SECTION 1. TEMPORARY INCREASE OF MEDICAID FMAP.

    (a) Permitting Maintenance of Fiscal Year 2001 FMAP for Last 3 
Calendar Quarters of Fiscal Year 2002.--Notwithstanding any other 
provision of law, but subject to subsection (g), if the FMAP determined 
without regard to this section for a State for fiscal year 2002 is less 
than the FMAP as so determined for fiscal year 2001, the FMAP for the 
State for fiscal year 2001 shall be substituted for the State's FMAP 
for the second, third, and fourth calendar quarters of fiscal year 
2002, before the application of this section.
    (b) Permitting Maintenance of Fiscal Year 2002 FMAP for Fiscal Year 
2003.--Notwithstanding any other provision of law, but subject to 
subsection (g), if the FMAP determined without regard to this section 
for a State for fiscal year 2003 is less than the FMAP as so determined 
for fiscal year 2002, the FMAP for the State for fiscal year 2002 shall 
be substituted for the State's FMAP for each calendar quarter of fiscal 
year 2003, before the application of this section.
    (c) Permitting Maintenance of Fiscal Year 2003 FMAP for Fiscal Year 
2004.--Notwithstanding any other provision of law, but subject to 
subsection (g), if the FMAP determined without regard to this section 
for a State for fiscal year 2004 is less than the FMAP as so determined 
for fiscal year 2003, the FMAP for the State for fiscal year 2003 shall 
be substituted for the State's FMAP for each calendar quarter of fiscal 
year 2004, before the application of this section.
    (d) General 1.50 Percentage Points Increase Through Fiscal Year 
2004.--Notwithstanding any other provision of law, but subject to 
subsections (g) and (h), for each State for the second, third, and 
fourth calendar quarters of fiscal year 2002 and each calendar quarter 
of fiscal years 2003 and 2004, the FMAP (taking into account the 
application of subsections (a), (b), and (c)) shall be increased by 
1.50 percentage points.
    (e) Further Increase for States With High Unemployment Rates 
Through Fiscal Year 2004.--
            (1) In general.--Notwithstanding any other provision of 
        law, but subject to subsections (g) and (h), the FMAP for a 
        high unemployment State for the second, third, and fourth 
        calendar quarters of fiscal year 2002, or any calendar quarter 
        of fiscal year 2003 or 2004, (and any subsequent such calendar 
        quarters after the first such calendar quarter for which the 
        State is a high unemployment State regardless of whether the 
        State continues to be a high unemployment State for the 
        subsequent such calendar quarters) shall be increased (after 
        the application of subsections (a), (b), (c), and (d)) by 1.50 
        percentage points.
            (2) High unemployment state.--
                    (A) In general.--For purposes of this subsection, a 
                State is a high unemployment State for a calendar 
                quarter if, for any 3 consecutive months beginning on 
                or after June 2001 and ending with the second month 
                before the beginning of the calendar quarter, the State 
                has an average seasonally adjusted unemployment rate 
                that exceeds the average weighted unemployment rate 
                during such period. Such unemployment rates for such 
                months shall be determined based on publications of the 
                Bureau of Labor Statistics of the Department of Labor.
                    (B) Average weighted unemployment rate defined.--
                For purposes of subparagraph (A), the ``average 
                weighted unemployment rate'' for a period is--
                            (i) the sum of the seasonally adjusted 
                        number of unemployed civilians in each State 
                        and the District of Columbia for the period; 
                        divided by
                            (ii) the sum of the civilian labor force in 
                        each State and the District of Columbia for the 
                        period.
    (f) Increase in Cap on Medicaid Payments to Territories.--
Notwithstanding any other provision of law, with respect to the second, 
third, and fourth calendar quarters of fiscal year 2002, and each 
calendar quarter of fiscal years 2003 and 2004, the amounts otherwise 
determined for Puerto Rico, the Virgin Islands, Guam, the Northern 
Mariana Islands, and American Samoa under section 1108 of the Social 
Security Act (42 U.S.C. 1308) shall each be increased by an amount 
equal to 6 percentage points of such amounts.
    (g) Scope of Application.--The increases in the FMAP for a State 
under this section shall apply only for purposes of title XIX of the 
Social Security Act and shall not apply with respect to--
            (1) disproportionate share hospital payments described in 
        section 1923 of such Act (42 U.S.C. 1396r-4); or
            (2) payments under titles IV and XXI of such Act (42 U.S.C. 
        601 et seq. and 1397aa et seq.).
    (h) State Eligibility.--A State is eligible for an increase in its 
FMAP under subsection (d) or (e) or an increase in a cap amount under 
subsection (f) only if the eligibility under its State plan under title 
XIX of the Social Security Act (including any waiver under such title 
or under section 1115 of such Act (42 U.S.C. 1315)) is no more 
restrictive than the eligibility under such plan (or waiver) as in 
effect on October 1, 2001.
    (i) Definitions.--In this section:
            (1) FMAP.--The term ``FMAP'' means the Federal medical 
        assistance percentage, as defined in section 1905(b) of the 
        Social Security Act (42 U.S.C. 1396d(b)).
            (2) State.--The term ``State'' has the meaning given such 
        term for purposes of title XIX of the Social Security Act (42 
        U.S.C. 1396 et seq.).
Declares that, if the Federal medical assistance percentage (FMAP) under title XIX (Medicaid) of the Social Security Act (SSA) for a State for FY 2002 is less than the FMAP for FY 2001, the FY 2001 FMAP shall be substituted for the State's FMAP for the last three calendar quarters of FY 2002. Declares similarly that: (1) if a State's FY 2003 FMAP is less than the FY 2002 FMAP, the FY 2002 FMAP shall be substituted for each calendar quarter of FY 2003; and (2) if a State's FY 2004 FMAP is less than the FY 2003 FMAP, the FY 2003 FMAP shall be substituted for each calendar quarter of FY 2004.Requires each eligible State for each calendar quarter for the last three calendar quarters of FY 2002 and each calendar quarter for FY 2003 through FY 2004 to be increased by 1.5 percentage points. Mandates specified FMAP increases for States with high unemployment rates, and a specified Medicaid payment cap increase for territories. Prohibits application of the FMAP increases for a State under this Act with respect to: (1) disproportionate share hospital payments under Medicaid; and (2) payments under SSA titles IV and XXI (State Children's Health Insurance) (SCHIP).
A bill to temporarily increase the Federal medical assistance percentage for the medicaid program.