SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Medicare, Medicaid, and MCH Smoking 
Cessation Promotion Act of 2001''.

SEC. 2. COVERAGE OF COUNSELING FOR CESSATION OF TOBACCO USE UNDER THE 
              MEDICARE PROGRAM.

    (a) Coverage.--Section 1861(s)(2) of the Social Security Act (42 
U.S.C. 1395x(s)(2)), as amended by sections 102(a) and 105(a) 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--
            (1) in subparagraph (U), by striking ``and'' at the end;
            (2) in subparagraph (V), by adding ``and'' at the end; and
            (3) by adding at the end the following new subparagraph:
            ``(W) counseling for cessation of tobacco use (as defined 
        in section 1861(vv));''.
    (b) Counseling Described.--Section 1861 of such Act (42 U.S.C. 
1395x), as amended by section 102(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 further amended by 
adding at the end the following new subsection:

               ``Counseling for Cessation of Tobacco Use

    ``(vv)(1) Except as provided in paragraph (2), the term `counseling 
for cessation of tobacco use' may include diagnostic, therapy, and 
counseling services for cessation of tobacco use but only for 
individuals who have a history of tobacco use and only if the services 
are furnished--
            ``(A) by or under the supervision of a physician; or
            ``(B) by any other health care professional who (i) is 
        legally authorized to furnish such services under State law (or 
        the State regulatory mechanism provided by State law) of the 
        State in which the services are furnished and (ii) is 
        authorized to receive payment for other services under this 
        title or is designated by the Secretary for this purpose.
    ``(2) Such term does not include counseling services that have not 
been shown (or recognized by the Secretary) to be effective.''.
    (c) Elimination of Cost-Sharing.--
            (1) Elimination of coinsurance.--Section 1833(a)(1) of such 
        Act (42 U.S.C. 1395l(a)(1)), as amended by sections 105(c) and 
        201(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--
                    (A) by striking ``and'' before ``(U)''; and
                    (B) by inserting before the semicolon at the end 
                the following: ``, and (V) with respect to counseling 
                for cessation of tobacco use (as defined in section 
                1861(vv), the amount paid shall be 100 percent of the 
                lesser of the actual charge for the services or the 
                amount determined by a fee schedule established by the 
                Secretary for purposes of this clause''.
            (2) Elimination of deductible.--The first sentence of 
        section 1833(b)(1) of such Act (42 U.S.C. 1395l(b)(1)) is 
        amended--
                    (A) by striking ``and'' before ``(6)''; and
                    (B) by inserting before the period the following: 
                ``, and (7) such deductible shall not apply with 
                respect to counseling for cessation of tobacco use (as 
                defined in section 1861(vv)''.
    (d) Effective Date.--The amendments made by this section shall 
apply to services furnished on or after January 1, 2002.

SEC. 3. MEDICAID PROGRAM.

    (a) Dropping Exception From Medicaid Prescription Drug Coverage for 
Smoking Cessation Medications.--Section 1927(d)(2) of the Social 
Security Act (42 U.S.C. 1396r-8(d)(2)) is amended--
            (1) by striking subparagraph (E); and
            (2) in subparagraph (F), by inserting before the period at 
        the end the following: ``except agents approved by the Food and 
        Drug Administration for purposes of promoting, and when used to 
        promote, smoking cessation''.
    (b) Requiring Coverage of Smoking Cessation Counseling in Services 
for Pregnant Women.--Section 1902(a)(10)(C)(ii)(II) of such Act (42 
U.S.C. 1396a(a)(10)(C)(ii)(II)) is amended by inserting ``and 
counseling for cessation of tobacco use (as defined in section 
1861(vv))'' after ``prenatal care and delivery services''.
    (c) Removal of Cost-Sharing for Smoking Cessation Counseling 
Services for Pregnant Women.--Section 1916 of such Act (42 U.S.C. 
1396o) is amended, in each of subsections (a)(2)(B) and (b)(2)(B), by 
inserting ``counseling for cessation of tobacco use (as defined in 
section 1861(vv)) furnished to pregnant women and other'' after 
``(B)''.
    (d) Effective Date.--The amendments made by this section shall 
apply to services furnished on or after January 1, 2002.

SEC. 4. MATERNAL AND CHILD HEALTH PROGRAM.

    (a) Quality Maternal and Child Health Services Includes Smoking 
Cessation Counseling and Medications.--Section 501 of the Social 
Security Act (42 U.S.C. 701) is amended by adding at the end the 
following new subsection:
    ``(c) For purposes of this title, counseling for cessation of 
tobacco use (as defined in section 1861(vv)), medications used to 
promote smoking cessation, and the inclusion of anti-tobacco messages 
in health promotion counseling shall be considered to be part of 
quality maternal and child health services.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date of the enactment of this Act.
Medicare, Medicaid, and MCH Smoking Cessation Promotion Act of 2001 - Amends titles V (Maternal and Child Health Services), XVIII (Medicare), and XIX (Medicaid) of the Social Security Act to provide for coverage of counseling for cessation of tobacco use under the Maternal and Child Health Services, Medicare, and Medicaid programs.
To amend titles V, XVIII, and XIX of the Social Security Act to promote smoking cessation under the Medicare Program, the Medicaid Program, and the maternal and child health program.