To provide assistance to individuals and States affected by Hurricane Katrina.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``QI, TMA, and Abstinence Programs 
Extension and Hurricane Katrina Unemployment Relief Act of 2005''.

                       TITLE I--HEALTH PROVISIONS

SEC. 101. EXTENSION OF QUALIFIED INDIVIDUAL (QI) PROGRAM.

    (a) Through September 2007.--Section 1902(a)(10)(E)(iv) of the 
Social Security Act (42 U.S.C. 1396a(a)(10)(E)(iv)) is amended by 
striking ``September 2005'' and inserting ``September 2007''.
    (b) Extending Total Amount Available for Allocation.--Section 
1933(g) of such Act (42 U.S.C. 1396u-3(g)) is amended--
        (1) in paragraph (2)--
            (A) by striking ``and'' at the end of subparagraph (B);
            (B) by striking the period at the end of subparagraph (C) 
        and inserting a semicolon; and
            (C) by adding at the end the following new subparagraphs:
            ``(D) for the period that begins on October 1, 2005, and 
        ends on December 31, 2005, the total allocation amount is 
        $100,000,000;
            ``(E) for the period that begins on January 1, 2006, and 
        ends on September 30, 2006, the total allocation amount is 
        $300,000,000;
            ``(F) for the period that begins on October 1, 2006, and 
        ends on December 31, 2006, the total allocation amount is 
        $100,000,000; and
            ``(G) for the period that begins on January 1, 2007, and 
        ends on September 30, 2007, the total allocation amount is 
        $300,000,000.''; and
        (2) in paragraph (3), in the matter preceding subparagraph (A), 
    by inserting ``, (D), or (F)'' after ``subparagraph (B)''.
    (c) Effective Date.--The amendments made by this section shall be 
effective as of September 30, 2005.

SEC. 102. EXTENSION OF TRANSITIONAL MEDICAL ASSISTANCE (TMA) AND 
              ABSTINENCE EDUCATION PROGRAM.

    Effective as if enacted on September 30, 2005, activities 
authorized by sections 510 and 1925 of the Social Security Act shall 
continue through December 31, 2005, in the manner authorized for fiscal 
year 2005, notwithstanding section 1902(e)(1)(A) of such Act, and out 
of any money in the Treasury of the United States not otherwise 
appropriated, there are hereby appropriated such sums as may be 
necessary for such purpose. Grants and payments may be made pursuant to 
this authority through the first quarter of fiscal year 2006 at the 
level provided for such activities through the first quarter of fiscal 
year 2005.

SEC. 103. ELIMINATION OF MEDICARE COVERAGE OF DRUGS USED FOR TREATMENT 
              OF SEXUAL OR ERECTILE DYSFUNCTION.

    (a) In General.--Section 1860D-2(e)(2)(A) of the Social Security 
Act (42 U.S.C. 1395w-102(e)(2)(A)) is amended--
        (1) by striking the period at the end and inserting ``, as such 
    sections were in effect on the date of the enactment of this 
    part.''; and
        (2) by adding at the end the following: ``Such term also does 
    not include a drug when used for the treatment of sexual or 
    erectile dysfunction, unless such drug were used to treat a 
    condition, other than sexual or erectile dysfunction, for which the 
    drug has been approved by the Food and Drug Administration.''.
    (b) Construction.--Nothing in this section shall be construed as 
preventing a prescription drug plan or an MA-PD plan from providing 
coverage of drugs for the treatment of sexual or erectile dysfunction 
as supplemental prescription drug coverage under section 1860D-
2(a)(2)(A)(ii) of the Social Security Act (42 U.S.C. 1395w-
102(a)(2)(A)(ii)).
    (c) Effective Dates.--The amendment made by subsection (a)(1) shall 
take effect as if included in the enactment of the Medicare 
Prescription Drug, Improvement, and Modernization Act of 2003 (Public 
Law 108-173) and the amendment made by subsection (a)(2) shall apply to 
coverage for drugs dispensed on or after January 1, 2007.

SEC. 104. ELIMINATION OF MEDICAID COVERAGE OF DRUGS USED FOR TREATMENT 
              OF SEXUAL OR ERECTILE DYSFUNCTION.

    (a) In General.--Section 1927(d)(2) of the Social Security Act (42 
U.S.C. 1396r-8(d)(2)) is amended by adding at the end the following new 
subparagraph:
            ``(K) Agents when used for the treatment of sexual or 
        erectile dysfunction, unless such agents are used to treat a 
        condition, other than sexual or erectile dysfunction, for which 
        the agents have been approved by the Food and Drug 
        Administration.''.
    (b) Elimination of Federal Payment Under Medicaid Program.--Section 
1903(i) of such Act (42 U.S.C. 1396b(i)) is amended--
        (1) by striking ``or'' at the end of paragraph (19);
        (2) by striking the period at the end of paragraph (20) and 
    inserting ``; or''; and
        (3) by inserting after paragraph (20) the following new 
    paragraph:
        ``(21) with respect to amounts expended for covered outpatient 
    drugs described in section 1927(d)(2)(K) (relating to drugs when 
    used for treatment of sexual or erectile dysfunction).''.
    (c) Clarification of No Effect on Determination of Base 
Expenditures.--Section 1935(c)(3)(B)(ii)(II) of such Act (42 U.S.C. 
1396v(c)(3)(B)(ii)(II)) is amended by inserting ``, including drugs 
described in subparagraph (K) of section 1927(d)(2)'' after ``1860D-
2(e)''.
    (d) Effective Date.--The amendments made by this section shall 
apply to drugs dispensed on or after January 1, 2006.

             TITLE II--ASSISTANCE RELATING TO UNEMPLOYMENT

SEC. 201. SPECIAL TRANSFER IN FISCAL YEAR 2006.

    Section 903 of the Social Security Act (42 U.S.C. 1103) is amended 
by adding at the end the following:
    ``(e) Special Transfer in Fiscal Year 2006.--Not later than 10 days 
after the date of the enactment of this subsection, the Secretary of 
the Treasury shall transfer from the Federal unemployment account--
        ``(1) $15,000,000 to the account of Alabama in the Unemployment 
    Trust Fund;
        ``(2) $400,000,000 to the account of Louisiana in the 
    Unemployment Trust Fund; and
        ``(3) $85,000,000 to the account of Mississippi in the 
    Unemployment Trust Fund.''.

SEC. 202. FLEXIBILITY IN UNEMPLOYMENT COMPENSATION ADMINISTRATION TO 
              ADDRESS HURRICANE KATRINA.

    Notwithstanding any provision of section 302(a) or 303(a)(8) of the 
Social Security Act, any State may, on or after August 28, 2005, use 
any amounts received by such State pursuant to title III of the Social 
Security Act to assist in the administration of claims for compensation 
on behalf of any other State if a major disaster was declared with 
respect to such other State or any area within such other State under 
the Robert T. Stafford Disaster Relief and Emergency Assistance Act by 
reason of Hurricane Katrina.

SEC. 203. REGULATIONS.

    The Secretary of Labor may prescribe any operating instructions or 
regulations necessary to carry out this title and any amendment made by 
this title.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.

Summary: QI, TMA, and Abstinence Programs Extension and Hurricane Katrina Unemployment Relief Act of 2005 - Title I: Health Provisions - Amends XIX (Medicaid) of the Social Security Act to extend from September 2005 through September 2007 the qualified individual program . Prescribes additional allocations for such program for the extended period. Extends through December 31, 2005, Transitional Medical Assistance (TMA) and the separate program for abstinence education. Eliminates Medicare and Medicaid coverage under titles XVIII and XIX of the Social Security Act of drugs used for the treatment of sexual or erectile dysfunction, beginning in 2007. Title II: Assistance Relating to Unemployment - Amends title IX of the Social Security Act to direct the Secretary to transfer from the federal unemployment account: (1) $15 million to the account of Alabama in the Unemployment Trust Fund. (2) $400 million to the account of Louisiana in the Unemployment Trust Fund. And (3) $85 million to the account of Mississippi in the Unemployment Trust Fund. Authorizes any state to use any amounts received by such state pursuant to title III of the Social Security Act to assist in the administration of claims for compensation on behalf of any other state, if a major disaster was declared with respect to such other state or any area within it, under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, by reason of Hurricane Katrina.