To amend titles XIX and XXI of the Social Security Act to provide for the reinstatement of enrollment for medical assistance and child health assistance of certain youth who were enrolled for such assistance immediately before becoming inmates of public institutions upon the release of such youth from such institutions.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Reinstatement of Enrollment for 
Medicaid Eligibility of Disadvantaged Youth (REMEDY) Act''.

SEC. 2. REINSTATEMENT OF ENROLLMENT FOR MEDICAID AND SCHIP BENEFITS FOR 
              CERTAIN YOUTH UPON RELEASE FROM PUBLIC INSTITUTIONS.

    (a) Application to Medicaid.--Section 1902(a) of the Social 
Security Act (42 U.S.C. 1396b) is amended--
            (1) by striking ``and'' at the end of paragraph (69);
            (2) by striking the period at the end of paragraph (70) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (70) the following new 
        paragraph:
            ``(71) provide that in the case of any individual who is a 
        youth, as determined under the State plan for purposes of 
        eligibility for medical assistance under such plan, as of the 
        date of becoming an inmate of a public institution and who is a 
        youth (as so determined) at the time of release from such 
        institution, if the individual was enrolled for medical 
        assistance under the State plan immediately before becoming 
        such an inmate the State must suspend, rather than terminate, 
        such enrollment for such individual during the period in which 
        such individual is such an inmate in a manner such that--
                    ``(A) the enrollment of such individual shall be 
                reinstated upon release from such institution unless 
                and until there is a determination that the individual 
                is no longer eligible to be so enrolled; and
                    ``(B) any period of continuous eligibility in 
                effect on the date the individual became such an inmate 
                shall be reinstated as of the date of the release and 
                the duration of such period shall be determined without 
                regard to the period in which the individual was such 
                an inmate.''.
    (b) Application to SCHIP.--Section 2102(b)(1) of the Social 
Security Act (42 U.S.C. 1397bb(b)(1)) is amended by adding at the end 
the following new subparagraph:
                    ``(C) Reinstatement of enrollment for certain youth 
                upon release from public institutions.--A State child 
                health plan shall provide that in the case of any child 
                who becomes an inmate of a public institution and who 
                is still a child at the time of release from such 
                institution, if the child was enrolled for child health 
                assistance under the State child health plan 
                immediately before becoming such an inmate the State 
                must suspend, rather than terminate, such enrollment 
                for such child during the period in which such child is 
                such an inmate in a manner such that--
                            ``(i) the enrollment of such child shall be 
                        reinstated upon release from such institution 
                        unless and until there is a determination that 
                        the child is no longer eligible to be so 
                        enrolled; and
                            ``(ii) any period of continuous eligibility 
                        in effect on the date the child became such an 
                        inmate shall be reinstated as of the date of 
                        the release and the duration of such period 
                        shall be determined without regard to the 
                        period in which the child was such an 
                        inmate.''.
    (c) Effective Date.--
            (1) In general.--Subject to paragraph (2), the amendments 
        made by this section shall apply to individuals who become 
        inmates of a public institution on or after January 1, 2009.
            (2) Exception if state legislation required.--In the case 
        of a State plan for medical assistance under title XIX of the 
        Social Security Act, or a State child health plan for child 
        health assistance under title XXI of such 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 requirement 
        imposed by the amendment made by subsection (a)(3) or (b), 
        respectively, the State plan or State child health plan, 
        respectively, shall not be regarded as failing to comply with 
        the requirements of such title solely on the basis of its 
        failure to meet such respective additional requirement 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.

Summary: Reinstatement of Enrollment for Medicaid Eligibility of Disadvantaged Youth (REMEDY) Act - Amends titles XIX (Medicaid) and XXI (SCHIP) of the Social Security Act to require a state plan to provide for the reinstatement to enrollment for medical assistance and child health assistance upon release from a public institution of an individual youth who was enrolled for such assistance immediately before becoming an inmate of such institution.