senate109th Congress (2005-2007)

S.Amdt. 2714

What it does: Rewrites page 19, lines 19–22
Submitted February 2, 2006

What it changes

1 change to H.R. 4297

Replaces text
  1. Rewrites page 19, lines 19–22

    ReplacesPrinted page

    Removes page 19, lines 19–22 of the printed bill. See that page

    Inserted: SEC. 203. ELIGIBILITY OF ALL UNINSURED CHILDREN FOR SCHIP.

    Inserted: (a) In General.--Section 2110(b) of the Social Security Act (42 U.S.C. 1397jj(b)) is amended--

    Inserted: (1) in paragraph (1)--

    Inserted: (A) by striking subparagraph (B); and

    Inserted: (B) by redesignating subparagraph (C) as subparagraph (B);

    Inserted: (2) in paragraph (2)--

    Inserted: (A) by striking "include" and all that follows through "a child who is an" and inserting "include a child who is an"; and

    Inserted: (B) by striking the semicolon and all that follows through the period and inserting a period; and

    Inserted: (3) by striking paragraph (4).

    Inserted: (b) No Exclusion of Children With Access to High-Cost Coverage.--Section 2110(b)(3) of the Social Security Act (42 U.S.C. 1397jj(b)(3)) is amended--

    Inserted: (1) in the paragraph heading, by striking "rule" and inserting "rules";

    Inserted: (2) by striking "A child shall not be considered to be described in paragraph (1)(C)" and inserting the following:

    Show 76 more inserted paragraphs

    Inserted: "(A) Certain non federally funded coverage.--A child shall not be considered to be described in paragraph (1)(C)"; and

    Inserted: (3) by adding at the end the following:

    Inserted: "(B) No exclusion of children with access to high-cost coverage.--A State may include a child as a targeted vulnerable child if the child has access to coverage under a group health plan or health insurance coverage and the total annual aggregate cost for premiums, deductibles, cost sharing, and similar charges imposed under the group health plan or health insurance coverage with respect to all targeted vulnerable children in the child's family exceeds 5 percent of such family's income for the year involved.".

    Inserted: (c) Conforming Amendments.--

    Inserted: (1) Titles XIX and XXI of the Social Security Act (42 U.S.C. 1396 et seq.; 1397aa et. seq.) are amended by striking "targeted low-income" each place it appears and inserting "targeted vulnerable".

    Inserted: (2) Section 2101(a) of such Act (42 U.S.C. 1397aa(a)) is amended by striking "uninsured, low-income" and inserting "low-income".

    Inserted: (3) Section 2102(b)(3)(C) of such Act (42 U.S.C. 1397bb(b)(3)(C)) is amended by inserting ", particularly with respect to children whose family income exceeds 200 percent of the poverty line" before the semicolon.

    Inserted: (4) Section 2102(b)(3)(E), section 2105(a)(1)(D)(ii), paragraphs (1)(C) and (2) of section 2107, and subsections (a)(1) and (d)(1)(B) of section 2108 of such Act (42 U.S.C. 1397bb(b)(3)(E); 1397ee(a)(1)(D)(ii); 1397gg; 1397hh) are amended by striking "low-income" each place it appears.

    Inserted: (5) Section 2110(a)(27) of such Act (42 U.S.C. 1397jj(a)(27)) is amended by striking "eligible low-income individuals" and inserting "targeted vulnerable individuals".

    Inserted: (d) Effective Date.--The amendments made by this section take effect on October 1, 2006.

    Inserted: SEC. 203A. INCREASE IN FEDERAL FINANCIAL PARTICIPATION UNDER SCHIP AND MEDICAID FOR STATES WITH SIMPLIFIED ENROLLMENT AND RENEWAL PROCEDURES FOR CHILDREN.

    Inserted: (a) SCHIP.--Section 2105(c)(2) of the Social Security Act (42 U.S.C. 1397ee(c)(2)) is amended by adding at the end the following:

    Inserted: "(C) Nonapplication of limitation and increase in federal payment for states with simplified enrollment and renewal procedures.--

    Inserted: "(i) In general.--Notwithstanding subsection (a)(1) and subparagraph (A)--

    Inserted: "(I) the limitation under subparagraph (A) on expenditures for items described in subsection (a)(1)(D) shall not apply with respect to expenditures incurred to carry out any of the outreach strategies described in clause (ii), but only if the State carries out the same outreach strategies for children under title XIX; and

    Inserted: "(II) the enhanced FMAP for a State for a fiscal year otherwise determined under subsection (b) shall be increased by 5 percentage points (without regard to the application of the 85 percent limitation under that subsection) with respect to such expenditures.

    Inserted: "(ii) Outreach strategies described.--For purposes of clause (i), the outreach strategies described in this clause are the following:

    Inserted: "(I) Presumptive eligibility.--The State provides for presumptive eligibility for children under this title and under title XIX.

    Inserted: "(II) Adoption of 12-month continuous eligibility.--The State provides that eligibility for children shall not be redetermined more often than once every year under this title or under title XIX.

    Inserted: "(III) Elimination of asset test.--The State does not apply any asset test for eligibility under this title or title XIX with respect to children.

    Inserted: "(IV) Passive renewal.--The State provides for the automatic renewal of the eligibility of children for assistance under this title and under title XIX if the family of which such a child is a member does not report any changes to family income or other relevant circumstances, subject to verification of information from State databases.".

    Inserted: (b) Medicaid.--

    Inserted: (1) In general.--Section 1902(l) of the Social Security Act (42 U.S.C. 1396a(l)) is amended--

    Inserted: (A) in paragraph (3), by inserting "subject to paragraph (5)", after "Notwithstanding subsection (a)(17),"; and

    Inserted: (B) by adding at the end the following:

    Inserted: "(5)(A) Notwithstanding the first sentence of section 1905(b), with respect to expenditures incurred to carry out any of the outreach strategies described in subparagraph (B) for individuals under 19 years of age who are eligible for medical assistance under subsection (a)(10)(A), the Federal medical assistance percentage is equal to the enhanced FMAP described in section 2105(b) and increased under section 2105(c)(2)(C)(i)(II), but only if the State carries out the same outreach strategies for children under title XXI.

    Inserted: "(B) For purposes of subparagraph (A), the outreach strategies described in this subparagraph are the following:

    Inserted: "(i) Presumptive eligibility.--The State provides for presumptive eligibility for such individuals under this title and title XXI.

    Inserted: "(ii) Adoption of 12-month continuous eligibility.--The State provides that eligibility for such individuals shall not be redetermined more often than once every year under this title or under title XXI.

    Inserted: "(iii) Elimination of asset test.--The State does not apply any asset test for eligibility under this title or title XXI with respect to such individuals.

    Inserted: "(iv) Passive renewal.--The State provides for the automatic renewal of the eligibility of such individuals for assistance under this title and under title XXI if the family of which such an individual is a member does not report any changes to family income or other relevant circumstances, subject to verification of information from State databases.".

    Inserted: (2) Conforming amendment.--The first sentence of section 1905(b) of the Social Security Act (42 U.S.C. 1396d(b)) is amended by striking "section 1933(d)" and inserting "sections 1902(l)(5) and 1933(d)".

    Inserted: (c) Effective Date.--The amendments made by this section take effect on October 1, 2006.

    Inserted: SEC. 203B. LIMITATION ON PAYMENTS TO STATES THAT HAVE AN ENROLLMENT CAP BUT HAVE NOT EXHAUSTED THE STATE'S AVAILABLE ALLOTMENTS.

    Inserted: (a) In General.--Section 2105 of the Social Security Act (42 U.S.C. 1397ee) is amended by adding at the end the following:

    Inserted: "(h) Limitation on Payments to States That Have an Enrollment Cap but Have Not Exhausted the State's Available Allotments.--

    Inserted: "(1) In general.--Notwithstanding any other provision of this section, payment shall not be made to a State under this section if the State has an enrollment freeze, enrollment cap, procedures to delay consideration of, or not to consider, submitted applications for child health assistance, or a waiting list for the submission or consideration of such applications or for such assistance, and the State has not fully expended the amount of all allotments available with respect to a fiscal year for expenditure by the State, including allotments for prior fiscal years that remain available for expenditure during the fiscal year under subsection (c) or (g) of section 2104 or that were redistributed to the State under subsection (f) or (g) of section 2104.

    Inserted: "(2) Rule of construction.--Paragraph (1) shall not be construed as prohibiting a State from establishing regular open enrollment periods for the submission of applications for child health assistance.".

    Inserted: (b) Effective Date.--The amendments made by this section take effect on October 1, 2006.

    Inserted: SEC. 203C. ADDITIONAL ENHANCEMENT TO FMAP TO PROMOTE EXPANSION OF COVERAGE TO ALL UNINSURED CHILDREN UNDER MEDICAID AND SCHIP.

    Inserted: (a) In General.--Title XXI (42 U.S.C. 1397aa et seq.) is amended by adding at the end the following:

    Inserted: "SEC. 2111. ADDITIONAL ENHANCEMENT TO FMAP TO PROMOTE EXPANSION OF COVERAGE TO ALL UNINSURED CHILDREN UNDER MEDICAID AND SCHIP.

    Inserted: "(a) In General.--Notwithstanding subsection (b) of section 2105 (and without regard to the application of the 85 percent limitation under that subsection), the enhanced FMAP with respect to expenditures in a quarter for providing child health assistance to uninsured children whose family income exceeds 200 percent of the poverty line, shall be increased by 5 percentage points.

    Inserted: "(b) Uninsured Child Defined.--

    Inserted: "(1) In general.--For purposes of subsection (a), subject to paragraph (2), the term 'uninsured child' means an uncovered child who has been without creditable coverage for a period determined by the Secretary, except that such period shall not be less than 6 months.

    Inserted: "(2) Special rule for newborn children.--In the case of a child 12 months old or younger, the period determined under paragraph (1) shall be 0 months and such child shall be considered uninsured upon birth.

    Inserted: "(3) Special rule for children losing medicaid or schip coverage due to increased family income.--In the case of a child who, due to an increase in family income, becomes ineligible for coverage under title XIX or this title during the period beginning on the date that is 12 months prior to the date of enactment of the All Kids Health Insurance Coverage Act of 2005 and ending on the date of enactment of such Act, the period determined under paragraph (1) shall be 0 months and such child shall be considered uninsured upon the date of enactment of the All Kids Health Insurance Coverage Act of 2005.

    Inserted: "(4) Monitoring and adjustment of period required to be uninsured.--The Secretary shall--

    Inserted: "(A) monitor the availability and retention of employer-sponsored health insurance coverage of dependent children; and

    Inserted: "(B) adjust the period determined under paragraph (1) as needed for the purpose of promoting the retention of private or employer-sponsored health insurance coverage of dependent children and timely access to health care services for such children.".

    Inserted: (b) Cost-Sharing for Children in Families With High Family Income.--Section 2103(e)(3) of the Social Security Act (42 U.S.C. 1397cc(e)(3)) is amended by adding at the end the following new subparagraph:

    Inserted: "(C) Children in families with high family income.--

    Inserted: "(i) In general.--For children not described in subparagraph (A) whose family income exceeds 400 percent of the poverty line for a family of the size involved, subject to paragraphs (1)(B) and (2), the State shall impose a premium that is not less than the cost of providing child health assistance to children in such families, and deductibles, cost sharing, or similar charges shall be imposed under the State child health plan (without regard to a sliding scale based on income), except that the total annual aggregate cost-sharing with respect to all such children in a family under this title may not exceed 5 percent of such family's income for the year involved.

    Inserted: "(ii) Inflation adjustment.--The dollar amount specified in clause (i) shall be increased, beginning with fiscal year 2008, from year to year based on the percentage increase in the consumer price index for all urban consumers (all items; United States city average). Any dollar amount established under this clause that is not a multiple of $100 shall be rounded to the nearest multiple of $100.".

    Inserted: (c) Additional Allotments for States Providing Coverage to All Uninsured Children in the State.--

    Inserted: (1) In general.--Section 2104 of the Social Security Act (42 U.S.C. 1397dd) is amended by inserting after subsection (c) the following:

    Inserted: "(d) Additional Allotments for States Providing Coverage to All Uninsured Children in the State.--

    Inserted: "(1) Appropriation; total allotment.--For the purpose of providing additional allotments to States to provide coverage of all uninsured children (as defined in section 2111(b)) in the State under the State child health plan, there is appropriated, out of any money in the Treasury not otherwise appropriated--

    Inserted: "(A) for fiscal years 2007, 2008, and 2009, $3,000,000,000;

    Inserted: "(B) for fiscal year 2010, $5,000,000,000; and

    Inserted: "(C) for fiscal year 2011, $7,000,000,000.

    Inserted: "(2) State and territorial allotments.--

    Inserted: "(A) In general.--In addition to the allotments provided under subsections (b) and (c), subject to subparagraph (B) and paragraphs (3) and (4), of the amount available for the additional allotments under paragraph (1) for a fiscal year, the Secretary shall allot to each State with a State child health plan that provides coverage of all uninsured children (as so defined) in the State approved under this title--

    Inserted: "(i) in the case of such a State other than a commonwealth or territory described in subsection (ii), the same proportion as the proportion of the State's allotment under subsection (b) (determined without regard to subsection (f)) to 98.95 percent of the total amount of the allotments under such section for such States eligible for an allotment under this subparagraph for such fiscal year; and

    Inserted: "(ii) in the case of a commonwealth or territory described in subsection (c)(3), the same proportion as the proportion of the commonwealth's or territory's allotment under subsection (c) (determined without regard to subsection (f)) to 1.05 percent of the total amount of the allotments under such section for commonwealths and territories eligible for an allotment under this subparagraph for such fiscal year.

    Inserted: "(B) Minimum allotment.--

    Inserted: "(i) In general.--No allotment to a State for a fiscal year under this subsection shall be less than 50 percent of the amount of the allotment to the State determined under subsections (b) and (c) for the preceding fiscal year.

    Inserted: "(ii) Pro rata reductions.--The Secretary shall make such pro rata reductions to the allotments determined under this subsection as are necessary to comply with the requirements of clause (i).

    Inserted: "(C) Availability and redistribution of unused allotments.--In applying subsections (e) and (f) with respect to additional allotments made available under this subsection, the procedures established under such subsections shall ensure such additional allotments are only made available to States which have elected to provide coverage under section 2111.

    Inserted: "(3) Use of additional allotment.--Additional allotments provided under this subsection are not available for amounts expended before October 1, 2005. Such amounts are available for amounts expended on or after such date for child health assistance for uninsured children (as defined in section 2111(b)).

    Inserted: "(4) Requiring election to provide coverage.--No payments may be made to a State under this title from an allotment provided under this subsection unless the State has made an election to provide child health assistance for all uninsured children (as so defined) in the State, including such children whose family income exceeds 200 percent of the poverty line.".

    Inserted: (2) Conforming amendments.--Section 2104 of the Social Security Act (42 U.S.C. 1397dd) is amended--

    Inserted: (A) in subsection (a), by inserting "subject to subsection (d)," after "under this section,";

    Inserted: (B) in subsection (b)(1), by inserting "and subsection (d)" after "Subject to paragraph (4)"; and

    Inserted: (C) in subsection (c)(1), by inserting "subject to subsection (d)," after "for a fiscal year,".

    Inserted: (d) Effective Date.--The amendments made by this section take effect on October 1, 2006.

    Original wording

    On page 19, strike lines 19 through 22 and insert the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed

SA 2714. Mr. DURBIN (for himself, Mrs. Murray, Mr. Lieberman, Mr. Lautenberg, and Mrs. Clinton) submitted an amendment intended to be proposed by him to the bill H.R. 4297, to provide for reconciliation pursuant to section 201(b) of the concurrent resolution on the budget for fiscal year 2006; which was ordered to lie on the table; as follows:

On page 19, strike lines 19 through 22 and insert the following:

SEC. 203. ELIGIBILITY OF ALL UNINSURED CHILDREN FOR SCHIP.

(a) In General.--Section 2110(b) of the Social Security Act (42 U.S.C. 1397jj(b)) is amended--

(1) in paragraph (1)--

(A) by striking subparagraph (B); and

(B) by redesignating subparagraph (C) as subparagraph (B);

(2) in paragraph (2)--

(A) by striking “include” and all that follows through “a child who is an” and inserting “include a child who is an”; and

(B) by striking the semicolon and all that follows through the period and inserting a period; and

(3) by striking paragraph (4).

(b) No Exclusion of Children With Access to High-Cost Coverage.--Section 2110(b)(3) of the Social Security Act (42 U.S.C. 1397jj(b)(3)) is amended--

(1) in the paragraph heading, by striking “rule” and inserting “rules”;

(2) by striking “A child shall not be considered to be described in paragraph (1)(C)” and inserting the following:

“(A) Certain non federally funded coverage.--A child shall not be considered to be described in paragraph (1)(C)”; and

(3) by adding at the end the following:

“(B) No exclusion of children with access to high-cost coverage.--A State may include a child as a targeted vulnerable child if the child has access to coverage under a group health plan or health insurance coverage and the total annual aggregate cost for premiums, deductibles, cost sharing, and similar charges imposed under the group health plan or health insurance coverage with respect to all targeted vulnerable children in the child's family exceeds 5 percent of such family's income for the year involved.”.

(c) Conforming Amendments.--

(1) Titles XIX and XXI of the Social Security Act (42 U.S.C. 1396 et seq.; 1397aa et. seq.) are amended by striking “targeted low-income” each place it appears and inserting “targeted vulnerable”.

(2) Section 2101(a) of such Act (42 U.S.C. 1397aa(a)) is amended by striking “uninsured, low-income” and inserting “low-income”.

(3) Section 2102(b)(3)(C) of such Act (42 U.S.C. 1397bb(b)(3)(C)) is amended by inserting “, particularly with respect to children whose family income exceeds 200 percent of the poverty line” before the semicolon.

(4) Section 2102(b)(3)(E), section 2105(a)(1)(D)(ii), paragraphs (1)(C) and (2) of section 2107, and subsections (a)(1) and (d)(1)(B) of section 2108 of such Act (42 U.S.C. 1397bb(b)(3)(E); 1397ee(a)(1)(D)(ii); 1397gg; 1397hh) are amended by striking “low-income” each place it appears.

(5) Section 2110(a)(27) of such Act (42 U.S.C. 1397jj(a)(27)) is amended by striking “eligible low-income individuals” and inserting “targeted vulnerable individuals”.

(d) Effective Date.--The amendments made by this section take effect on October 1, 2006.

SEC. 203A. INCREASE IN FEDERAL FINANCIAL PARTICIPATION UNDER SCHIP AND MEDICAID FOR STATES WITH SIMPLIFIED ENROLLMENT AND RENEWAL PROCEDURES FOR CHILDREN.

(a) SCHIP.--Section 2105(c)(2) of the Social Security Act (42 U.S.C. 1397ee(c)(2)) is amended by adding at the end the following:

“(C) Nonapplication of limitation and increase in federal payment for states with simplified enrollment and renewal procedures.--

“(i) In general.--Notwithstanding subsection (a)(1) and subparagraph (A)--

“(I) the limitation under subparagraph (A) on expenditures for items described in subsection (a)(1)(D) shall not apply with respect to expenditures incurred to carry out any of the outreach strategies described in clause (ii), but only if the State carries out the same outreach strategies for children under title XIX; and

“(II) the enhanced FMAP for a State for a fiscal year otherwise determined under subsection (b) shall be increased by 5 percentage points (without regard to the application of the 85 percent limitation under that subsection) with respect to such expenditures.

“(ii) Outreach strategies described.--For purposes of clause (i), the outreach strategies described in this clause are the following:

“(I) Presumptive eligibility.--The State provides for presumptive eligibility for children under this title and under title XIX.

“(II) Adoption of 12-month continuous eligibility.--The State provides that eligibility for children shall not be redetermined more often than once every year under this title or under title XIX.

“(III) Elimination of asset test.--The State does not apply any asset test for eligibility under this title or title XIX with respect to children.

“(IV) Passive renewal.--The State provides for the automatic renewal of the eligibility of children for assistance under this title and under title XIX if the family of which such a child is a member does not report any changes to family income or other relevant circumstances, subject to verification of information from State databases.”.

(b) Medicaid.--

(1) In general.--Section 1902(l) of the Social Security Act (42 U.S.C. 1396a(l)) is amended--

(A) in paragraph (3), by inserting “subject to paragraph (5)”, after “Notwithstanding subsection (a)(17),”; and

(B) by adding at the end the following:

“(5)(A) Notwithstanding the first sentence of section 1905(b), with respect to expenditures incurred to carry out any of the outreach strategies described in subparagraph (B) for individuals under 19 years of age who are eligible for medical assistance under subsection (a)(10)(A), the Federal medical assistance percentage is equal to the enhanced FMAP described in section 2105(b) and increased under section 2105(c)(2)(C)(i)(II), but only if the State carries out the same outreach strategies for children under title XXI.

“(B) For purposes of subparagraph (A), the outreach strategies described in this subparagraph are the following:

“(i) Presumptive eligibility.--The State provides for presumptive eligibility for such individuals under this title and title XXI.

“(ii) Adoption of 12-month continuous eligibility.--The State provides that eligibility for such individuals shall not be redetermined more often than once every year under this title or under title XXI.

“(iii) Elimination of asset test.--The State does not apply any asset test for eligibility under this title or title XXI with respect to such individuals.

“(iv) Passive renewal.--The State provides for the automatic renewal of the eligibility of such individuals for assistance under this title and under title XXI if the family of which such an individual is a member does not report any changes to family income or other relevant circumstances, subject to verification of information from State databases.”.

(2) Conforming amendment.--The first sentence of section 1905(b) of the Social Security Act (42 U.S.C. 1396d(b)) is amended by striking “section 1933(d)” and inserting “sections 1902(l)(5) and 1933(d)”.

(c) Effective Date.--The amendments made by this section take effect on October 1, 2006.

SEC. 203B. LIMITATION ON PAYMENTS TO STATES THAT HAVE AN ENROLLMENT CAP BUT HAVE NOT EXHAUSTED THE STATE'S AVAILABLE ALLOTMENTS.

(a) In General.--Section 2105 of the Social Security Act (42 U.S.C. 1397ee) is amended by adding at the end the following:

“(h) Limitation on Payments to States That Have an Enrollment Cap but Have Not Exhausted the State's Available Allotments.--

“(1) In general.--Notwithstanding any other provision of this section, payment shall not be made to a State under this section if the State has an enrollment freeze, enrollment cap, procedures to delay consideration of, or not to consider, submitted applications for child health assistance, or a waiting list for the submission or consideration of such applications or for such assistance, and the State has not fully expended the amount of all allotments available with respect to a fiscal year for expenditure by the State, including allotments for prior fiscal years that remain available for expenditure during the fiscal year under subsection (c) or (g) of section 2104 or that were redistributed to the State under subsection (f) or (g) of section 2104.

“(2) Rule of construction.--Paragraph (1) shall not be construed as prohibiting a State from establishing regular open enrollment periods for the submission of applications for child health assistance.”.

(b) Effective Date.--The amendments made by this section take effect on October 1, 2006.

SEC. 203C. ADDITIONAL ENHANCEMENT TO FMAP TO PROMOTE EXPANSION OF COVERAGE TO ALL UNINSURED CHILDREN UNDER MEDICAID AND SCHIP.

(a) In General.--Title XXI (42 U.S.C. 1397aa et seq.) is amended by adding at the end the following:

“SEC. 2111. ADDITIONAL ENHANCEMENT TO FMAP TO PROMOTE EXPANSION OF COVERAGE TO ALL UNINSURED CHILDREN UNDER MEDICAID AND SCHIP.

“(a) In General.--Notwithstanding subsection (b) of section 2105 (and without regard to the application of the 85 percent limitation under that subsection), the enhanced FMAP with respect to expenditures in a quarter for providing child health assistance to uninsured children whose family income exceeds 200 percent of the poverty line, shall be increased by 5 percentage points.

“(b) Uninsured Child Defined.--

“(1) In general.--For purposes of subsection (a), subject to paragraph (2), the term ‘uninsured child' means an uncovered child who has been without creditable coverage for a period determined by the Secretary, except that such period shall not be less than 6 months.

“(2) Special rule for newborn children.--In the case of a child 12 months old or younger, the period determined under paragraph (1) shall be 0 months and such child shall be considered uninsured upon birth.

“(3) Special rule for children losing medicaid or schip coverage due to increased family income.--In the case of a child who, due to an increase in family income, becomes ineligible for coverage under title XIX or this title during the period beginning on the date that is 12 months prior to the date of enactment of the All Kids Health Insurance Coverage Act of 2005 and ending on the date of enactment of such Act, the period determined under paragraph (1) shall be 0 months and such child shall be considered uninsured upon the date of enactment of the All Kids Health Insurance Coverage Act of 2005.

“(4) Monitoring and adjustment of period required to be uninsured.--The Secretary shall--

“(A) monitor the availability and retention of employer-sponsored health insurance coverage of dependent children; and

“(B) adjust the period determined under paragraph (1) as needed for the purpose of promoting the retention of private or employer-sponsored health insurance coverage of dependent children and timely access to health care services for such children.”.

(b) Cost-Sharing for Children in Families With High Family Income.--Section 2103(e)(3) of the Social Security Act (42 U.S.C. 1397cc(e)(3)) is amended by adding at the end the following new subparagraph:

“(C) Children in families with high family income.--

“(i) In general.--For children not described in subparagraph (A) whose family income exceeds 400 percent of the poverty line for a family of the size involved, subject to paragraphs (1)(B) and (2), the State shall impose a premium that is not less than the cost of providing child health assistance to children in such families, and deductibles, cost sharing, or similar charges shall be imposed under the State child health plan (without regard to a sliding scale based on income), except that the total annual aggregate cost-sharing with respect to all such children in a family under this title may not exceed 5 percent of such family's income for the year involved.

“(ii) Inflation adjustment.--The dollar amount specified in clause (i) shall be increased, beginning with fiscal year 2008, from year to year based on the percentage increase in the consumer price index for all urban consumers (all items; United States city average). Any dollar amount established under this clause that is not a multiple of $100 shall be rounded to the nearest multiple of $100.”.

(c) Additional Allotments for States Providing Coverage to All Uninsured Children in the State.--

(1) In general.--Section 2104 of the Social Security Act (42 U.S.C. 1397dd) is amended by inserting after subsection (c) the following:

“(d) Additional Allotments for States Providing Coverage to All Uninsured Children in the State.--

“(1) Appropriation; total allotment.--For the purpose of providing additional allotments to States to provide coverage of all uninsured children (as defined in section 2111(b)) in the State under the State child health plan, there is appropriated, out of any money in the Treasury not otherwise appropriated--

“(A) for fiscal years 2007, 2008, and 2009, $3,000,000,000;

“(B) for fiscal year 2010, $5,000,000,000; and

“(C) for fiscal year 2011, $7,000,000,000.

“(2) State and territorial allotments.--

“(A) In general.--In addition to the allotments provided under subsections (b) and (c), subject to subparagraph (B) and paragraphs (3) and (4), of the amount available for the additional allotments under paragraph (1) for a fiscal year, the Secretary shall allot to each State with a State child health plan that provides coverage of all uninsured children (as so defined) in the State approved under this title--

“(i) in the case of such a State other than a commonwealth or territory described in subsection (ii), the same proportion as the proportion of the State's allotment under subsection (b) (determined without regard to subsection (f)) to 98.95 percent of the total amount of the allotments under such section for such States eligible for an allotment under this subparagraph for such fiscal year; and

“(ii) in the case of a commonwealth or territory described in subsection (c)(3), the same proportion as the proportion of the commonwealth's or territory's allotment under subsection (c) (determined without regard to subsection (f)) to 1.05 percent of the total amount of the allotments under such section for commonwealths and territories eligible for an allotment under this subparagraph for such fiscal year.

“(B) Minimum allotment.--

“(i) In general.--No allotment to a State for a fiscal year under this subsection shall be less than 50 percent of the amount of the allotment to the State determined under subsections (b) and (c) for the preceding fiscal year.

“(ii) Pro rata reductions.--The Secretary shall make such pro rata reductions to the allotments determined under this subsection as are necessary to comply with the requirements of clause (i).

“(C) Availability and redistribution of unused allotments.--In applying subsections (e) and (f) with respect to additional allotments made available under this subsection, the procedures established under such subsections shall ensure such additional allotments are only made available to States which have elected to provide coverage under section 2111.

“(3) Use of additional allotment.--Additional allotments provided under this subsection are not available for amounts expended before October 1, 2005. Such amounts are available for amounts expended on or after such date for child health assistance for uninsured children (as defined in section 2111(b)).

“(4) Requiring election to provide coverage.--No payments may be made to a State under this title from an allotment provided under this subsection unless the State has made an election to provide child health assistance for all uninsured children (as so defined) in the State, including such children whose family income exceeds 200 percent of the poverty line.”.

(2) Conforming amendments.--Section 2104 of the Social Security Act (42 U.S.C. 1397dd) is amended--

(A) in subsection (a), by inserting “subject to subsection (d),” after “under this section,”;

(B) in subsection (b)(1), by inserting “and subsection (d)” after “Subject to paragraph (4)”; and

(C) in subsection (c)(1), by inserting “subject to subsection (d),” after “for a fiscal year,”.

(d) Effective Date.--The amendments made by this section take effect on October 1, 2006.

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Senate amendment submitted

February 2, 2006