I 

109TH CONGRESS 

1ST SESSION H. R. 3335 

To prevent a severe reduction in the Federal medical assistance percentage 

determined for a State for fiscal year 2006 and to provide for adjustment 

in computation of such percentage to disregard an extraordinary employer pension contribution. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 19, 2005 

Mr. DINGELL (for himself, Mr. BROWN of Ohio, Mr. WAXMAN, Mr. KILDEE, 

and Mr. MCDERMOTT) introduced the following bill; which was referred 

to the Committee on Energy and Commerce 

A BILL 

To prevent a severe reduction in the Federal medical assistance percentage determined for a State for fiscal year 

2006 and to provide for adjustment in computation of 

such percentage to disregard an extraordinary employer 

pension contribution. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Medicaid Formula 

5 Fairness Act of 2005’’. 
2 

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1 SEC. 2. LIMITATION ON SEVERE REDUCTION IN THE MED2 ICAID FMAP FOR FISCAL YEAR 2006. 

3 (a) LIMITATION ON REDUCTION.—In no case shall 

4 the FMAP for a State for fiscal year 2006 be less than 

5 the greater of the following: 

6 (1) HALF PERCENTAGE POINT DECREASE.— 

7 The FMAP determined for the State for fiscal year 

8 2005, decreased by 0.5 percentage points. 

9 (2) COMPUTATION WITHOUT RETROACTIVE AP10 PLICATION OF REBENCHMARKED PER CAPITA IN11 COME.—The FMAP that would have been deter12 mined for the State for fiscal year 2006 if the per 

13 capita incomes for 2001 and 2002 that was used to 

14 determine the FMAP for the State for fiscal year 

15 2005 were used. 

16 (b) SCOPE OF APPLICATION.—The FMAP applicable 

17 to a State for fiscal year 2006 after the application of 

18 subsection (a) shall apply only for purposes of titles XIX 

19 and XXI of the Social Security Act (including for purposes 

20 of making disproportionate share hospital payments de21 scribed in section 1923 of such Act (42 U.S.C. 1396r– 

22 4) and payments under such titles that are based on the 

23 enhanced FMAP described in section 2105(b) of such Act 

24 (42 U.S.C. 1397ee(b))) and shall not apply with respect 

25 to payments under title IV of such Act (42 U.S.C. 601 

26 et seq.). 
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1 (c) DEFINITIONS.—In this section: 

2 (1) FMAP.—The term ‘‘FMAP’’ means the 

3 Federal medical assistance percentage, as defined in 

4 section 1905(b) of the Social Security Act (42 

5 U.S.C. 1396d(b)). 

6 (2) STATE.—The term ‘‘State’’ has the mean7 ing given such term for purposes of title XIX of the 

8 Social Security Act (42 U.S.C. 1396 et seq.). 

9 SEC. 3. REPEAL. 

10 Effective as of October 1, 2006, section 2 is repealed 

11 and shall not apply to any fiscal year after fiscal year 

12 2006. 

13 SEC. 4. ADJUSTMENT IN COMPUTATION OF MEDICAID 

14 FMAP TO DISREGARD AN EXTRAORDINARY 

15 EMPLOYER PENSION CONTRIBUTION. 

16 (a) IN GENERAL.—Only for purposes of computing 

17 the Federal medical assistance percentage under section 

18 1905(b) of the Social Security Act (42 U.S.C. 1396d(b)) 

19 for a State for a fiscal year (beginning with fiscal year 

20 2006), any significantly disproportionate employer pension 

21 contribution described in subsection (b) shall be dis22 regarded in computing the per capita income of such 

23 State, but shall not be disregarded in computing the per 

24 capita income for the continental United States (and Alas25 ka) and Hawaii. 
4 

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1 (b) SIGNIFICANTLY DISPROPORTIONATE EMPLOYER

2 PENSION CONTRIBUTION.—For purposes of subsection 

3 (a), a significantly disproportionate employer pension con4 tribution described in this subsection with respect to a 

5 State for a fiscal year is an employer contribution towards 

6 pensions that is allocated to such State for a period if the 

7 aggregate amount so allocated exceeds 30 percent of the 

8 total increase in personal income in that State for the pe9 riod involved. 

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