To amend title XIX of the Social Security Act to provide for application of an enhanced Federal matching rate for children under the Medicaid Program if certain conditions are met.

Summary: Strengthening Medicaid for America's Children Act of 2009 - Amends title XIX (Medicaid) of the Social Security Act to require an increased federal medical assistance percentage (FMAP) for children in certain states that implement at least three of nine specified policies regarding medical assistance to children.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Strengthening Medicaid for America's 
Children Act of 2009''.

SEC. 2. ENHANCED FMAP FOR CHILDREN UNDER MEDICAID.

    (a) In General.--Section 1905 of the Social Security Act (42 U.S.C. 
1396d) is amended--
            (1) in subsection (b), by inserting ``and subsection (y)'' 
        after ``section 1933(d),''; and
            (2) by adding at the end the following new subsection:
    ``(y) Conditions-Based Enhanced FMAP for Children.--
            ``(1) In general.--Subject to paragraph (4), in the case of 
        a State that meets the requirements of paragraph (2) with 
        respect to a quarter and that implements at least 3 of the 
        policies described in paragraph (3)(B) for the quarter under 
        the State plan under this title, the Federal medical assistance 
        percentage applicable with respect to expenditures made for 
        medical assistance for children shall be increased by the 
        percentage (specified in paragraph (3)(A)) of the number of 
        percentage points by which--
                    ``(A) the enhanced FMAP (as defined in section 
                2105(b)), exceeds
                    ``(B) the Federal medical assistance percentage 
                otherwise applicable.
            ``(2) Maintenance-of-effort requirements.--The requirements 
        of this paragraph with respect to a State for a quarter are 
        that the State must agree to the following two maintenance-of-
        effort requirements:
                    ``(A) An amount equivalent to the aggregate State 
                general revenue funds being applied as of July 1, 2008, 
                under this title for purposes of obtaining Federal 
                financial participation under this title for medical 
                assistance furnished to children must remain invested 
                in health care programs and services for children and 
                available to supplement (and not supplant) program 
                funding, with priority given to increasing 
                reimbursement rates for providers and coverage 
                expansion.
                    ``(B) To maintain eligibility, methods, standards, 
                procedures, and provider rates applicable to children 
                under this title at levels not less than the levels in 
                effect as of July 1, 2008.
            ``(3) Scaling of increase based on degree of implementation 
        of policies.--
                    ``(A) Percentage specified.--For purposes of 
                paragraph (1), in the case of a State that implements--
                            ``(i) at least 6 of the policies described 
                        in subparagraph (B) for a calendar quarter, the 
                        percentage under this subparagraph is 100 
                        percent;
                            ``(ii) 5 of such policies, the percentage 
                        under this paragraph is 75 percent; or
                            ``(iii) fewer than 4 (but no less than 3) 
                        of such policies, the percentage under this 
                        paragraph is 50 percent.
                    ``(B) Policies described.--The policies described 
                in this subparagraph are as follows (as more fully 
                specified by the Secretary):
                            ``(i) The State has implemented 12-month 
                        continuous coverage for children for medical 
                        assistance under this title.
                            ``(ii) Children leaving foster care on 
                        their 18th birthday may maintain eligibility 
                        for medical assistance under this title up to 
                        the age of 23 if they are attending college 
                        full- or part-time.
                            ``(iii) As a condition of eligibility for 
                        children under section 1902(l), the State does 
                        not apply an asset test or applies a simplified 
                        asset verification system.
                            ``(iv) The State does not require a face-
                        to-face interview as a condition of eligibility 
                        for children for medical assistance under this 
                        title.
                            ``(v) The State permits renewals of 
                        eligibility for children for medical assistance 
                        under this title to be effected 
                        administratively or through an ex parte 
                        process.
                            ``(vi) The State permits a joint 
                        application for medical assistance under this 
                        title and for child health assistance under 
                        title XXI with the same information 
                        verification process to obtain assistance under 
                        this title or title XXI.
                            ``(vii) The State has implemented under 
                        this title and title XXI presumptive 
                        eligibility for children described in section 
                        1920A.
                            ``(viii) The State has implemented the 
                        Express Lane eligibility option under section 
                        1902(e)(13).
                            ``(ix) The State provides for coordination 
                        of delivery of care for children for which 
                        medical assistance is available under this 
                        title through a medical home or similar model.
            ``(4) Limitation.--This subsection shall not apply for any 
        calendar quarter for a State for which the State may be 
        eligible for an increase in FMAP under section 5001 of division 
        B of the American Recovery and Reinvestment Act (Public Law 
        111-5).
            ``(5) Children defined.--In this subsection, the term 
        `children' means an individual who is under 21 years of age.''.