To prohibit CHIP coverage for higher income children and to prohibit any payments to a State from its CHIP allotments for any fiscal year quarter in which the State Medicaid income eligibility level for children is greater than the income eligibility level for children under CHIP.

SA 75. Mr. ROBERTS (for himself, Mr. Hatch, and Ms. Collins)
submitted an amendment intended to be proposed by him to the bill H.R.
2, to amend title XXI of the Social Security Act to extend and improve
the Children's Health Insurance Program, and for other purposes; as
follows:

Strike section 114 and insert the following:

SEC. 114. LIMITATION ON FEDERAL MATCHING PAYMENTS.

(a) Denial of Federal Matching Payments for Coverage of
Higher Income Children.--Section 2105(c) (42 U.S.C.
1397ee(c)) is amended by adding at the end the following new
paragraph:
``(8) Denial of payments for expenditures for child health
assistance for higher income children.--
``(A) In general.--No payment may be made under this
section for any expenditures for providing child health
assistance or health benefits coverage under a State child
health plan under this title, including under a waiver under
section 1115, with respect to any child whose gross family
income (as defined by the Secretary) exceeds the lower of--
``(i) $65,000; or
``(ii) the median State income (as determined by the
Secretary).
``(B) No payments from allotments under this title if
medicaid income eligibility level for children is greater.--
No payment may be made under this section from an allotment
of a State for any expenditures for a fiscal year quarter for
providing child health assistance or health benefits coverage
under the State child health plan under this title to any
individual if the income eligibility level (expressed as a
percentage of the poverty line) for children who are eligible
for medical assistance under the State plan under title XIX
under any category specified in subparagraph (A) or (C) of
section 1902(a)(10) in effect during such quarter is greater
than the income eligibility level (as so expressed) for
children in effect during such quarter under the State child
health plan under this title.''.
______