# U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007/Title VII

TITLE VII — ELIMINATION OF SCHIP SHORTFALL AND OTHER HEALTH MATTERS
DEPARTMENT OF HEALTH AND HUMAN SERVICES
Centers for Medicare and Medicaid Services State Children's Health Insurance Fund
    For an additional amount to provide additional allotments to remaining shortfall States under section 2104(h)(4) of the Social Security Act, as inserted by section 6001, such sums as may be necessary, but not to exceed $650,000,000 for fiscal year 2007, to remain available until expended.
GENERAL PROVISIONS—THIS TITLE

### Sec. 7001.

    (a) Elimination of Remainder of SCHIP Funding Shortfalls, Tiered Match, and Other Limitation on Expenditures.—
       Section 2104(h) of the Social Security Act (42 U.S.C. 1397dd(h)), as added by section 201(a) of the National Institutes of Health Reform Act of 2006 (Public Law 109-482), is amended—
       (1) in the heading for paragraph (2), by striking "remainder of reduction" and inserting "part"; and
       (2) by striking paragraph (4) and inserting the following:
                   "(4) Additional amounts to eliminate remainder of fiscal year 2007 funding shortfalls.—
                      "(A) In general.—From the amounts provided in advance in appropriations Acts, the Secretary shall allot to each remaining shortfall State described in subparagraph (B) such amount as the Secretary determines will eliminate the estimated shortfall described in such subparagraph for the State for fiscal year 2007.
                      "(B) Remaining shortfall state described.—For purposes of subparagraph (A), a remaining shortfall State is a State with a State child health plan approved under this title for which the Secretary estimates, on the basis of the most recent data available to the Secretary as of the date of the enactment of this paragraph, that the projected Federal expenditures under such plan for the State for fiscal year 2007 will exceed the sum of—
                         "(i) the amount of the State's allotments for each of fiscal years 2005 and 2006 that will not be expended by the end of fiscal year 2006;
                         "(ii) the amount of the State's allotment for fiscal year 2007; and
                         "(iii) the amounts, if any, that are to be redistributed to the State during fiscal year 2007 in accordance with paragraphs (1) and (2).".
    (b) Conforming Amendments.—
       Section 2104(h) of such Act (42 U.S.C. 1397dd(h)) (as so added), is amended—
       (1) in paragraph (1)(B), by striking "subject to paragraph (4)(B) and";
       (2) in paragraph (2)(B), by striking "subject to paragraph (4)(B) and";
       (3) in paragraph (5)(A), by striking "and (3)" and inserting "(3), and (4)"; and
       (4) in paragraph (6)—
          (A) in the first sentence—
             (i) by inserting "or allotted" after "redistributed"; and
             (ii) by inserting "or allotments" after "redistributions"; and
          (B) by striking "and (3)" and inserting "(3), and (4)".

### Sec. 7002.

    (a) Prohibition.—
       (1) Limitation on secretarial authority.—
          Notwithstanding any other provision of law, the Secretary of Health and Human Services shall not, prior to the date that is 1 year after the date of enactment of this Act, take any action (through promulgation of regulation, issuance of regulatory guidance, or other administrative action) to—
          (A) finalize or otherwise implement provisions contained in the proposed rule published on January 18, 2007, on pages 2236 through 2248 of volume 72, Federal Register (relating to parts 433, 447, and 457 of title 42, Code of Federal Regulations);
          (B) promulgate or implement any rule or provisions similar to the provisions described in subparagraph (A) pertaining to the Medicaid program established under title XIX of the Social Security Act or the State Children's Health Insurance Program established under title XXI of such Act; or
          (C) promulgate or implement any rule or provisions restricting payments for graduate medical education under the Medicaid program.
       (2) Continuation of other secretarial authority.—
          The Secretary of Health and Human Service shall not be prohibited during the period described in paragraph (1) from taking any action (through promulgation of regulation, issuance of regulatory guidance, or other administrative action) to enforce a provision of law in effect as of the date of enactment of this Act with respect to the Medicaid program or the State Children's Health Insurance Program, or to promulgate or implement a new rule or provision during such period with respect to such programs, other than a rule or provision described in paragraph (1) and subject to the prohibition set forth in that paragraph.
    (b) Requirement for Use of Tamper-Resistant Prescription Pads Under the Medicaid Program.—
       (1) In general.—
          Section 1903(i) of the Social Security Act (42 U.S.C. 1396b(i)) is amended—
          (A) by striking "or" at the end of paragraph (21);
          (B) by striking the period at the end of paragraph (22) and inserting "; or"; and
          (C) by inserting after paragraph (22) the following new paragraph:
                   "(23) with respect to amounts expended for medical assistance for covered outpatient drugs (as defined in section 1927(k)(2)) for which the prescription was executed in written (and non-electronic) form unless the prescription was executed on a tamper-resistant pad.".
       (2) Effective date.—
          The amendments made by paragraph (1) shall apply to prescriptions executed after September 30, 2007.
    (c) Extension of Certain Pharmacy Plus Waivers.—
       (1) Authority to continue to operate waivers.—
          Notwithstanding any other provision of law, any State that is operating a Pharmacy Plus waiver described in paragraph (2) which would otherwise expire on June 30, 2007, may elect to continue to operate the waiver through December 31, 2009, and if a State elects to continue to operate such a waiver, the Secretary of Health and Human Services shall approve the continuation of the waiver through December 31, 2009.
       (2) Pharmacy plus waiver described.—For purposes of paragraph (1), a Pharmacy Plus waiver described in this paragraph is a waiver approved by the Secretary of Health and Human Services under the authority of section 1115 of the Social Security Act (42 U.S.C. 1315) that provides coverage for prescription drugs for individuals who have attained age 65 and whose family income does not exceed 200 percent of the poverty line (as defined in section 2110(c)(5) of such Act (42 U.S.C. 1397jj(c)(5))).