S. 264

Children's Health Protection and Eligibility Act of 2003

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        [Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 264 Introduced in Senate (IS)]

108th CONGRESS
1st Session
S. 264

To amend title XXI of the Social Security Act to extend the
availability of allotments to States for fiscal years 1998 through
2000, and for other purposes.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

January 30, 2003

Ms. Cantwell (for herself and Mrs. Murray) introduced the following
bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

A BILL

To amend title XXI of the Social Security Act to extend the
availability of allotments to States for fiscal years 1998 through
2000, and for other purposes.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Children's Health Protection and
Eligibility Act of 2003''.

SEC. 2. RETENTION AND REDISTRIBUTION OF SCHIP ALLOTMENTS FOR FISCAL
YEARS 1998 THROUGH 2000.

(a) Extension of Availability of Fiscal Years 1998 and 1999
Allotments.--Section 2104(g) of the Social Security Act (42 U.S.C.
1397dd(g)) is amended--
(1) in paragraph (1)(B)(ii), by striking ``2002'' and
inserting ``2004'';
(2) in paragraph (2)(A)(i), by striking ``2002'' and
inserting ``2004''; and
(3) in paragraph (2)(A)(ii), by striking ``2002'' and
inserting ``2004''.
(b) Application and Modification of BIPA Rule for Redistribution
and Extended Availability to Allotments for Fiscal Year 2000.--Section
2104(g) of the Social Security Act (42 U.S.C. 1397dd(g)), as amended by
subsection (a), is amended--
(1) in the subsection heading, by striking ``and 1999'' and
inserting ``, 1999, and 2000'';
(2) in paragraph (1)--
(A) in subparagraph (A)--
(i) in the matter preceding clause (i)--
(I) by inserting ``or for fiscal
year 2000 by the end of fiscal year
2002,'' after ``2001,''; and
(II) by striking ``1998 or 1999''
and inserting ``1998, 1999, or 2000'';
(ii) in clause (i)--
(I) in subclause (I), by striking
``or'' at the end;
(II) in subclause (II), by striking
the period and inserting ``; or''; and
(III) by adding at the end the
following:
``(III) the fiscal year 2000
allotment, the amount by which the
State's expenditures under this title
in fiscal years 2000, 2001, and 2002
exceed the State's allotment for fiscal
year 2000 under subsection (b).''; and
(iii) in clause (ii), by striking ``1998 or
1999'' and inserting ``1998, 1999, or 2000'';
and
(B) in subparagraph (B), in the matter preceding
clause (i), by striking ``1998 or 1999'' and inserting
``1998, 1999, or 2000'';
(3) in paragraph (2)--
(A) in the paragraph heading, by striking ``1998
and 1999'' and inserting ``1998, 1999, and 2000''; and
(B) in subparagraph (A), by adding at the end the
following:
``(iii) Fiscal year 2000 allotment.--
``(I) In general.--Except as
provided in subclause (II), of the
amounts allotted to a State pursuant to
this section for fiscal year 2000 that
were not expended by the State by the
end of fiscal year 2002, the amount
specified in subparagraph (B) for
fiscal year 2000 for such State shall
remain available for expenditure by the
State through the end of fiscal year
2004.
``(II) States with high
unemployment.--In the case of a State
for which the average rate of
unemployment in the State for any
consecutive 2 months of 2002 or 2003
exceeds 6 percent, as determined by the
Secretary of Labor, the total amount
allotted to the State pursuant to this
section for fiscal year 2000 that was
not expended by the State by the end of
fiscal year 2002 shall remain available for expenditure by the State
through the end of fiscal year 2004 and shall not be subject to
redistribution under paragraph (1).''; and
(4) in paragraph (3)--
(A) by striking ``or fiscal year 1999'' and
inserting ``, fiscal year 1999, or fiscal year 2000'';
and
(B) by striking ``or November 30, 2001,'' and
inserting ``, November 30, 2001, or November 30,
2002,''.
(c) Effective Date.--The amendments made by this section shall take
effect as if included in the enactment of section 801 of Medicare,
Medicaid, and SCHIP Benefits Improvement and Protection Act of 2000
(114 Stat. 2763A-578), as enacted into law by section 1(a)(6) of Public
Law 106-554.

SEC. 3. AUTHORITY FOR QUALIFYING STATES TO USE SCHIP FUNDS FOR MEDICAID
EXPENDITURES.

(a) Authority for Qualifying States To Use Portion of SCHIP Funds
for Medicaid Expenditures.--Section 2105 of the Social Security Act (42
U.S.C. 1397ee) is amended by adding at the end the following:
``(g) Authority for Qualifying States To Use Certain Funds for
Medicaid Expenditures.--
``(1) State option.--
``(A) In general.--Notwithstanding any other
provision of law, with respect to fiscal year 2003, a
qualifying State (as defined in paragraph (2)) may
elect to use any or all of the aggregate amount of
funds available to the State under this title from
allotments made to the State (or redistributed to the
State) for fiscal years 1998 through 2000, plus an
amount equal to 10 percent of allotments made to the
State for each of fiscal years 2001 through 2003, for
payments for such fiscal years under title XIX in
accordance with subparagraph (B).
``(B) Payments to states.--
``(i) In general.--In the case of a
qualifying State that has elected the option
described in subparagraph (A), subject to the
total amount of funds described with respect to
the State in subparagraph (A), the Secretary
shall pay the State an amount each quarter
equal to the additional amount that would have
been paid to the State under title XIX for
expenditures of the State for the fiscal year
described in clause (ii) if the enhanced FMAP
(as determined under subsection (b)) had been
substituted for the Federal medical assistance
percentage (as defined in section 1905(b)) of
such expenditures.
``(ii) Expenditures described.--For
purposes of clause (i), the expenditures
described in this clause are expenditures for
the fiscal year for providing medical
assistance under title XIX to individuals who
have not attained age 19 or who are pregnant
women.
``(C) Additional payments permitted for certain
states.--
``(i) In general.--With respect to fiscal
year 2004 and each fiscal year thereafter, a
qualifying State that also has a State child
health plan that (whether implemented under
title XIX or this title) has the highest income
eligibility standard permitted under this title
as of January 1, 2001, may elect to have the
Secretary pay the State from the allotment for
the State for such fiscal year under subsection
(b) or (c) of section 2104, an amount each
quarter equal to the additional amount that
would have been paid to the State under title
XIX for expenditures of the State for the
fiscal year described in clause (ii) if the
enhanced FMAP (as determined under subsection
(b)) had been substituted for the Federal
medical assistance percentage (as defined in
section 1905(b)) of such expenditures.
``(ii) Expenditures described.--For
purposes of clause (i), the expenditures
described in this clause are expenditures for
the fiscal year for providing medical
assistance under title XIX to individuals who
have not attained age 19 and whose family
income exceeds the minimum income eligibility
level the State is required to establish under
section 1902(l) but does not exceed 200 percent
of the poverty line.
``(2) Qualifying state.--In this subsection, the term
`qualifying State' means a State that satisfies the following:
``(A) No reduction in medicaid or schip income
eligibility.--Since January 1, 2001, the State has not
reduced the income, assets, or resource requirements
for eligibility for medical assistance under title XIX
or for child health assistance under this title.
``(B) No waiting list imposed.--The State does not
impose any numerical limitation, waiting list, or
similar limitation on the eligibility of children for
medical assistance under title XIX or child health
assistance under this title and does not limit the
acceptance of applications for such assistance.
``(C) Provides assistance to all children who apply
and qualify.--The State provides medical assistance
under title XIX or child health assistance under this
title to all children in the State who apply for and
meet the eligibility standards for such assistance.
``(D) Protection against inability to pay premiums
or copayments.--The State ensures that no child loses
coverage under title XIX or this title, or is denied
needed care, as a result of the child's parents'
inability to pay any premiums or cost-sharing required
under such title.
``(E) Additional requirements.--The State has
implemented at least 3 of the following policies and
procedures (relating to coverage of children under
title XIX and this title):
``(i) Simplified application form.--With
respect to children who are eligible for
medical assistance under title XIX, the State
uses the same simplified application form
(including, if applicable, permitting
application other than in person) for purposes
of establishing eligibility for assistance
under title XIX and this title.
``(ii) Elimination of asset test.--The
State does not apply any asset test for
eligibility under title XIX or this title with
respect to children.
``(iii) Adoption of 12-month continuous
enrollment.--The State provides that
eligibility shall not be regularly redetermined
more often than once every year under this
title or for children eligible for medical
assistance under title XIX.
``(iv) Same verification and
redetermination policies; automatic
reassessment of eligibility.--With respect to
children who are eligible for medical
assistance under section 1902(a)(10)(A), the
State provides for initial eligibility
determinations and redeterminations of
eligibility using the same verification
policies (including with respect to face-to-
face interviews), forms, and frequency as the
State uses for such purposes under this title,
and, as part of such redeterminations, provides
for the automatic reassessment of the
eligibility of such children for assistance
under title XIX and this title.
``(v) Outstationing enrollment staff.--The
State provides for the receipt and initial
processing of applications for benefits under
this title and for children under title XIX at
facilities defined as disproportionate share
hospitals under section 1923(a)(1)(A) and
Federally-qualified health centers described in
section 1905(l)(2)(B) consistent with section
1902(a)(55).''.
(b) Effective Date.--The amendment made by this section shall take
effect as if enacted on October 1, 2002.
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