To amend title XIX of the Social Security Act to provide medical assistance to uninsured newborns under the Medicaid program.

Summary: Start Healthy Act of 2012 - Amends title XIX (Medicaid) of the Social Security Act to provide: (1) mandatory coverage of qualified (uninsured) newborns, and (2) 100% federal medical assistance percentage (FMAP) for temporary coverage of such newborns.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Start Healthy Act of 2012''.

SEC. 2. MEDICAID ASSISTANCE FOR UNINSURED NEWBORNS.

    (a) Mandatory Coverage of Certain Newborns.--Section 
1902(a)(10)(A)(i) of the Social Security Act (42 U.S.C. 
1396a(a)(10)(A)(i)) is amended--
            (1) by striking ``or'' at the end of subclause (VIII);
            (2) by adding ``or'' at the end of subclause (IX); and
            (3) by adding at the end the following:
                                    ``(X) who are qualified newborns 
                                (as defined in subsection 
                                (e)(16)(A));''.
    (b) Deemed Eligibility for Newborns.--Section 1902(e) of such Act 
(42 U.S.C. 1396a(e)) is amended by adding at the end the following:
            ``(16) Deemed eligibility for qualified newborns.--
                    ``(A) Qualified newborn defined.--For purposes of 
                this section, the term `qualified newborn' means a 
                child who--
                            ``(i) is born in the United States;
                            ``(ii) is under 1 year of age;
                            ``(iii) is not a child who is deemed 
                        eligible under paragraph (4); and
                            ``(iv) for periods--
                                    ``(I) before January 1, 2014, is 
                                not eligible for creditable coverage 
                                under section 2701(c) of the Public 
                                Health Service Act (42 U.S.C. 
                                300gg(c)), as in effect before January 
                                1, 2014, but applied without regard to 
                                subparagraphs (D) and (F) of paragraph 
                                (1) of such section; or
                                    ``(II) on or after such date, is 
                                not eligible for minimum essential 
                                coverage, as defined in section 
                                5000A(f)(1) of the Internal Revenue 
                                Code of 1986, but applied without 
                                regard to subparagraph (A)(ii) of such 
                                section.
                    ``(B) Deemed eligibility.--Subject to subparagraph 
                (C), a child that a State reasonably believes is a 
                qualified newborn (and thus eligible for medical 
                assistance under subsection (a)(10)(A)(i)(X)) on the 
                date of such child's birth shall be deemed to have 
                applied for medical assistance and to have been found 
                eligible for such assistance under such plan on the 
                date of such birth and to remain eligible for such 
                assistance until such child is one year of age, unless 
                a State determines that a child is not eligible for 
                such medical assistance through a redetermination under 
                subparagraph (D).
                    ``(C) Exception for other coverage.--
                            ``(i) In general.--If, during the period of 
                        eligibility under subparagraph (A), the State 
                        determines that the child is enrolled in a type 
                        of coverage described in subparagraph (A)(iv), 
                        the State may terminate medical assistance for 
                        such child under subsection (a)(10)(A)(i)(X).
                            ``(ii) Limitation.--A State that determines 
                        that a child is eligible for such coverage, but 
                        not enrolled in such coverage, may not 
                        terminate such medical assistance for such 
                        child until such child is enrolled in such 
                        coverage.
                    ``(D) Redeterminations of eligibility.--
                            ``(i) In general.--Subject to clause (ii) 
                        and subparagraph (C)(ii), the State shall 
                        redetermine a child's eligibility for medical 
                        assistance under subsection (a)(10)(A)(i)(X) 
                        not later than 180 days after the date of the 
                        child's birth.
                            ``(ii) Limitation.--If an application is 
                        required for a redetermination under clause 
                        (i), and such application is not received by 
                        the State, and the State reasonably believes 
                        that the child for which such application was 
                        required continues to be a qualified newborn, 
                        the State may not discontinue such child's 
                        eligibility for medical assistance under 
                        subsection (a)(10)(A)(i)(X) on the basis of 
                        such missing application.
                            ``(iii) Reduced fmap for failure to do 
                        timely determination.--The increased Federal 
                        medical assistance percentage provided under 
                        the third sentence of section 1905(b) with 
                        respect to individuals eligible for medical 
                        assistance under section 1902(a)(10)(A)(i)(X) 
                        shall not apply with respect to a child, 
                        beginning 180 days after the date of the 
                        child's birth, for whom a determination is not 
                        made on a timely basis under clause (i), unless 
                        the limitation under clause (ii) applies to 
                        such child.''.
    (c) 100 Percent Matching Rate for Temporary Coverage of Certain 
Newborns.--
            (1) In general.--The third sentence of section 1905(b) of 
        such Act (42 U.S.C. 1396d(b)) is amended by inserting before 
        the period at the end the following: ``and, subject to section 
        1902(e)(16)(E)(iii), for medical assistance for individuals in 
        one of the 50 States or the District of Columbia eligible for 
        such assistance under section 1902(a)(10)(A)(i)(X)''.
            (2) Application to territories.--Section 1108(g)(4) of such 
        Act (42 U.S.C. 1308(g)(4)) is amended by adding at the end the 
        following: ``Payment for medical assistance for an individual 
        eligible for assistance under section 1902(a)(10)(A)(i)(X) 
        shall not be taken into account in applying subsection (f) (as 
        increased in accordance with paragraphs (1), (2), (3), and (4) 
        of this subsection).''
    (d) Conforming Amendment.--Section 1903(f)(4) of such Act (42 
U.S.C. 1396b(f)(4)) is amended by inserting ``1902(a)(10)(A)(i)(X),'' 
after ``1902(a)(10)(A)(i)(VIII),''.
    (e) Technical Amendments.--Section 1902(e) of such Act (42 U.S.C. 
1396a(e)) is amended by redesignating the paragraph (14) relating to 
exclusion of compensation for participation in a clinical trial for 
testing of treatments for a rare disease or condition, as added by 
section 3 of the Improving Access to Clinical Trials Act of 2009, as 
paragraph (15). Such redesignation shall not be construed to affect the 
application of section (3)(e) of the Improving Access to Clinical 
Trials Act of 2009 to such paragraph.
    (f) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to individuals born on or after the day that is 6 months 
        after the date of the enactment of this Act.
            (2) Delay permitted for state plan amendment.--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 requirements imposed by the amendments made by 
        this section, 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 these additional requirements 
        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 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.