SECTION 1. SHORT TITLE.

    This Act may be cited as the ``At-Risk Youth Medicaid Protection 
Act of 2016''.

SEC. 2. AT-RISK YOUTH MEDICAID PROTECTION.

    (a) In General.--Section 1902 of the Social Security Act (42 U.S.C. 
1396a) is amended--
            (1) in subsection (a)--
                    (A) by striking ``and'' at the end of paragraph 
                (80);
                    (B) by striking the period at the end of paragraph 
                (81) and inserting ``; and''; and
                    (C) by inserting after paragraph (81) the following 
                new paragraph:
            ``(82) provide that--
                    ``(A) the State shall not terminate eligibility for 
                medical assistance under a State plan for an individual 
                who is an eligible juvenile (as defined in subsection 
                (ll)(2)) because the juvenile is an inmate of a public 
                institution (as defined in subsection (ll)(3)), but may 
                suspend coverage during the period the juvenile is such 
                an inmate;
                    ``(B) the State shall restore coverage for such 
                medical assistance to such an individual upon the 
                individual's release from any such public institution, 
                without requiring a new application from the 
                individual, unless (and until such date as) there is a 
                determination that the individual no longer meets the 
                eligibility requirements for such medical assistance; 
                and
                    ``(C) the State shall process any application for 
                medical assistance submitted by, or on behalf of, a 
                juvenile who is an inmate of a public institution 
                notwithstanding that the juvenile is such an inmate.''; 
                and
            (2) by adding at the end the following new subsection:
    ``(ll) Juvenile; Eligible Juvenile; Public Institution.--For 
purposes of subsection (a)(82) and this subsection:
            ``(1) Juvenile.--The term `juvenile' means an individual 
        who is--
                    ``(A) under 21 years of age; or
                    ``(B) is described in subsection (a)(10)(A)(i)(IX).
            ``(2) Eligible juvenile.--The term `eligible juvenile' 
        means a juvenile who is an inmate of a public institution and 
        was eligible for medical assistance under the State plan 
        immediately before becoming an inmate of such a public 
        institution or who becomes eligible for such medical assistance 
        while an inmate of a public institution.
            ``(3) Inmate of a public institution.--The term `inmate of 
        a public institution' has the meaning given such term for 
        purposes of applying the subdivision (A) following paragraph 
        (29) of section 1905(a), taking into account the exception in 
        such subdivision for a patient of a medical institution.''.
    (b) No Change in Exclusion From Medical Assistance for Inmates of 
Public Institutions.--Nothing in this section shall be construed as 
changing the exclusion from medical assistance under the subdivision 
(A) following paragraph (29) of section 1905(a) of the Social Security 
Act (42 U.S.C. 1396d(a)), including any applicable restrictions on a 
State submitting claims for Federal financial participation under title 
XIX of such Act for such assistance.
    (c) No Change in Continuity of Eligibility Before Adjudication or 
Sentencing.--Nothing in this section shall be construed to mandate, 
encourage, or suggest that a State suspend or terminate coverage for 
individuals before they have been adjudicated or sentenced.
    (d) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by subsection (a) shall apply to eligibility of 
        juveniles who become inmates of public institutions on or after 
        the date that is 1 year after the date of the enactment of this 
        Act.
            (2) Rule for changes requiring state legislation.--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 
        subsection (a), 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 the 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.
At-Risk Youth Medicaid Protection Act of 2016 This bill amends title XIX (Medicaid) of the Social Security Act to specify that a state&nbsp;Medicaid program&nbsp;may not terminate a juvenile's medical assistance eligibility because the juvenile is incarcerated.&nbsp;A state may suspend coverage while the juvenile is an inmate, but must restore coverage upon release without requiring a new application unless the individual no longer meets the eligibility requirements for medical assistance. A state&nbsp;must process an application submitted by, or on behalf of, an incarcerated juvenile, notwithstanding that the juvenile is an inmate. A "juvenile" is an individual who: (1) is under 21 years of age; or (2) has aged out of the state's&nbsp;foster care system, was enrolled in&nbsp;the state plan while in foster care, and is under 26 years of age.
At-Risk Youth Medicaid Protection Act of 2016