A bill to provide for a temporary increase of the Federal medical assistance percentage under the Medicaid program, and for other purposes.

SECTION 1. TEMPORARY INCREASE OF MEDICAID FMAP.

    (a) Permitting Maintenance of Fiscal Year 2007 FMAP for Last 2 
Calendar Quarters of Fiscal Year 2008.--Subject to subsection (e), if 
the FMAP determined without regard to this section for a State for 
fiscal year 2008 is less than the FMAP as so determined for fiscal year 
2007, the FMAP for the State for fiscal year 2007 shall be substituted 
for the State's FMAP for the third and fourth calendar quarters of 
fiscal year 2008, before the application of this section.
    (b) Permitting Maintenance of Fiscal Year 2008 FMAP for First 3 
Quarters of Fiscal Year 2009.--Subject to subsection (e), if the FMAP 
determined without regard to this section for a State for fiscal year 
2009 is less than the FMAP as so determined for fiscal year 2008, the 
FMAP for the State for fiscal year 2008 shall be substituted for the 
State's FMAP for the first, second, and third calendar quarters of 
fiscal year 2009, before the application of this section.
    (c) General 2.95 Percentage Points Increase for Last 2 Calendar 
Quarters of Fiscal Year 2008 and First 3 Calendar Quarters of Fiscal 
Year 2009.--Subject to subsections (e), (f), and (g), for each State 
for the third and fourth calendar quarters of fiscal year 2008 and for 
the first, second, and third calendar quarters of fiscal year 2009, the 
FMAP (taking into account the application of subsections (a) and (b)) 
shall be increased by 2.95 percentage points.
    (d) Increase in Cap on Medicaid Payments to Territories.--Subject 
to subsections (f) and (g), with respect to the third and fourth 
calendar quarters of fiscal year 2008 and the first, second, and third 
calendar quarters of fiscal year 2009, the amounts otherwise determined 
for Puerto Rico, the Virgin Islands, Guam, the Northern Mariana 
Islands, and American Samoa under subsections (f) and (g) of section 
1108 of the Social Security Act (42 U.S.C. 1308) shall each be 
increased by an amount equal to 5.90 percent of such amounts.
    (e) 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);
            (2) payments under title IV or XXI of such Act (42 U.S.C. 
        601 et seq. and 1397aa et seq.); or
            (3) any payments under XIX of such Act that are based on 
        the enhanced FMAP described in section 2105(b) of such Act (42 
        U.S.C. 1397ee(b)).
    (f) State Eligibility.--
            (1) In general.--Subject to paragraph (2), a State is 
        eligible for an increase in its FMAP under subsection (c) or an 
        increase in a cap amount under subsection (d) 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 January 1, 2008.
            (2) State reinstatement of eligibility permitted.--A State 
        that has restricted 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)) after January 1, 2008, is eligible for an increase in 
        its FMAP under subsection (c) or an increase in a cap amount 
        under subsection (d) in the first calendar quarter (and 
        subsequent calendar quarters) in which the State has reinstated 
        eligibility that is no more restrictive than the eligibility 
        under such plan (or waiver) as in effect on January 1, 2008.
            (3) Rule of construction.--Nothing in paragraph (1) or (2) 
        shall be construed as affecting a State's flexibility with 
        respect to benefits offered under the State medicaid program 
        under title XIX of the Social Security Act (42 U.S.C. 1396 et 
        seq.) (including any waiver under such title or under section 
        1115 of such Act (42 U.S.C. 1315)).
    (g) Requirement for Certain States.--In the case of a State that 
requires political subdivisions within the State to contribute toward 
the non-Federal share of expenditures under the State medicaid plan 
required under section 1902(a)(2) of the Social Security Act (42 U.S.C. 
1396a(a)(2)), the State shall not require that such political 
subdivisions pay a greater percentage of the non-Federal share of such 
expenditures for the third and fourth calendar quarters of fiscal year 
2008 and the first, second, and third calendar quarters of fiscal year 
2009, than the percentage that would have been required by the State 
under such plan on March 31, 2008, prior to application of this 
section.
    (h) 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.).
            (3) Repeal.--Effective as of October 1, 2009, this section 
        is repealed.

Summary: Provides that, if the federal medical assistance percentage (FMAP) determined under title XIX (Medicaid) of the Social Security Act without regard to this Act for a state for FY2008 is less than the FMAP as so determined for FY2007, the FY2007 FMAP shall be substituted for the FMAP for the third and fourth calendar quarters of FY2008, before the application of this Act. Provides that, if the FMAP determined without regard to this Act for a state for FY2009 is less than the FMAP as so determined for FY2008, the FY2008 FMAP shall be substituted for the FMAP for the first, second, and third calendar quarters of FY2009, before the application of this Act. Provides that, for each eligible state for the third and fourth calendar quarters of FY2008, and for the first, second, and third calendar quarters of FY2009, the FMAP shall be increased by 2.95 percentage points. Provides for an increase in the cap on Medicaid payments to Puerto Rico, the Virgin Islands, Guam, the Northern Mariana Islands, and American Samoa.