To amend titles XIX and XXI of the Social Security Act to permit States to cover low-income youth up to age 23.

SECTION 1. SHORT TITLE.

    This Act may be cited as ``Health Care for Young Adults Act of 
2005''.

SEC. 2. PROVIDING STATE OPTION FOR SCHIP AND MEDICAID COVERAGE OF YOUNG 
              ADULTS UP TO AGE 23.

    (a) In General.--
            (1) Medicaid.--(A) Section 1902(l)(1)(D) of the Social 
        Security Act (42 U.S.C. 1396a(l)(1)(D)) is amended by inserting 
        ``(or, at the option of the State, who have not attained 20, 
        21, or 22 years of age, as the State may elect)'' after ``have 
        not attained 19 years of age''.
            (B) Clause (i) of section 1905(a) of the Social Security 
        Act (42 U.S.C. 1396d(a)) is amended by striking ``under the age 
        of 21, or, at the option of the State, under the age of 20, 19, 
        or 18 as the State may choose'' and inserting ``under the age 
        of 23, or, at the option of the State, under the age of 22, 21, 
        20, 19, or 18 as the State may elect''.
            (2) SCHIP.--Section 2110(c)(1) of such Act (42 U.S.C. 
        1397jj(c)(1)) is amended by inserting after ``19 years of age'' 
        the following: ``(or, at the option of the State and subject to 
        the availability of additional allotments under section 
        2104(d), 20, 21, 22, or 23 years of age)''.
    (b) Additional SCHIP Allotments for Providing Coverage of Optional 
Young Adults.--
            (1) In general.--Section 2104 of such Act (42 U.S.C. 
        1397dd) is amended by inserting after subsection (c) the 
        following:
    ``(d) Additional Allotments for the Provision of Coverage to 
Optional Young Adults.--
            ``(1) Appropriation; total allotment.--For the purpose of 
        providing additional allotments to States under this title, 
        there is appropriated, out of any money in the Treasury not 
        otherwise appropriated, for each of fiscal years 2006 through 
        2009, $500,000,000.
            ``(2) State and territorial allotments.--In addition to the 
        allotments provided under subsections (b) and (c), subject to 
        paragraph (3), of the amount available for the additional 
        allotments under paragraph (1) for a fiscal year, the Secretary 
        shall allot to each State with a State child health plan 
        approved under this title--
                    ``(A) in the case of such a State other than a 
                commonwealth or territory described in subparagraph 
                (B), the same proportion as the proportion of the 
                State's allotment under subsection (b) (determined 
                without regard to subsection (f)) to the total amount 
                of the allotments under subsection (b) for such States 
                eligible for an allotment under this paragraph for such 
                fiscal year; and
                    ``(B) in the case of a commonwealth or territory 
                described in subsection (c)(3), the same proportion as 
                the proportion of the commonwealth's or territory's 
                allotment under subsection (c) (determined without 
                regard to subsection (f)) to the total amount of the 
                allotments under subsection (c) for commonwealths and 
                territories eligible for an allotment under this 
                paragraph for such fiscal year.
            ``(3) Use of additional allotment.--Additional allotments 
        provided under this subsection are not available for amounts 
        expended before October 1, 2005. Such amounts are available for 
        amounts expended on or after such date only for--
                    ``(A) expenditures described in section 
                1905(u)(4)(A); and
                    ``(B) child health assistance for individuals who 
                are targeted low-income children and over 18 years of 
                age and who are low-income children only because of an 
                election by the State under section 2110(c)(1).''.
            (2) Conforming amendments.--Section 2104 of such Act (42 
        U.S.C. 1397dd) is amended--
                    (A) in subsection (a), in the matter preceding 
                paragraph (1), by inserting ``subject to subsection 
                (d),'' after ``under this section,'';
                    (B) in subsection (b)(1), by inserting ``and 
                subsection (d)'' after ``Subject to paragraph (4)''; 
                and
                    (C) in subsection (c)(1), by inserting ``subject to 
                subsection (d),'' after ``for a fiscal year,''.
    (c) Modification of Medicaid Caps for Territories.--Section 1108 of 
such Act (42 U.S.C. 1308) is amended--
            (1) in subsection (f), by striking ``subsection (g)'' and 
        inserting ``subsections (g) and (h)''; and
            (2) by adding at the end the following new subsection:
    ``(h) The Secretary shall provide for such increase in the 
limitations under subsections (f) and (g) with respect to each of the 
territories as may be necessary for each such territory to provide for 
an expansion of medicaid coverage to young adults described in section 
1902(l)(1)(D).''.
    (d) Effective Date.--The amendments made by this section apply to 
items and services furnished on or after October 1, 2005, without 
regard to whether regulations implementing such amendments have been 
promulgated.

SEC. 3. GRANTS TO IMPLEMENT MEDICAID AND SCHIP EXPANSIONS.

    (a) In General.--The Secretary of Health and Human Services shall 
provide for grants to States (as defined for purposes of titles XIX and 
XXI of the Social Security Act) in order to enable such States to 
implement expansions of eligibility for children and young adults their 
State medicaid plans under title XIX of the Social Security Act and 
State child health plans under title XXI of such Act. Such grants shall 
be available for planning, implementation, and outreach with respect to 
such expanded eligibility populations.
    (b) Terms and Conditions.--Grants under this section shall be made 
available under such terms and conditions, including the approval of a 
grant application, as the Secretary shall specify.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to provide for grants under 
this section.

Summary: Health Care for Young Adults Act of 2005 - Amends titles XIX (Medicaid) and XXI to permit states to provide Medicaid and SCHIP coverage of low-income youth up to age 23. Provides for additional SCHIP allotments for the provision of coverage to optional young adults. Amends SSA title XI to modify Medicaid caps for territories. Directs the Secretary of Health and Human Services to provide for grants to states in order to enable them to implement expansions of eligibility for children and young adults in their state Medicaid and state SCHIP plans.