To amend title XXI of the Social Security Act to provide for coverage of pregnancy-related assistance for targeted low-income pregnant women.

Summary: Mothers and Newborns Health Insurance Act of 2001 - Amends title XXI (State Children's Health Insurance) (SCHIP) of the Social Security Act (SSA) to give States, subject to specified guidelines, the authority to provide for: (1) optional coverage of pregnancy-related assistance for targeted low-income, uninsured pregnant women under the State's SCHIP plan; and (2) automatic eligibility and enrollment for child health assistance under such plan for children born to targeted low-income pregnant women receiving such assistance when the child is born until it attains one year of age, so long as the child is a member of the woman's household.Amends SSA title XIX (Medicaid) with respect to the transitional increased Federal matching rate for increased administrative costs related to Medicaid-eligibility determinations of individuals receiving aid or assistance under SSA title IV part A (Temporary Assistance for Needy Families) (TANF).

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Mothers and Newborns Health 
Insurance Act of 2001''.

SEC. 2. OPTIONAL COVERAGE OF LOW-INCOME, UNINSURED PREGNANT WOMEN UNDER 
              A STATE CHILD HEALTH PLAN.

    (a) In General.--Title XXI of the Social Security Act (42 U.S.C. 
1397aa et seq.) is amended by adding at the end the following:

``SEC. 2111. OPTIONAL COVERAGE OF LOW-INCOME, UNINSURED PREGNANT WOMEN.

    ``(a) Optional Coverage.--Notwithstanding any other provision of 
this title, a State child health plan may provide for coverage of 
pregnancy-related assistance for targeted low-income pregnant women in 
accordance with this section.
    ``(b) Definitions.--For purposes of this section:
            ``(1) Pregnancy-related assistance.--The term `pregnancy-
        related assistance' has the meaning given the term `child 
        health assistance' in section 2110(a) as if any reference to 
        targeted low-income children were a reference to targeted low-
        income pregnant women, except that the assistance shall be 
        limited to pregnancy-related services (as defined in regulation 
        for purposes of title XIX).
            ``(2) Targeted low-income pregnant woman.--The term 
        `targeted low-income pregnant woman' has the meaning given the 
        term `targeted low-income child' in section 2110(b) as if any 
        reference to a child were deemed a reference to a woman during 
        pregnancy and through the end of the month in which the 60-day 
        period (beginning on the last day of her pregnancy) ends.
    ``(c) References to Terms and Special Rules.--In the case of, and 
with respect to, a State providing for coverage of pregnancy-related 
assistance to targeted low-income pregnant women under subsection (a), 
the following special rules apply:
            ``(1) Any reference in this title (other than subsection 
        (b)) to a targeted low-income child is deemed to include a 
        reference to a targeted low-income pregnant woman.
            ``(2) Any such reference to child health assistance with 
        respect to such women is deemed a reference to pregnancy-
        related assistance.
            ``(3) Any such reference to a child is deemed a reference 
        to a woman during pregnancy and the period described in 
        subsection (b)(2).
            ``(4) The reference in section 2107(e)(1)(D) to section 
        1920A (relating to presumptive eligibility for children) is 
        deemed a reference to section 1920 (relating to presumptive 
        eligibility for pregnant women).
            ``(5) The medicaid applicable income level is deemed a 
        reference to the income level established under section 
        1902(l)(2)(A).
            ``(6) Subsection (a) of section 2103 (relating to required 
        scope of health insurance coverage) shall not apply insofar as 
        a State limits coverage to services described in subsection 
        (b)(1) and the reference to such section in section 2105(a)(1) 
        is deemed not to require, in such case, compliance with the 
        requirements of section 2103(a).
            ``(7) There shall be no exclusion of benefits for services 
        described in subsection (b)(1) based on any pre-existing 
        condition, and no waiting period (including a waiting period to 
        carry out section 2102(b)(3)(C)) shall apply.
    ``(d) No Impact on Allotments.--Nothing in this section shall be 
construed as affecting the amount of any initial allotment provided to 
a State under section 2104(b).
    ``(e) Application of Funding Restrictions.--The coverage under this 
section (and the funding of such coverage) is subject to the 
restrictions of section 2105(c).''.
    (b) Application of Qualified Entities to Presumptive Eligibility 
for Pregnant Women Under Medicaid.--Section 1920(b) of the Social 
Security Act (42 U.S.C. 1396r-1(b)) is amended by adding at the end 
after and below paragraph (2) the following flush sentence:
``The term `qualified provider' includes a qualified entity as defined 
in section 1920A(b)(3).''.
    (c) Conforming Amendments.--Section 2102(b)(1)(B) of the Social 
Security Act (42 U.S.C. 1397bb(b)(1)(B)) is amended--
            (1) by striking ``and'' at the end of clause (i);
            (2) by striking the period at the end of clause (ii) and 
        inserting ``, and''; and
            (3) by adding at the end the following:
                            ``(iii) may not apply a waiting period 
                        (including a waiting period to carry out 
                        paragraph (3)(C)) in the case of a targeted 
                        low-income child who is pregnant, if the State 
                        provides for coverage of pregnancy-related 
                        assistance for targeted low-income pregnant 
                        women in accordance with section 2111.''.
    (d) Effective Date.--The amendments made by this section take 
effect on the date of enactment of this Act and apply to allotments 
under title XXI of the Social Security Act (42 U.S.C. 1397aa et seq.) 
for all fiscal years.

SEC. 3. AUTOMATIC ENROLLMENT FOR CHILDREN BORN TO WOMEN RECEIVING 
              PREGNANCY-RELATED ASSISTANCE.

    (a) In General.--Section 2111 of the Social Security Act, as added 
by section 2, is amended by adding at the end the following:
    ``(f) Automatic Enrollment for Children Born to Women Receiving 
Pregnancy-Related Assistance.--Notwithstanding any other provision of 
this title or title XIX, if a child is born to a targeted low-income 
pregnant woman who was receiving pregnancy-related assistance under 
this section on the date of the child's birth, the child shall be 
deemed to have applied for child health assistance under the State 
child health plan on the date of such birth, to have been found 
eligible for such assistance under such plan (or, in the case of a 
State that provides such assistance through the provision of medical 
assistance under a plan under title XIX to have applied for medical 
assistance under such title and to have been found eligible for such 
assistance under such title on the date of such birth) and to remain 
eligible for such assistance until the child attains 1 year of age, so 
long as the child is a member of the woman's household.''.
    (b) Effective Date.--The amendment made by subsection (a) takes 
effect on the date of enactment of this Act and applies to allotments 
under title XXI of the Social Security Act (42 U.S.C. 1397aa et seq.) 
for all fiscal years.

SEC. 4. EXPANDED AVAILABILITY OF FUNDING FOR ADMINISTRATIVE COSTS 
              RELATED TO OUTREACH AND ELIGIBILITY DETERMINATIONS.

    Section 1931(h) of the Social Security Act (42 U.S.C. 1396u-1(h)) 
is amended--
            (1) by striking the subsection heading and inserting 
        ``Increased Federal Matching Rate for Administrative Costs 
        Related to Outreach and Eligibility Determinations''; and
            (2) in paragraph (2), by striking ``eligibility 
        determinations'' and all that follows and inserting 
        ``determinations of the eligibility of children and pregnant 
        women for benefits under the State plan under this title or 
        title XXI, outreach to children and pregnant women likely to be 
        eligible for such benefits, and such other outreach- and 
        eligibility-related activities as the Secretary may approve.''.