To amend title XIX of the Social Security Act to permit States to expand Medicaid eligibility to uninsured, poor adults.

Summary: Keep America Healthy Act of 2001 - Amends title XIX (Medicaid) of the Social Security Act (SSA) to make a new optional Medicaid eligibility group for individuals between ages 21 and 65 whose family income does not exceed a State-specified percentage up to 200 percent of the applicable poverty line. Authorizes the State also to require the individual's resources not to exceed whatever level the State may establish, so long as it is not more restrictive than the requirements of the Supplemental Security Income program under SSA title XVI (Supplemental Security Income). Provides for the application to such new group of the enhanced Federal medical assistance percentage described under SSA title XXI (State Children's Health Insurance Program).Amends SSA title XI to provide for an increase in the Medicaid payment limit for territories to accommodate expanded coverage for residents of Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Keep America Healthy Act of 2001''.

SEC. 2. OPTIONAL MEDICAID COVERAGE OF UNINSURED, POOR ADULTS.

    (a) Availability of Medicaid Coverage for Uninsured, Poor Adults.--
            (1) Addition of optional coverage group.--Section 
        1902(a)(10)(A)(ii) of the Social Security Act (42 U.S.C. 
        1396a(a)(10)(A)(ii)) is amended--
                    (A) by striking ``or'' at the end of subclause 
                (XVII);
                    (B) by striking the semicolon at the end of 
                subclause (XVIII) and inserting ``, or''; and
                    (C) by adding at the end the following new 
                subclause:
                                    ``(XIX) described in subsection 
                                (cc);''.
            (2) Eligibility standards for new eligibility group.--
        Section 1902 of such Act is further amended by adding at the 
        end the following new subsection:
    ``(cc) For purposes of subsection (a)(10)(A)(ii)(XIX), individuals 
described in this subsection are individuals who meet the following 
requirements:
            ``(1) The individual is at least 21 years of age but is 
        under 65 years of age.
            ``(2) The income of the individual's family does not exceed 
        a percentage (not to exceed 200 percent) specified by the State 
        of the poverty line (as defined in section 2110(c)(5)) 
        applicable to a family of the size involved and, at the option 
        of a State, the individual's resources do not exceed such 
        resource level as the State may establish, so long as such 
        resource level is not more restrictive than the resources an 
        individual may have and obtain benefits under the supplemental 
        security income program under title XVI.''.
    (b) Provision of Enhanced Federal Medical Assistance as Incentive 
for States To Increase Coverage.--
            (1) Application of enhanced federal medical assistance 
        percentage.--Section 1905(b)(4) of such Act (42 U.S.C. 
        1396d(b)(4)) is amended by inserting ``or section 
        1902(a)(10)(A)(ii)(XIX)'' after ``section 
        1902(a)(10)(A)(ii)(XVIII)''.
            (2) Increase in medicaid payment limit for territories to 
        accommodate expanded coverage for residents of puerto rico, the 
        virgin islands, guam, american samoa, and the northern mariana 
        islands.--Section 1108 of such Act (42 U.S.C. 1308) is 
        amended--
                    (A) in subsection (f), by striking ``subsection 
                (g)'' and inserting ``subsections (g) and (h)''; and
                    (B) by adding at the end the following new 
                subsection:
    ``(h) Increase in Medicaid Payment Limit To Accommodate Expanded 
Coverage Under the Keep America Healthy Act.--(1) With respect to 
fiscal year 2002 and each succeeding fiscal year, if Puerto Rico, the 
Virgin Islands, Guam, the Northern Mariana Islands, or American Samoa 
provides for coverage of individuals under section 
1902(a)(10)(A)(ii)(XIX) in a fiscal year, the amounts otherwise 
determined for the respective territory under subsections (f) and (g) 
for such fiscal year shall be increased by a percentage (estimated by 
the Secretary) equal to 120 percent of the State average Keep America 
Healthy percentage, estimated by the Secretary under paragraph (2) for 
the fiscal year involved.
    ``(2) For each such fiscal year the Secretary shall estimate a 
State average Keep America Healthy percentage equal to (A) the total 
Federal payments under title XIX for the fiscal year for the 50 States 
and the District of Columbia that are attributable to individuals made 
eligible for benefits under section 1902(a)(10)(A)(ii)(XIX), divided by 
(B) the total Federal payments under such title the fiscal year for 
such States and District.''.
    (c) Conforming and Technical Amendments.--(1) Section 1903(f)(4) of 
such Act (42 U.S.C. 1396b(f)(4)) is amended by inserting 
``1902(a)(10)(A)(ii)(XIX),'' after ``1902(a)(10)(A)(ii)(XVIII),''.
    (2) Section 1905(a) of such Act (42 U.S.C. 1396d(a)) is amended, in 
the matter before paragraph (1)--
            (A) by striking ``or'' at the end of clause (xi);
            (B) by adding ``or'' at the end of clause (xii); and
            (C) by inserting after clause (xii) the following new 
        clause:
            ``(xiii) individuals described in section 1902(cc),''.
    (3) Section 1905(u)(4) of such Act (42 U.S.C. 1396d(u)(4)) is 
amended by inserting before the period at the end the following: ``for 
individuals not covered under section 1902(a)(10)(A)(ii)(XIX)''.
    (4)(A) Section 1902 of such Act (42 U.S.C. 1396a), as amended by 
section 702(b) of the Medicare, Medicaid, and SCHIP Benefits 
Improvement and Protection Act of 2000 (as enacted into law by section 
1(a)(6) of Public Law 106-554), is amended by redesignating the 
subsection (aa) added by such section as subsection (bb).
    (B) Section 1902(a)(15) of such Act (42 U.S.C. 1396a(a)(15)), as 
added by section 702(a)(2) of the Medicare, Medicaid, and SCHIP 
Benefits Improvement and Protection Act of 2000 (as so enacted into 
law), is amended by striking ``subsection (aa)'' and inserting 
``subsection (bb)''.
    (C) Section 1915(b) of such Act (42 U.S.C. 1396n(b)), as amended by 
section 702(c)(2) of the Medicare, Medicaid, and SCHIP Benefits 
Improvement and Protection Act of 2000 (as so enacted into law), is 
amended by striking ``1902(aa)'' and inserting ``1902(bb)''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2001.