SECTION 1. SHORT TITLE.

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

SEC. 2. MEDICARE COVERAGE OF COUNSELING FOR CESSATION OF TOBACCO USE.

    (a) Coverage.--Section 1861(s)(2) of the Social Security Act (42 
U.S.C. 1395x(s)(2)), as amended by section 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 inserting ``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 subsection (ww));''.
    (b) Services Described.--Section 1861 of the Social Security Act 
(42 U.S.C. 1395x), as amended by section 105(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 
by adding at the end the following new subsection:

               ``Counseling for Cessation of Tobacco Use

    ``(ww) The term `counseling for cessation of tobacco use' means the 
following:
            ``(1)(A) Counseling for cessation of tobacco use for 
        individuals who have a history of tobacco use.
            ``(B) For purposes of subparagraph (A), the term 
        `counseling for cessation of tobacco use' means diagnostic, 
        therapy, and counseling services for cessation of tobacco use 
        which are furnished--
                    ``(i) by or under the supervision of a physician; 
                or
                    ``(ii) by any other health care professional who 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,
        as would otherwise be covered if furnished by a physician or as 
        an incident to a physician's professional service.
            ``(C) The term `counseling for cessation of tobacco use' 
        does not include coverage for drugs or biologicals that are not 
        otherwise covered under this title.''.
    (c) Payment and Elimination of Cost-Sharing for Counseling for 
Cessation of Tobacco Use.--
            (1) Payment and elimination of coinsurance.--Section 
        1833(a)(1) of the Social Security Act (42 U.S.C. 1395l(a)(1)), 
        as amended by section 223(c) 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(ww)), the amount paid shall be 100 percent of the 
                lesser of the actual charge for the service or the 
                amount determined by a fee schedule established by the 
                Secretary for each service''.
            (2) Elimination of coinsurance in outpatient hospital 
        settings.--The third sentence of section 1866(a)(2)(A) of the 
        Social Security Act (42 U.S.C. 1395cc(a)(2)(A)) is amended by 
        inserting after ``1861(s)(10)(A)'' the following: ``, with 
        respect to counseling for cessation of tobacco use (as defined 
        in section 1861(ww)),''.
            (3) Elimination of deductible.--The first sentence of 
        section 1833(b) of the Social Security Act (42 U.S.C. 1395l(b)) 
        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(ww))''.
    (d) Effective Date.--The amendments made by this section shall 
apply to services furnished on or after the date that is 1 year after 
the date of enactment of this Act.

SEC. 3. PROMOTING CESSATION OF TOBACCO USE UNDER THE MEDICAID PROGRAM.

    (a) Dropping Exception From Medicaid Prescription Drug Coverage for 
Tobacco 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);
            (2) by redesignating subparagraphs (F) through (J) as 
        subparagraphs (E) through (I), respectively; and
            (3) in subparagraph (F) (as redesignated by paragraph (2)), 
        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, tobacco 
        cessation''.
    (b) Requiring Coverage of Tobacco Cessation Counseling Services for 
Pregnant Women.--Section 1902(e)(5) of the Social Security Act (42 
U.S.C. 1396a(e)(5)) is amended by adding at the end the following new 
sentence: ``Such medical assistance shall include counseling for 
cessation of tobacco use (as defined in section 1861(ww)).''.
    (c) Removal of Cost-Sharing for Tobacco Cessation Counseling 
Services for Pregnant Women.--Section 1916 of the Social Security Act 
(42 U.S.C. 1396o) is amended, in each of subsections (a)(2)(B) and 
(b)(2)(B), by inserting ``, and counseling for cessation of tobacco use 
(as defined in section 1861(ww))'' after ``complicate the pregnancy''.
    (d) Effective Date.--The amendments made by this section shall 
apply to services furnished on or after the date that is 1 year after 
the date of enactment of this Act.

SEC. 4. PROMOTING CESSATION OF TOBACCO USE UNDER THE MATERNAL AND CHILD 
              HEALTH SERVICES BLOCK GRANT PROGRAM.

    (a) Quality Maternal and Child Health Services Includes Tobacco 
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, the term `maternal and child 
health services' includes counseling for cessation of tobacco use (as 
defined in section 1861(ww)), any drug or biological used to promote 
tobacco cessation, and any health promotion counseling that includes an 
antitobacco use message.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date that is 1 year after the date of enactment of 
this Act.
Medicare, Medicaid, and MCH Tobacco 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.
A bill to amend titles V, XVIII, and XIX of the Social Security Act to promote tobacco cessation under the medicare program, the medicaid program, and maternal and child health services block grant program.