To amend title XIX of the Social Security Act to protect the eligibility of incarcerated youth for medical assistance.

Summary: At-Risk Youth Medicaid Protection Act - Amends title XIX (Medicaid) of the Social Security Act to prohibit a state from terminating (but requires it to suspend) eligibility for medical assistance for an eligible juvenile during the time he or she is an inmate of a public institution.

Requires the state to establish a process to ensure that: (1) it does not claim federal financial participation for items and services excluded from covered medical assistance, and (2) the eligible juvenile receives items and services which are covered and for which federal financial participation would have otherwise been permitted but for the juvenile's status as an inmate.

Requires the state to: (1) restore automatically full eligibility for such medical assistance to an eligible juvenile upon release from the institution; and (2) take all necessary steps to ensure that the juvenile can begin receiving medical assistance under Medicaid immediately upon such release, unless he or she no longer meets state or federal eligibility requirements.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``At-Risk Youth Medicaid Protection 
Act''.

SEC. 2. AT-RISK YOUTH MEDICAID PROTECTION.

    (a) In General.--Section 1902(a) of the Social Security Act (42 
U.S.C. 1396a) is amended--
            (1) by striking ``and'' at the end of paragraph (82)(C);
            (2) by striking the period at the end of paragraph (83) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (83) the following new 
        paragraph:
            ``(84)(A) provide that in the case of an eligible 
        juvenile--
                            ``(i) the State shall not terminate (but 
                        shall suspend) eligibility for medical 
                        assistance for such juvenile during the period 
                        that such individual is an inmate of a public 
                        institution, but shall establish a process to 
                        ensure that--
                                    ``(I) the State does not claim 
                                Federal financial participation for 
                                items and services that are excluded 
                                from the definition of medical 
                                assistance under subdivision (A) 
                                (following paragraph (29)) in section 
                                1905(a); and
                                    ``(II) ensures that the eligible 
                                juvenile receives (other than under 
                                this title) items and services which 
                                are included in the definition of 
                                medical assistance and for which 
                                Federal financial participation would 
                                have otherwise been permitted but for 
                                the status of the juvenile as such an 
                                inmate; and
                            ``(ii) the State shall automatically 
                        restore full eligibility for such medical 
                        assistance to such eligible juvenile upon 
                        release from such institution and shall take 
                        all necessary steps to ensure that such 
                        juvenile can begin receiving medical assistance 
                        under this title immediately upon release from 
                        such institution, unless (and until such date) 
                        there is a determination that the juvenile no 
                        longer meets the State or Federal eligibility 
                        requirements for such medical assistance.
                    ``(B) For purposes of this paragraph, the term 
                `eligible juvenile' means an individual who--
                            ``(i) is 21 years of age or younger;
                            ``(ii) was enrolled for medical assistance 
                        under the State plan immediately before 
                        becoming an inmate of a public institution;
                            ``(iii) on the expected date of release of 
                        such individual from such institution--
                                    ``(I) will be 21 years of age or 
                                younger; and
                                    ``(II) notwithstanding subdivision 
                                (A) (following paragraph (29)), in 
                                section 1905(a), will be eligible for 
                                medical assistance under the State 
                                plan.''.
    (b) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by subsection (a) shall take effect 6 months 
        after the date of the enactment of this Act and shall apply to 
        eligibility and enrollment on or after such date.
            (2) Rule for changes requiring state legislation.--In the 
        case of a State plan for medical assistance under title XIX of 
        the Social Security Act which the Secretary of Health and Human 
        Services determines requires State legislation (other than 
        legislation appropriating funds) in order for the plan to meet 
        the additional requirement imposed by the amendments made by 
        this subsection, the State plan shall not be regarded as 
        failing to comply with the requirements of such title solely on 
        the basis of its failure to meet this additional requirement 
        before the first day of the first calendar quarter beginning 
        after the close of the first regular session of the State 
        legislature that begins after the date of the enactment of this 
        Act. For purposes of the previous sentence, in the case of a 
        State that has a 2-year legislative session, each year of such 
        session shall be deemed to be a separate regular session of the 
        State legislature.