I 

110TH CONGRESS 

1ST SESSION H. R. 2147 

To amend titles XXI and XIX of the Social Security Act to extend the 

State Children’s Health Insurance Program (SCHIP) and streamline 

enrollment under SCHIP and Medicaid and to amend the Internal Revenue Code of 1986 to provide for a healthy savings tax credit for 

purchase of children’s health coverage. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 3, 2007 

Mr. EMANUEL (for himself, Mr. RAMSTAD, Mr. LAHOOD, Mr. ROSS, Ms. 

SCHWARTZ, Ms. SHEA-PORTER, Mrs. EMERSON, Mr. KENNEDY, Mr. 

COURTNEY, Mr. PLATTS, Mr. SCHIFF, Mrs. MCCARTHY of New York, 

Mr. MCNULTY, Mr. ALEXANDER, Ms. HIRONO, Ms. BERKLEY, Mr. SARBANES, Mr. COHEN, Mr. MORAN of Virginia, Ms. NORTON, Mr. JACKSON

of Illinois, Mr. DAVIS of Alabama, Mr. SMITH of Washington, Mr. KIND, 

Mrs. TAUSCHER, Mr. CROWLEY, Mr. RUSH, Mr. HARE, Mr. HIGGINS, 

Mr. BRALEY of Iowa, Mr. SNYDER, Mr. MEEKS of New York, and Mr. 

CLEAVER) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committee on 

Ways and Means, for a period to be subsequently determined by the 

Speaker, in each case for consideration of such provisions as fall within 

the jurisdiction of the committee concerned 

A BILL 

To amend titles XXI and XIX of the Social Security Act 

to extend the State Children’s Health Insurance Program 

(SCHIP) and streamline enrollment under SCHIP and 

Medicaid and to amend the Internal Revenue Code of 

1986 to provide for a healthy savings tax credit for 

purchase of children’s health coverage. 


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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; TABLE OF CONTENTS; FINDINGS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Healthy Kids Act of 2007’’. 

6 (b) TABLE OF CONTENTS.—The table of contents of 

7 this Act is as follows: 

Sec. 1. Short title; table of contents; findings. 

TITLE I—SCHIP EXTENSION 

Sec. 101. Extension of SCHIP program. 

Sec. 102. 1-year initial availability of SCHIP allotments. 

Sec. 103. Redistribution of unused allotments to address State funding shortfalls. 

TITLE II—INCREASING ENROLLMENT UNDER SCHIP AND 

MEDICAID 

Sec. 201. Bonus payments for States that implement administrative policies to 

streamline enrollment process. 

Sec. 202. State option to provide for ‘‘express lane’’ and simplified determinations of a child’s financial eligibility for medical assistance 

under Medicaid or child health assistance under SCHIP. 

Sec. 203. Information technology connections to improve health coverage determinations. 

Sec. 204. State option to expand or add coverage of certain pregnant women 

under SCHIP. 

Sec. 205. Optional coverage of legal immigrants under the medicaid program 

and SCHIP. 

Sec. 206. Authorizing adjustment of SCHIP allotment due to increased outreach. 

Sec. 207. Grants to promote innovative outreach and enrollment under Medicaid and SCHIP. 

Sec. 208. Model of Interstate coordinated enrollment and coverage process. 

Sec. 209. Authority for qualifying States to use portion of SCHIP allotment for 

any fiscal year for certain medicaid expenditures. 

Sec. 210. Application of medicaid outreach procedures to all pregnant women 

and children. 

Sec. 211. No impact on section 1115 waivers. 

Sec. 212. Elimination of counting medicaid child presumptive eligibility costs 

against title XXI allotment. 

Sec. 213. Prohibiting limitations on enrollment. 

TITLE III—HEALTHY SAVINGS TAX CREDIT 

Sec. 301. Healthy savings tax credit. 


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TITLE IV—BROKER REPORTING OF CUSTOMER’S BASIS IN 

SECURITIES TRANSACTIONS 

Sec. 401. Broker reporting of customer’s basis in securities transactions. 

1 (c) FINDINGS REGARDING THE NEED FOR UNI2 VERSAL HEALTH COVERAGE FOR CHILDREN.—Congress 

3 finds the following: 

4 (1) Currently, there are more than 9 million 

5 children who are uninsured in the United States. 

6 (2) Approximately 75 percent of uninsured chil7 dren are eligible for Medicaid or the State Children’s 

8 Health Insurance Program (SCHIP). 

9 (3) As the wealthiest nation in the world, the 

10 United States can and should be doing a better job 

11 to improve the health of children. 

12 (4) In 2004, according to the World Health Or13 ganization, the United States ranked 35th on infant 

14 mortality, behind Korea and Cuba. 

15 (5) Two-thirds of nations have lower rates of 

16 children dying from injuries than does the United 

17 States. 

18 (6) One-third of uninsured children in the 

19 United States went without any medical care for the 

20 entire year in 2003, while 88 percent of insured chil21 dren received care. 


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1 (7) Uninsured children more often have unmet 

2 health care needs and delay seeking care, resulting 

3 in poorer health. 

4 (8) Uninsured children are less likely to have 

5 access to and receive appropriate preventive care, 

6 such as immunizations, hearing and vision screens, 

7 and monitoring of growth and development. 

8 (9) Uninsured children are between three and 

9 five times more likely to have an unmet medical 

10 need than are insured children. 

11 (10) Uninsured children may delay necessary 

12 care because they visit a doctor only when their care 

13 needs become urgent. 

14 (11) Uninsured children are four times more 

15 likely than insured children to seek care in an emer16 gency department with conditions that could have 

17 been avoided. 

18 (12) The cost of unmet health needs among 

19 children extends beyond measurable health system 

20 costs. 

21 (13) Recognizing that children whose parents 

22 have health insurance are more likely to obtain pre23 ventive and necessary care, many States are employ24 ing strategies to promote coverage of the entire famVerDate Aug 31 2005 02:58 May 05, 2007 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2147.IH H2147

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1 ily and offer programs that leverage employer spon2 sored insurance. 

3 (14) Problems that should be managed or cured 

4 with regular access to health care result in lower 

5 school attendance. 

6 (15) In 2004, asthma alone accounted for an 

7 estimate 14 million lost school days among children. 

8 (16) Recurrent ear infections, which could be 

9 addressed through regular access to health care, re10 duce children’s ability to communicate and thus 

11 school readiness and performance. 

12 (d) FINDINGS REGARDING THE ROLE OF MEDICAID

13 AND SCHIP IN COVERING CHILDREN.—Congress finds 

14 the following: 

15 (1) Since SCHIP was created, enormous 

16 progress has been made in reducing disparities in 

17 children’s coverage rates. 

18 (2) SCHIP and Medicaid have improved chil19 dren’s coverage rates and access to needed health 

20 care services. 

21 (3) SCHIP and Medicaid account for the 30 

22 percent decline in the number of uninsured children 

23 since 1998, even as employer-based coverage de24 creased and the overall rate of uninsured people 

25 grew. 


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1 (4) Children enrolled in SCHIP or Medicaid are 

2 three times more likely to have a usual source of 

3 care than are uninsured children. 

4 (5) SCHIP reduces the percent of children with 

5 an unmet health care need. 

6 (6) According to a Federal evaluation of 

7 SCHIP, uninsured children who gained coverage 

8 through SCHIP received more preventive care, and 

9 their parents reported better access to providers and 

10 improved communications with their children’s doc11 tors. 

12 (7) SCHIP covers children who would otherwise 

13 be uninsured. 

14 (8) Most newly enrolled children in SCHIP 

15 were previously uninsured or had recently lost their 

16 Medicaid or private health coverage for involuntary 

17 reasons. 

18 (9) SCHIP established important strategies to 

19 avoid ‘‘crowd out’’ of existing health insurance cov20 erage, and research suggests that these measures re21 main critical to the effective use of public dollars. 

22 TITLE I—SCHIP EXTENSION 

23 SEC. 101. EXTENSION OF SCHIP PROGRAM. 

24 Section 2104 of the Social Security Act (42 U.S.C. 

25 1397dd) is amended— 


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1 (1) in subsection (a)— 

2 (A) by striking ‘‘and’’ at the end of para3 graph (9); 

4 (B) by striking the period at the end of 

5 paragraph (10) and inserting ‘‘; and’’; and 

6 (C) by adding at the end the following new 

7 paragraph: 

8 ‘‘(11) for each fiscal year 2008 and each subse9 quent fiscal year, $7,500,000,000 multiplied by the 

10 population and cost inflation factor for that fiscal 

11 year, as determined under subsection (i).’’; and 

12 (2) by adding at the end the following new sub13 section: 

14 ‘‘(i) POPULATION AND COST INFLATION FACTOR.— 

15 For purposes of subsection (a)(11), the population and 

16 cost inflation factor for a fiscal year is equal to the prod17 uct of the following: 

18 ‘‘(1) CHILD POPULATION GROWTH FACTOR.— 

19 One plus the percentage increase in the population 

20 of children under 20 years of age in the United 

21 States from July 1, 2007, to July 1 during the fiscal 

22 year involved, as projected by the Secretary based on 

23 the most recent published estimates of the Bureau 

24 of the Census before the beginning of the fiscal year 

25 involved. 


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1 ‘‘(2) PER CAPITA HEALTH CARE GROWTH FAC2 TOR.—One plus the percentage increase in the pro3 jected per capita amount of National Health Ex4 penditures from fiscal year 2007 to the fiscal year 

5 involved, as most recently published by the Secretary 

6 before the beginning of the fiscal year involved.’’. 

7 SEC. 102. 1-YEAR INITIAL AVAILABILITY OF SCHIP ALLOT8 MENTS. 

9 Section 2104(e) of the Social Security Act (42 U.S.C. 

10 1397dd(e)) is amended to read as follows: 

11 ‘‘(e) AVAILABILITY OF AMOUNTS ALLOTTED.— 

12 ‘‘(1) IN GENERAL.—Except as provided in para13 graphs (2) and (3), amounts allotted to a State pur14 suant to this section— 

15 ‘‘(A) for each of fiscal years 1998 through 

16 2007, shall remain available for expenditure by 

17 the State through the end of the second suc18 ceeding fiscal year; and 

19 ‘‘(B) for fiscal year 2008 and each fiscal 

20 year thereafter, shall remain available for ex21 penditure by the State through the end of the 

22 fiscal year involved. 

23 ‘‘(2) AVAILABILITY OF AMOUNTS REALLOT24 TED.—Subject to paragraph (3), amounts reallotted 

25 to a State under subsection (f) shall be available for 


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1 expenditure by the State through the end of the fis2 cal year in which they are reallotted. 

3 ‘‘(3) PERMANENT AVAILABILITY OF UNUSED

4 FUNDS.—Reallotted funds that are not used by the 

5 end of the fiscal year described in paragraph (2) 

6 shall be subject to reallotment under subsection (f) 

7 in subsequent fiscal years subject to such paragraph 

8 and shall remain available for subsequent reallot9 ment until expended.’’. 

10 SEC. 103. REDISTRIBUTION OF UNUSED ALLOTMENTS TO 

11 ADDRESS STATE FUNDING SHORTFALLS. 

12 Section 2104(f) of the Social Security Act (42 U.S.C. 

13 1397dd(f)) is amended— 

14 (1) by striking ‘‘The Secretary’’ and inserting 

15 the following: 

16 ‘‘(1) IN GENERAL.—The Secretary’’; 

17 (2) by striking ‘‘States that have fully expended 

18 the amount of their allotments under this section’’ 

19 and inserting ‘‘States that the Secretary determines 

20 with respect to the fiscal year for which unused al21 lotments are available for redistribution under this 

22 subsection, are shortfall States described in para23 graph (2) for such fiscal year’’; and 

24 (3) by adding at the end the following new 

25 paragraph: 


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1 ‘‘(2) SHORTFALL STATES DESCRIBED.— 

2 ‘‘(A) IN GENERAL.—For purposes of para3 graph (1), with respect to a fiscal year, a short4 fall State described in this subparagraph is a 

5 State with a State child health plan approved 

6 under this title for which the Secretary esti7 mates on the basis of the most recent data 

8 available to the Secretary, that the projected ex9 penditures under such plan for the State for the 

10 fiscal year will exceed the sum of— 

11 ‘‘(i) the amount of the State’s allot12 ments for any preceding fiscal years that 

13 remain available for expenditure and that 

14 will not be expended by the end of the im15 mediately preceding fiscal year; and 

16 ‘‘(ii) the amount of the State’s allot17 ment for the fiscal year (taking into ac18 count any increase made in such allotment 

19 under section 2104(j), as added by section 

20 205(a) of the Healthy Kids Act of 2007). 

21 ‘‘(B) PRORATION RULE.—If the amounts 

22 available for redistribution under paragraph (1) 

23 for a fiscal year are less than the total amounts 

24 of the estimated shortfalls determined for the 

25 year under subparagraph (A), the amount to be 


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1 reallotted under such paragraph for each short2 fall State shall be reduced proportionally. 

3 ‘‘(C) RETROSPECTIVE ADJUSTMENT.—The 

4 Secretary may adjust the estimates and deter5 minations made under paragraph (1) and this 

6 paragraph with respect to a fiscal year as nec7 essary on the basis of the amounts reported by 

8 States not later than November 30 of the suc9 ceeding fiscal year, as approved by the Sec10 retary.’’. 

11 TITLE II—INCREASING ENROLL12 MENT UNDER SCHIP AND 

13 MEDICAID 

14 SEC. 201. BONUS PAYMENTS FOR STATES THAT IMPLE15 MENT ADMINISTRATIVE POLICIES TO 

16 STREAMLINE ENROLLMENT PROCESS. 

17 (a) BONUS IN FMAP AND ENHANCED FMAP FOR

18 APPLICATION OF STREAMLINE ENROLLMENT PROCE19 DURES UNDER MEDICAID AND SCHIP.—Section 2102 of 

20 the Social Security Act (42 U.S.C. 1397bb) is amended 

21 by adding at the end the following new subsection: 

22 ‘‘(d) STREAMLINE ENROLLMENT PROCEDURES.— 

23 ‘‘(1) INCREASE IN FEDERAL MATCHING

24 RATE.— 


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1 ‘‘(A) IN GENERAL.—In the case of a State 

2 that meets the condition described in subpara3 graph (B) (relating to agreeing to implement 

4 administrative enrollment policies under this 

5 title and title XIX) for a fiscal year, the Fed6 eral medical assistance percentage (for purposes 

7 of title XIX only) and the enhanced FMAP (for 

8 purposes of this title, but determined without 

9 regard to the application of this subsection to 

10 the Federal medical assistance percentage 

11 under title XIX) otherwise computed for such 

12 fiscal year as applied to medical assistance for 

13 children and child health assistance, respec14 tively, shall be increased by 2 percentage points. 

15 ‘‘(B) AGREEING TO REMOVE ENROLLMENT

16 AND ACCESS BARRIERS.—The condition de17 scribed in this subparagraph, for a State for a 

18 fiscal year is that the State agrees to do the fol19 lowing: 

20 ‘‘(i) PRESUMPTIVE ELIGIBILITY FOR

21 CHILDREN.—The State agrees— 

22 ‘‘(I) to provide presumptive eligi23 bility for children under this title and 

24 title XIX in accordance with section 

25 1920A; and 


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1 ‘‘(II) to treat any items or serv2 ices that are provided to an uncovered 

3 child (as defined in section 

4 2110(c)(8)) who is determined ineli5 gible for medical assistance under title 

6 XIX as child health assistance for 

7 purposes of paying a provider of such 

8 items or services, so long as such 

9 items or services would be considered 

10 child health assistance for a targeted 

11 low-income child under this title. 

12 ‘‘(ii) 12-MONTH CONTINUOUS ELIGI13 BILITY.—The State agrees to provide that 

14 eligibility of children for assistance under 

15 this title and title XIX shall not be regu16 larly redetermined more often than once 

17 every year. 

18 ‘‘(iii) AUTOMATIC RENEWAL.—The 

19 State agrees to provide for the automatic 

20 renewal of the eligibility of children for as21 sistance under this title and under title 

22 XIX if the child’s family does not report 

23 any changes to family income or other rel24 evant circumstances, subject to verification 


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1 of information from databases available to 

2 the State for such purpose. 

3 ‘‘(iv) ELIMINATION OF ASSET TEST.— 

4 The State has amended its plans under 

5 this title and title XIX so that no asset or 

6 resource test is applied for eligibility under 

7 this title or title XIX with respect to chil8 dren. 

9 ‘‘(v) ADMINISTRATIVE VERIFICATION

10 OF INCOME.—The State agrees to permit 

11 the family of a child applying for child 

12 health assistance under this title or med13 ical assistance under title XIX to declare 

14 and certify, by signature under penalty of 

15 perjury, the family income for purposes of 

16 collecting financial eligibility information.’’. 

17 (b) CONFORMING MEDICAID AMENDMENTS.— 

18 (1) IN GENERAL.—Section 1905(b) of the So19 cial Security Act (42 U.S.C. 1396d(b)) is amended 

20 by inserting ‘‘and section 2102(d)(1)’’ after ‘‘section 

21 1933(d)’’. 

22 (2) INCREASE IN MEDICAID CAP FOR TERRI23 TORIES.—Section 1108(g) of such Act (42 U.S.C. 

24 1308(g)) is amended— 


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1 (A) in paragraph (2), by striking ‘‘para2 graph (3)’’ and inserting ‘‘paragraphs (3) and 

3 (4)’’; and 

4 (B) by adding at the end the following new 

5 paragraph: 

6 ‘‘(4) DISREGARD OF INCREASED EXPENDI7 TURES DIRECTLY ATTRIBUTABLE TO INCREASE IN

8 FMAP FOR APPLICATION OF STREAMLINED ENROLL9 MENT PROCEDURES.—The limitation of paragraph 

10 (2) shall not apply to payment under title XIX to a 

11 territory insofar as such payment is attributable to 

12 an increase in the Federal medical assistance per13 centage under subparagraph (A) of section 

14 2102(d)(1).’’. 

15 (c) EFFECTIVE DATE.—The amendments made by 

16 this section shall apply beginning with fiscal year 2007. 

17 SEC. 202. STATE OPTION TO PROVIDE FOR ‘‘EXPRESS LANE’’

18 AND SIMPLIFIED DETERMINATIONS OF A 

19 CHILD’S FINANCIAL ELIGIBILITY FOR MED20 ICAL ASSISTANCE UNDER MEDICAID OR 

21 CHILD HEALTH ASSISTANCE UNDER SCHIP. 

22 (a) MEDICAID.—Section 1902(e) of the Social Secu23 rity Act (42 U.S.C. 1396a(e)) is amended by adding at 

24 the end the following: 


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1 ‘‘(13)(A) At the option of the State, the plan may 

2 provide that eligibility requirements (including such re3 quirements applicable to redeterminations or renewals of 

4 eligibility) for medical assistance relating to income, assets 

5 (or resources), or citizenship status are met for a child 

6 who is under an age specified by the State (not to exceed 

7 21 years of age) by using a determination made within 

8 a reasonable period (as determined by the State) before 

9 its use for this purpose, of the child’s family or household 

10 income, or if applicable for purposes of determining eligi11 bility under this title or title XXI, assets or resources, or 

12 citizenship status, respectively, (notwithstanding any other 

13 provision of law, including sections 1902(a)(46)(B), 

14 1903(x), and 1137(d)), by a Federal or State agency, or 

15 a public or private entity making such determination on 

16 behalf of such agency, specified by the plan, including an 

17 agency administering the State program funded under 

18 part A of title IV, the Food Stamp Act of 1977, the Rich19 ard B. Russell National School Lunch Act, or the Child 

20 Nutrition Act of 1966, notwithstanding any differences in 

21 budget unit, disregard, deeming, or other methodology, 

22 but only if— 

23 ‘‘(i) the agency has fiscal liabilities or respon24 sibilities affected by such determination; and 


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1 ‘‘(ii) the agency or entity notifies the child’s 

2 family— 

3 ‘‘(I) of the information which shall be dis4 closed in accordance with this subparagraph; 

5 ‘‘(II) that the information disclosed will be 

6 used solely for purposes of determining eligi7 bility for medical assistance under this title or 

8 for child health assistance under title XXI; and 

9 ‘‘(III) that interagency agreements limit 

10 the use of such information to that purpose; 

11 and 

12 ‘‘(iii) the requirements of section 1939 are sat13 isfied. 

14 ‘‘(B) Nothing in this paragraph shall be construed 

15 to relieve a State of the obligation to determine, on an16 other basis, eligibility for medical assistance under this 

17 title or for child health assistance under title XXI if a 

18 child is determined ineligible for such assistance on the 

19 basis of information furnished pursuant to this paragraph. 

20 ‘‘(C) If a State applies the eligibility process de21 scribed in subparagraph (A) to individuals eligible under 

22 this title and to individuals eligible under title XXI, the 

23 State may, at its option, implement its duties under sub24 paragraphs (A) and (B) of section 2102(b)(3) using either 

25 or both of the following approaches: 


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1 ‘‘(i) The State may— 

2 ‘‘(I) establish a threshold percentage of the 

3 Federal poverty level (that shall exceed the in4 come eligibility level applicable for a population 

5 of individuals under this title by 30 percentage 

6 points (as a fraction of the Federal poverty 

7 level) or such other higher number of percent8 age points as the State determines reflects the 

9 typical application of income methodologies by 

10 the non-health program and the State plan 

11 under this title); and 

12 ‘‘(II) provide that, with respect to any in13 dividual within such population whom a non14 health agency determines has income that does 

15 not exceed such threshold percentage for such 

16 population, such individual is eligible for med17 ical assistance under this title (regardless of 

18 whether such individual would otherwise be de19 termined to be eligible to receive such assist20 ance). 

21 In exercising the approach under this clause, a State 

22 shall inform families whose children are enrolled in 

23 a State child health plan under title XXI based on 

24 having family income above the threshold described 

25 in subclause (I) that they may qualify for medical 


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1 assistance under this title and, at their option, can 

2 seek a regular eligibility determination for such as3 sistance for their child. 

4 ‘‘(ii) Regardless of whether a State otherwise 

5 provides for presumptive eligibility under section 

6 1920A, a State may provide presumptive eligibility 

7 under this title, consistent with subsection (e) of sec8 tion 1920A, to a child who, based on a determina9 tion by a non-health agency, would qualify for child 

10 health assistance under a State child health plan 

11 under title XXI. During such presumptive eligibility 

12 period, the State may determine the child’s eligibility 

13 for medical assistance under this title, pursuant to 

14 subparagraph (A) of section 2102(b)(3), based on 

15 telephone contact with family members, access to 

16 data available in electronic or paper form, and other 

17 means of gathering information that are less bur18 densome to the family than completing an applica19 tion form on behalf of the child. The procedures de20 scribed in the previous sentence may be used regard21 less of whether the State uses similar procedures 

22 under other circumstances for purposes of deter23 mining eligibility for medical assistance under this 

24 title. 


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1 ‘‘(D) At the option of a State, the eligibility process 

2 described in subparagraph (A) may apply to an individual 

3 who is not a child. 

4 ‘‘(E)(i) At the option of a State, an individual deter5 mined to be eligible for medical assistance or child health 

6 assistance pursuant to subparagraph (A), (C), or (D) or 

7 other procedures through which eligibility is determined 

8 based on data obtained from sources other than the indi9 vidual may receive medical assistance under this title if 

10 such individual (or, in the case of an individual under age 

11 19 (or if the State elects the option under subparagraph 

12 (A), age 20 or 21) who is not authorized to consent to 

13 medical care, the individual’s parent, guardian, or other 

14 caretaker relative) has acknowledged notice of such deter15 mination and has consented to such eligibility determina16 tion. The State (at its option) may waive any otherwise 

17 applicable requirements for signatures by or on behalf of 

18 an individual who has so consented. 

19 ‘‘(ii) In the case of an individual enrolled pursuant 

20 to clause (i), the State shall inform the individual (or, in 

21 the case of an individual under age 19 (or if the State 

22 elects the option under subparagraph (A), age 20 or 21), 

23 the individual’s parent, guardian, or other caretaker rel24 ative) about the significance of such enrollment, including 

25 appropriate methods to access covered services. 


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1 ‘‘(F) For purposes of this paragraph— 

2 ‘‘(i) the term ‘non-health agency’ means an 

3 agency or entity described in subparagraph (A); and 

4 ‘‘(ii) the term ‘non-health benefits’ means the 

5 benefits or assistance provided by a non-health agen6 cy.’’. 

7 (b) SCHIP.—Section 2107(e)(1) of such Act (42 

8 U.S.C. 1397gg(e)(1)) is amended by redesignating sub9 paragraphs (B) through (E) as subparagraphs (C) 

10 through (F) and by inserting after subparagraph (B) the 

11 following new subparagraph: 

12 ‘‘(C) Section 1902(e)(13) (relating to the 

13 State option to base a determination of a child’s 

14 eligibility for assistance on determinations made 

15 by a program providing nutrition or other pub16 lic assistance (except that the State option 

17 under subparagraph (D) of such section shall 

18 apply under this title only if an individual is 

19 pregnant)).’’. 

20 (c) PRESUMPTIVE ELIGIBILITY.—Section 1920A of 

21 such Act (42 U.S.C. 1396r–1a) is amended— 

22 (1) in subsection (b)(3)(A)(i), is amended by 

23 striking ‘‘or (IV)’’ and inserting ‘‘(IV) is an agency 

24 or entity described in section 1902(e)(13)(A), or 

25 (V)’’; and 


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1 (2) by adding at the end the following: 

2 ‘‘(e) In the case of a State with a child health plan 

3 under title XXI that provides for presumptive eligibility 

4 under such plan for children, the State shall make a rea5 sonable effort to place each presumptively eligible child in 

6 the program under this title or title XXI for which the 

7 child appears most likely to qualify. During the child’s pe8 riod of presumptive eligibility, the State shall receive Fed9 eral matching funds under section 1903 or section 2105, 

10 depending on the program in which the child has been 

11 placed. If at the conclusion of such period, the child is 

12 found to qualify for, and is enrolled in, the program estab13 lished under this title or title XXI when the child was en14 rolled in the program under the other such title during 

15 such period, the State’s receipt of Federal matching funds 

16 shall be adjusted both retroactively and prospectively so 

17 that Federal matching funds are provided, both during 

18 and following such period of presumptive eligibility, based 

19 on the program in which the child is enrolled.’’. 

20 (d) SIGNATURE REQUIREMENTS.—Section 1902(a) 

21 of such Act (42 U.S.C. 1396a(a)) is amended by adding 

22 at the end the following: ‘‘Notwithstanding any other pro23 vision of law, a signature under penalty of perjury shall 

24 not be required on an application form for medical assist25 ance as to any element of eligibility for which eligibility 


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1 is based on information received from a source other than 

2 applicant, rather than on representations from the appli3 cant. Notwithstanding any other provision of law, any sig4 nature requirement for an application for medical assist5 ance may be satisfied through an electronic signature, as 

6 defined in section 1710(1) of the Government Paperwork 

7 Elimination Act (44 U.S.C. 3504 note).’’. 

8 SEC. 203. INFORMATION TECHNOLOGY CONNECTIONS TO 

9 IMPROVE HEALTH COVERAGE DETERMINA10 TIONS. 

11 (a) ENHANCED FEDERAL FUNDING FOR IMPROVE12 MENTS RELATED TO IMPLEMENTATION OF CERTAIN

13 MODEL OUTREACH AND ENROLLMENT PRACTICES.— 

14 (1) IN GENERAL.—Section 1903(a)(3)(A) of the 

15 Social Security Act (42 U.S.C. 1396b(a)(3)(A)) is 

16 amended— 

17 (A) by striking ‘‘and’’ at the end of clause 

18 (i); and 

19 (B) by adding at the end the following new 

20 clause: 

21 ‘‘(iii) 75 percent of so much of the sums 

22 expended during such quarter as are attrib23 utable to the design, development, or installa24 tion of such mechanized claims processing and 

25 information retrieval systems and the impleVerDate Aug 31 2005 02:58 May 05, 2007 Jkt 059200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\H2147.IH H2147

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1 mentation of administrative systems and proc2 esses (including modification of eligibility com3 puter systems to permit the exchange of elec4 tronic information with other Federal or State 

5 programs) as the Secretary determines are di6 rectly related to the implementation of a model 

7 outreach and enrollment practice described in 

8 subparagraph (B), (C), (D), (E), or (F) of sec9 tion 1905(y)(3), and’’. 

10 (2) CONFORMING AMENDMENT TO ENSURE

11 AVAILABILITY FOR TERRITORIES.—Section 1108(g) 

12 of such Act (42 U.S.C. 1308(g)), as amended by 

13 section 201(b)(2)(B), is amended— 

14 (A) in paragraph (2), by striking ‘‘and 

15 (4)’’ and inserting ‘‘, (4), and (5)’’; and 

16 (B) by adding at the end the following new 

17 paragraph: 

18 ‘‘(5) ADDITIONAL INCREASE FOR CERTAIN EX19 PENDITURES.—With respect to fiscal year 2008 and 

20 each fiscal year thereafter, if Puerto Rico, the Virgin 

21 Islands, Guam, the Northern Mariana Islands, or 

22 American Samoa qualify for a payment under sec23 tion 1903(a)(3)(A)(iii) for a calendar quarter of 

24 such fiscal year, the additional Federal financial par25 ticipation under such section shall not be counted toVerDate Aug 31 2005 02:58 May 05, 2007 Jkt 059200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\H2147.IH H2147

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1 wards the limitation on expenditures under title XIX 

2 for such commonwealth or territory otherwise deter3 mined under subsection (f) and this subsection for 

4 such fiscal year.’’. 

5 (b) AUTHORIZATION OF INFORMATION DISCLO6 SURE.— 

7 (1) IN GENERAL.—Title XIX of such Act (42 

8 U.S.C. 1396 et seq.) is amended— 

9 (A) by redesignating section 1939 as sec10 tion 1940; and 

11 (B) by inserting after section 1938 the fol12 lowing: 

13 ‘‘AUTHORIZATION TO RECEIVE PERTINENT INFORMATION

14 ‘‘SEC. 1939. (a) IN GENERAL.—Notwithstanding any 

15 other provision of law, a Federal or State agency or pri16 vate entity in possession of the sources of data potentially 

17 pertinent to eligibility determinations under this title or 

18 title XXI (including eligibility files maintained by pro19 grams described in section 1902(e)(13)(A), information 

20 described in paragraph (2) or (3) of section 1137(a), vital 

21 records information about births in any State, and infor22 mation described in sections 453(i) and 1902(a)(25)(I)) 

23 is authorized to convey such data or information to a State 

24 agency administering a State plan under this title or title 

25 XXI, if— 


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1 ‘‘(1) such data or information are used only to 

2 establish or verify eligibility or provide coverage 

3 under this title or title XXI; and 

4 ‘‘(2) an interagency or other agreement, con5 sistent with standards developed by the Secretary, 

6 prevents the unauthorized use, disclosure, or modi7 fication of such data and otherwise meets applicable 

8 Federal requirements safeguarding privacy and data 

9 security. 

10 ‘‘(b) REQUIREMENTS FOR CONVEYANCE.—Data or 

11 information may be conveyed pursuant to this section only 

12 if the following requirements are met: 

13 ‘‘(1) The individual whose circumstances are 

14 described in the data or information (or such indi15 vidual’s parent, guardian, caretaker relative, or au16 thorized representative) has either provided advance 

17 consent to disclosure or has not objected to disclo18 sure after receiving advance notice of disclosure and 

19 a reasonable opportunity to object. 

20 ‘‘(2) Such data or information are used solely 

21 for the purposes of— 

22 ‘‘(A) identifying individuals who are eligi23 ble or potentially eligible for assistance under 

24 this title or title XXI and enrolling such indiVerDate Aug 31 2005 02:58 May 05, 2007 Jkt 059200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\H2147.IH H2147

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1 viduals in the State plans established under 

2 such titles; and 

3 ‘‘(B) verifying the eligibility of individuals 

4 for assistance under the State plans established 

5 under this title or title XXI. 

6 ‘‘(3) An interagency or other agreement, con7 sistent with standards developed by the Secretary— 

8 ‘‘(A) prevents the unauthorized use, disclo9 sure, or modification of such data and other10 wise meets applicable Federal requirements 

11 safeguarding privacy and data security; and 

12 ‘‘(B) requires the State agencies admin13 istering the State plans established under this 

14 title and title XXI to use the data and informa15 tion obtained under this section to seek to en16 roll individuals in such plans. 

17 ‘‘(c) CRIMINAL PENALTY.—A person described in the 

18 subsection (a) who publishes, divulges, discloses, or makes 

19 known in any manner, or to any extent not authorized by 

20 Federal law, any information obtained under this section 

21 shall be fined not more than $1,000 or imprisoned not 

22 more than 1 year, or both for each such unauthorized ac23 tivity. 

24 ‘‘(d) RULE OF CONSTRUCTION.—The limitations and 

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1 tion shall not be construed to prohibit the conveyance or 

2 disclosure of data or information otherwise permitted 

3 under Federal law (without regard to this section).’’. 

4 (2) CONFORMING AMENDMENT TO ASSURE AC5 CESS TO NATIONAL NEW HIRES DATABASE.—Section 

6 453(i)(1) of such Act (42 U.S.C. 653(i)(1)) is 

7 amended by striking ‘‘and programs funded under 

8 part A’’ and inserting ‘‘, programs funded under 

9 part A, and State plans approved under title XIX or 

10 XXI’’. 

11 (3) CONFORMING AMENDMENT TO PROVIDE

12 SCHIP PROGRAMS WITH ACCESS TO NATIONAL IN13 COME DATA.—Section 6103(l)(7)(D)(ii) of the Inter14 nal Revenue Code of 1986 is amended by inserting 

15 ‘‘or title XXI’’ after ‘‘title XIX’’. 

16 (4) CONFORMING AMENDMENT TO PROVIDE AC17 CESS TO DATA ABOUT ENROLLMENT IN INSURANCE

18 FOR PURPOSES OF EVALUATING APPLICATIONS AND

19 FOR SCHIP.—Section 1902(a)(25)(I)(i) of the Social 

20 Security Act (42 U.S.C. 1396a(a)(25)(I)(i)) is 

21 amended— 

22 (A) by inserting ‘‘(and, at State option, in23 dividuals who are potentially eligible or who 

24 apply)’’ after ‘‘with respect to individuals who 

25 are eligible’’; and 


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1 (B) by inserting ‘‘under this title (and, at 

2 State option, child health assistance under title 

3 XXI)’’ after ‘‘the State plan’’. 

4 SEC. 204. STATE OPTION TO EXPAND OR ADD COVERAGE 

5 OF CERTAIN PREGNANT WOMEN UNDER 

6 SCHIP. 

7 (a) SCHIP.— 

8 (1) COVERAGE.—Title XXI of the Social Secu9 rity Act (42 U.S.C. 1397aa et seq.) is amended by 

10 adding at the end the following new section: 

11 ‘‘SEC. 2111. OPTIONAL COVERAGE OF TARGETED LOW-IN12 COME PREGNANT WOMEN. 

13 ‘‘(a) OPTIONAL COVERAGE.—Notwithstanding any 

14 other provision of this title, a State may provide for cov15 erage, through an amendment to its State child health 

16 plan under section 2102, of pregnancy-related assistance 

17 for targeted low-income pregnant women in accordance 

18 with this section, but only if— 

19 ‘‘(1) the State has established an income eligi20 bility level— 

21 ‘‘(A) for pregnant women under subsection 

22 (a)(10)(A)(i)(III) or (l)(2)(A) of section 1902 

23 that is at least 185 percent of the poverty line; 

24 and 


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1 ‘‘(B) for children under this title that is at 

2 least 200 percent of the poverty line; and 

3 ‘‘(2) the State meets the requirement of section 

4 2105(i)(2) (relating to no waiting list for children). 

5 ‘‘(b) DEFINITIONS.—For purposes of this title: 

6 ‘‘(1) PREGNANCY-RELATED ASSISTANCE.—The 

7 term ‘pregnancy-related assistance’ has the meaning 

8 given the term child health assistance in section 

9 2110(a) as if any reference to targeted low-income 

10 children were a reference to targeted low-income 

11 pregnant women. 

12 ‘‘(2) TARGETED LOW-INCOME PREGNANT

13 WOMAN.—The term ‘targeted low-income pregnant 

14 woman’ means a woman— 

15 ‘‘(A) during pregnancy and through the 

16 end of the month in which the 60-day period 

17 (beginning on the last day of her pregnancy) 

18 ends; 

19 ‘‘(B) whose family income exceeds 185 per20 cent of the poverty level applicable to a family 

21 of the size involved, but does not exceed the in22 come eligibility level established under the State 

23 child health plan under this title for a targeted 

24 low-income child; and 


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1 ‘‘(C) who satisfies the requirements of 

2 paragraphs (1)(A), (1)(C), (2), and (3) of sec3 tion 2110(b). 

4 ‘‘(c) REFERENCES TO TERMS AND SPECIAL

5 RULES.—In the case of, and with respect to, a State pro6 viding for coverage of pregnancy-related assistance to tar7 geted low-income pregnant women under subsection (a), 

8 the following special rules apply: 

9 ‘‘(1) Any reference in this title (other than in 

10 subsection (b)) to a targeted low-income child is 

11 deemed to include a reference to a targeted low-in12 come pregnant woman. 

13 ‘‘(2) Any such reference to child health assist14 ance with respect to such women is deemed a ref15 erence to pregnancy-related assistance. 

16 ‘‘(3) Any such reference to a child is deemed a 

17 reference to a woman during pregnancy and the pe18 riod described in subsection (b)(2)(A). 

19 ‘‘(4) In applying section 2102(b)(3)(B), any 

20 reference to children found through screening to be 

21 eligible for medical assistance under the State med22 icaid plan under title XIX is deemed a reference to 

23 pregnant women. 

24 ‘‘(5) There shall be no exclusion of benefits for 

25 services described in subsection (b)(1) based on any 


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1 preexisting condition and no waiting period (includ2 ing any waiting period imposed to carry out section 

3 2102(b)(3)(C)) shall apply. 

4 ‘‘(6) In applying section 2103(e)(3)(B) in the 

5 case of a pregnant woman provided coverage under 

6 this section, the limitation on total annual aggregate 

7 cost-sharing shall be applied to such pregnant 

8 woman. 

9 ‘‘(7) In applying section 2104(i)— 

10 ‘‘(A) in the case of State which did not 

11 provide for coverage for pregnant women under 

12 this title (under a waiver or otherwise) during 

13 fiscal year 2007, the allotment amount other14 wise computed for the first fiscal year in which 

15 the State elects to provide coverage under this 

16 section shall be increased by an amount (deter17 mined by the Secretary) equal to the enhanced 

18 FMAP of the expenditures under this title for 

19 such coverage, based upon projected enrollment 

20 and per capita costs of such enrollment; and 

21 ‘‘(B) in the case of a State which provided 

22 for coverage of pregnant women under this title 

23 for the previous fiscal year— 

24 ‘‘(i) in applying paragraph (1)(B)(ii) 

25 of such section, there shall also be taken 


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1 into account (in an appropriate proportion) 

2 the percentage increase in births in the 

3 United States for the relevant period; and 

4 ‘‘(ii) in applying paragraph (1)(C), 

5 pregnant women (and per capita expendi6 tures for such women) shall be accounted 

7 for separately from children, but shall be 

8 included in the total amount of any allot9 ment adjustment under such paragraph. 

10 ‘‘(d) AUTOMATIC ENROLLMENT FOR CHILDREN

11 BORN TO WOMEN RECEIVING PREGNANCY-RELATED AS12 SISTANCE.—If a child is born to a targeted low-income 

13 pregnant woman who was receiving pregnancy-related as14 sistance under this section on the date of the child’s birth, 

15 the child shall be deemed to have applied for child health 

16 assistance under the State child health plan and to have 

17 been found eligible for such assistance under such plan 

18 or to have applied for medical assistance under title XIX 

19 and to have been found eligible for such assistance under 

20 such title, as appropriate, on the date of such birth and 

21 to remain eligible for such assistance until the child at22 tains 1 year of age. During the period in which a child 

23 is deemed under the preceding sentence to be eligible for 

24 child health or medical assistance, the child health or med25 ical assistance eligibility identification number of the 


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1 mother shall also serve as the identification number of the 

2 child, and all claims shall be submitted and paid under 

3 such number (unless the State issues a separate identifica4 tion number for the child before such period expires).’’. 

5 (2) NO COST-SHARING FOR PREGNANCY-RE6 LATED BENEFITS.—Section 2103(e)(2) of such Act 

7 (42 U.S.C. 1397cc(e)(2)) is amended— 

8 (A) in the heading, by inserting ‘‘OR PREG9 NANCY-RELATED SERVICES’’ after ‘‘PREVEN10 TIVE SERVICES’’; and 

11 (B) by inserting before the period at the 

12 end the following: ‘‘or for pregnancy-related 

13 services’’. 

14 (3) ADDITIONAL AMENDMENT.—Section 

15 2107(e)(1)(F) of such Act (42 U.S.C. 

16 1397gg(e)(1)(G)), as redesignated by section 202(b), 

17 is amended to read as follows: 

18 ‘‘(F) Sections 1920 and 1920A (relating to 

19 presumptive eligibility for pregnant women and 

20 children).’’. 

21 (b) AMENDMENTS TO MEDICAID.— 

22 (1) ELIGIBILITY OF ANEWBORN.—Section 

23 1902(e)(4) of such Act (42 U.S.C. 1396a(e)(4)) is 

24 amended in the first sentence by striking ‘‘so long 

25 as the child is a member of the woman’s household 


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1 and the woman remains (or would remain if preg2 nant) eligible for such assistance’’. 

3 (2) APPLICATION OF QUALIFIED ENTITIES TO

4 PRESUMPTIVE ELIGIBILITY FOR PREGNANT WOMEN

5 UNDER MEDICAID.—Section 1920(b) of such Act (42 

6 U.S.C. 1396r–1(b)) is amended by adding after 

7 paragraph (2) the following flush sentence: 

8 ‘‘The term ‘qualified provider’ includes a qualified entity, 

9 as defined in section 1920A(b)(3).’’. 

10 SEC. 205. OPTIONAL COVERAGE OF LEGAL IMMIGRANTS 

11 UNDER THE MEDICAID PROGRAM AND SCHIP. 

12 (a) MEDICAID PROGRAM.—Section 1903(v) of the 

13 Social Security Act (42 U.S.C. 1396b(v)) is amended— 

14 (1) in paragraph (1), by striking ‘‘paragraph 

15 (2)’’ and inserting ‘‘paragraphs (2) and (4)’’; and 

16 (2) by adding at the end the following new 

17 paragraph: 

18 ‘‘(4)(A) A State may elect (in a plan amendment 

19 under this title) to provide medical assistance under this 

20 title, notwithstanding sections 401(a), 402(b), 403, and 

21 421 of the Personal Responsibility and Work Opportunity 

22 Reconciliation Act of 1996, for aliens who are lawfully re23 siding in the United States (including battered aliens de24 scribed in section 431(c) of such Act) and who are otherVerDate Aug 31 2005 02:58 May 05, 2007 Jkt 059200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6201 E:\BILLS\H2147.IH H2147

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1 wise eligible for such assistance, within either or both of 

2 the following eligibility categories: 

3 ‘‘(i) PREGNANT WOMEN.—Women during preg4 nancy (and during the 60-day period beginning on 

5 the last day of the pregnancy). 

6 ‘‘(ii) CHILDREN.—Individuals under 21 years of 

7 age, including optional targeted low-income children 

8 described in section 1905(u)(2)(B). 

9 ‘‘(B) In the case of a State that has elected to provide 

10 medical assistance to a category of aliens under subpara11 graph (A), no debt shall accrue under an affidavit of sup12 port against any sponsor of such an alien on the basis 

13 of provision of assistance to such category and the cost 

14 of such assistance shall not be considered as an unreim15 bursed cost.’’. 

16 (b) SCHIP.—Section 2107(e)(1) of such Act (42 

17 U.S.C. 1397gg(e)(1)), as amended by sections 202(b) and 

18 204(a)(3), is amended by redesignating subparagraphs 

19 (D) through (F) as subparagraph (E) through (G), respec20 tively, and by inserting after subparagraph (C) the fol21 lowing new subparagraph: 

22 ‘‘(D) Section 1903(v)(4) (relating to op23 tional coverage of categories of lawfully residing 

24 immigrant children), but only if the State has 


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1 elected to apply such section to the category of 

2 children under title XIX.’’. 

3 (c) EFFECTIVE DATE.—The amendments made by 

4 this section take effect on October 1, 2007, and apply to 

5 medical assistance and child health assistance furnished 

6 on or after such date. 

7 (d) CONSTRUCTION.—Nothing in this section shall be 

8 construed as affecting eligibility of aliens who are not law9 fully residing in the United States to benefits under the 

10 Medicaid program under title XIX of the Social Security 

11 Act or under the State children’s health insurance pro12 gram (SCHIP) under title XXI of such Act. 

13 SEC. 206. AUTHORIZING ADJUSTMENT OF SCHIP ALLOT14 MENT DUE TO INCREASED OUTREACH. 

15 (a) IN GENERAL.—Section 2104 of the Social Secu16 rity Act (42 U.S.C. 1397dd), as amended by section 101, 

17 is further amended by adding at the end the following new 

18 subsection: 

19 ‘‘(j) AUTHORIZING ALLOTMENT ADJUSTMENT DUE

20 TO INCREASED OUTREACH.— 

21 ‘‘(1) IN GENERAL.—Notwithstanding the pre22 vious provisions of this section, if the Secretary de23 termines that— 

24 ‘‘(A) a State has an increase in the aver25 age number of children enrolled under its State 


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1 child health plan in a fiscal year that exceeds 

2 the enrollment of children projected under para3 graph (2) for the State for such fiscal year, and 

4 ‘‘(B) the total Federal expenditures under 

5 the State child health plan (or waiver) under 

6 this title exceeds the amount of the allotment 

7 made available to the State for the fiscal year, 

8 the Secretary shall increase the allotment under this 

9 section for the State for the fiscal year by the 

10 amount specified in paragraph (3). There are hereby 

11 appropriated, out of any money in the Treasury not 

12 otherwise appropriated, such sums as may be nec13 essary to provide for such increase in allotment. 

14 ‘‘(2) PROJECTED ENROLLMENT OF CHIL15 DREN.—The projected enrollment of children for a 

16 State under this paragraph for a fiscal year is equal 

17 to the average number of children enrolled under the 

18 State child health plan in fiscal year 2007 increased, 

19 for each subsequent fiscal year through the fiscal 

20 year involved, by a factor equal to the population 

21 growth of children in the State for such fiscal year, 

22 as projected by the Secretary before the beginning of 

23 the fiscal year involved. 

24 ‘‘(3) AMOUNT OF ALLOTMENT INCREASE.— 


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1 ‘‘(A) IN GENERAL.—Subject to subpara2 graph (B), the amount of the allotment increase 

3 under this subsection for a State for a fiscal 

4 year shall be an amount equal to the product 

5 of— 

6 ‘‘(i) the number by which the average 

7 number of children enrolled under the 

8 State child health plan in the fiscal year 

9 exceeds the enrollment of children pro10 jected under paragraph (2) for such State 

11 for such fiscal year; and 

12 ‘‘(ii) the per capita expenditures for 

13 children under the State child health plan 

14 for the previous year, increased by the av15 erage annual rate of increase (for the three 

16 previous fiscal years) in the amount of 

17 such per capita expenditures. 

18 The amount of the allotment increase under 

19 this subsection shall not be subject to adminis20 trative or judicial review. 

21 ‘‘(B) LIMITATION.— 

22 ‘‘(i) IN GENERAL.—Subject to clause 

23 (ii), in no case shall the sum of the allot24 ment increases for all States under this 

25 subsection for a fiscal year exceed an 


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1 amount equal to 20 percent of the total 

2 Federal payments to all of the States oth3 erwise made under this title for the fiscal 

4 year. If such sum exceeds such amount, 

5 subject to clause (ii), the allotment in6 crease for each State under this subsection 

7 for the fiscal year shall be reduced in a pro 

8 rata manner in order that such sum does 

9 not exceed such amount. 

10 ‘‘(ii) CONGRESSIONAL APPROVAL OF

11 ADDITIONAL AMOUNTS.—If the Secretary 

12 estimates that the allotment increases that 

13 should be provided under this subsection, 

14 but for clause (i), would exceed the limita15 tion established under such clause, the 

16 Secretary shall submit to Congress a re17 quest for supplemental appropriations for 

18 the purpose of meeting such shortfall. 

19 ‘‘(4) CLARIFICATION.—An adjustment in an al20 lotment shall not be made under this subsection due 

21 to excess State expenditures resulting from a growth 

22 in per capita costs, increased reimbursement to pro23 viders, or other factors not directly related to out24 reach to eligible, but previously unenrolled chil25 dren.’’. 


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1 (b) EFFECTIVE DATE.—The amendments made by 

2 subsection (a) shall take effect beginning with allotments 

3 for fiscal year 2008. 

4 SEC. 207. GRANTS TO PROMOTE INNOVATIVE OUTREACH 

5 AND ENROLLMENT UNDER MEDICAID AND 

6 SCHIP. 

7 Title XXI of the Social Security Act (42 U.S.C. 

8 1397aa et seq.), as amended by section 204(a), is amend9 ed by adding at the end the following: 

10 ‘‘SEC. 2112. EXPANDED OUTREACH ACTIVITIES THROUGH 

11 GRANTS TO CONDUCT INNOVATIVE OUT12 REACH AND ENROLLMENT EFFORTS. 

13 ‘‘(a) IN GENERAL.—The Secretary shall award 

14 grants to eligible entities to— 

15 ‘‘(1) conduct innovative outreach and enroll16 ment efforts that are designed to increase the enroll17 ment and participation of eligible children under this 

18 title and title XIX; and 

19 ‘‘(2) promote understanding of the importance 

20 of health insurance coverage for prenatal care and 

21 children. ‘ 

22 ‘‘(b) PRIORITY FOR AWARD OF GRANTS.— 

23 ‘‘(1) IN GENERAL.—In making grants under 

24 subsection (a), the Secretary shall give priority to— 


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1 ‘‘(A) eligible entities that propose to target 

2 geographic areas with high rates of— 

3 ‘‘(i) eligible but unenrolled children, 

4 including such children who reside in rural 

5 areas; or 

6 ‘‘(ii) racial and ethnic minorities and 

7 health disparity populations, including 

8 those proposals that address cultural and 

9 linguistic barriers to enrollment; and 

10 ‘‘(B) eligible entities that plan to engage in 

11 outreach efforts with respect to individuals de12 scribed in subparagraph (A) and that are— 

13 ‘‘(i) Federal health safety net organi14 zations; or 

15 ‘‘(ii) faith-based organizations or con16 sortia. 

17 ‘‘(c) APPLICATION.—An eligible entity that desires to 

18 receive a grant under subsection (a) shall submit an appli19 cation to the Secretary in such form and manner, and con20 taining such information, as the Secretary may decide. 

21 Such application shall include— 

22 ‘‘(1) quality and outcomes performance meas23 ures to evaluate the effectiveness of activities funded 

24 by a grant awarded under this section to ensure that 

25 the activities are meeting their goals; and 


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1 ‘‘(2) an assurance that the entity shall— 

2 ‘‘(A) conduct an assessment of the effec3 tiveness of such activities against such perform4 ance measures; 

5 ‘‘(B) cooperate with the collection and re6 porting of enrollment data and other informa7 tion determined as a result of conducting such 

8 assessments to the Secretary, in such form and 

9 manner as the Secretary shall require; and 

10 ‘‘(C) conduct work under the grant in con11 junction with the States involved. 

12 ‘‘(d) DISSEMINATION OF ENROLLMENT DATA AND

13 INFORMATION DETERMINED FROM EFFECTIVENESS AS14 SESSMENTS; ANNUAL REPORT.—The Secretary shall— 

15 ‘‘(1) disseminate to eligible entities and make 

16 publicly available the enrollment data and informa17 tion collected and reported in accordance with sub18 section (c)(2)(B); and 

19 ‘‘(2) submit an annual report to Congress on 

20 the outreach activities funded by grants awarded 

21 under this section. 

22 ‘‘(e) SUPPLEMENT, NOT SUPPLANT.—Federal funds 

23 awarded under this section shall be used to supplement, 

24 not supplant, non-Federal funds that are otherwise avail25 able for activities funded under this section. 


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1 ‘‘(f) DEFINITIONS.—In this section: 

2 ‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible en3 tity’ means any of the following: 

4 ‘‘(A) A local government. 

5 ‘‘(B) A Federal health safety net organiza6 tion. 

7 ‘‘(C) A national, local, or community-based 

8 public or nonprofit private organization, includ9 ing community health workers. 

10 ‘‘(D) A faith-based organization or con11 sortia, to the extent that a grant awarded to 

12 such an entity is consistent with the require13 ments of section 1955 of the Public Health 

14 Service Act (42 U.S.C. 300x–65) relating to a 

15 grant award to non-governmental entities. 

16 ‘‘(E) An elementary or secondary school. 

17 ‘‘(2) FEDERAL HEALTH SAFETY NET ORGANI18 ZATION.—The term ‘Federal health safety net orga19 nization’ means— 

20 ‘‘(A) an Indian tribe, tribal organization, 

21 or an urban Indian organization receiving funds 

22 under title V of the Indian Health Care Im23 provement Act (25 U.S.C. 1651 et seq.), or an 

24 Indian Health Service provider; 


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1 ‘‘(B) a Federally-qualified health center 

2 (as defined in section 1905(l)(2)(B)); 

3 ‘‘(C) a hospital defined as a dispropor4 tionate share hospital for purposes of section 

5 1923; 

6 ‘‘(D) a covered entity described in section 

7 340B(a)(4) of the Public Health Service Act 

8 (42 U.S.C. 256b(a)(4)); and 

9 ‘‘(E) any other entity or a consortium that 

10 serves children under a federally-funded pro11 gram, including the special supplemental nutri12 tion program for women, infants, and children 

13 (WIC) established under section 17 of the Child 

14 Nutrition Act of 1966 (42 U.S.C. 1786), the 

15 head start and early head start programs under 

16 the Head Start Act (42 U.S.C. 9801 et seq.), 

17 the school lunch program established under the 

18 Richard B. Russell National School Lunch Act, 

19 and an elementary or secondary school. 

20 ‘‘(3) INDIANS; INDIAN TRIBE; TRIBAL ORGANI21 ZATION; URBAN INDIAN ORGANIZATION.—The terms 

22 ‘Indian’, ‘Indian tribe’, ‘tribal organization’, and 

23 ‘urban Indian organization’ have the meanings given 

24 such terms in section 4 of the Indian Health Care 

25 Improvement Act (25 U.S.C. 1603). 


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1 ‘‘(g) APPROPRIATION.—There is appropriated, out of 

2 any money in the Treasury not otherwise appropriated, 

3 $50,000,000 for each of fiscal years 2008 through 2012 

4 for the purpose of awarding grants under this section. 

5 Amounts appropriated and paid under the authority of 

6 this section shall be in addition to amounts appropriated 

7 under section 2104 and paid to States in accordance with 

8 section 2105, including with respect to expenditures for 

9 outreach activities in accordance with subsection 

10 (a)(1)(D)(iii) of such section.’’. 

11 SEC. 208. MODEL OF INTERSTATE COORDINATED ENROLL12 MENT AND COVERAGE PROCESS. 

13 In order to assure continuity of coverage of low-in14 come children under the Medicaid program and the State 

15 Children’s Health Insurance Program (SCHIP), the Sec16 retary of Health and Human Services, in consultation with 

17 State Medicaid and SCHIP directors, shall develop and 

18 disseminate a model process for the coordination of the 

19 enrollment and coverage under such programs of children 

20 who, because of migration of families, emergency evacu21 ations, educational needs, or otherwise, frequently change 

22 their State of residency or otherwise are temporarily 

23 present outside of the State of their residency. 


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1 SEC. 209. AUTHORITY FOR QUALIFYING STATES TO USE 

2 PORTION OF SCHIP ALLOTMENT FOR ANY 

3 FISCAL YEAR FOR CERTAIN MEDICAID EX4 PENDITURES. 

5 Section 2105(g)(1)(A) of the Social Security Act (42 

6 U.S.C. 1397ee(g)(1)(A)), as amended by section 201(b) 

7 of the National Institutes of Health Reform Act of 2006 

8 (Public Law 109–482) is amended by striking ‘‘fiscal year 

9 1998, 1999, 2000, 2001, 2004, 2005, 2006, or 2007’’ and 

10 inserting ‘‘a fiscal year’’. 

11 SEC. 210. APPLICATION OF MEDICAID OUTREACH PROCE12 DURES TO ALL PREGNANT WOMEN AND CHIL13 DREN. 

14 (a) IN GENERAL.—Section 1902(a)(55) of the Social 

15 Security Act (42 U.S.C. 1396a(a)(55)) is amended by 

16 striking ‘‘individuals for medical assistance under sub17 section (a)(10)(A)(i)(IV), (a)(10)(A)(i)(VI), 

18 (a)(10)(A)(i)(VII), or (a)(10)(A)(ii)(IX)’’ and inserting 

19 ‘‘child and pregnant women for medical assistance (includ20 ing under clauses (i)(IV), (i)(VI), (i)(VII), and (ii)(IX) of 

21 paragraph (10)(A))’’. 

22 (b) EFFECTIVE DATE.— 

23 (1) IN GENERAL.— 

24 (2) EXCEPTION FOR STATE LEGISLATION.—In 

25 the case of a State plan under title XIX of the So26 cial Security Act, which the Secretary of Health and 


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1 Human Services determines requires State legisla2 tion in order for the plan to meet the additional re3 quirements imposed by the amendment made by 

4 subsection (a), the State plan shall not be regarded 

5 as failing to comply with the requirements of such 

6 Act solely on the basis of its failure to meet these 

7 additional requirements before the first day of the 

8 first calendar quarter beginning after the close of 

9 the first regular session of the State legislature that 

10 begins after the date of enactment of this Act. For 

11 purposes of the previous sentence, in the case of a 

12 State that has a 2-year legislative session, each year 

13 of the session shall be considered to be a separate 

14 regular session of the State legislature. 

15 SEC. 211. NO IMPACT ON SECTION 1115 WAIVERS. 

16 Nothing in this Act shall be construed to affect waiv17 ers regarding State flexibility on eligibility previously ap18 proved by the Secretary of Health and Human Services 

19 under section 1115 of the Social Security Act (42 U.S.C. 

20 1315). 

21 SEC. 212. ELIMINATION OF COUNTING MEDICAID CHILD 

22 PRESUMPTIVE ELIGIBILITY COSTS AGAINST 

23 TITLE XXI ALLOTMENT. 

24 Section 2105(a)(1) of the Social Security Act (42 

25 U.S.C. 1397ee(a)(1)) is amended— 


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1 (1) in the matter preceding subparagraph (A), 

2 by striking ‘‘(or, in the case of expenditures de3 scribed in subparagraph (B), the Federal medical 

4 assistance percentage (as defined in the first sen5 tence of section 1905(b)))’’; and 

6 (2) by amending subparagraph (B) to read as 

7 follows: 

8 ‘‘(B) [reserved]’’. 

9 SEC. 213. PROHIBITING LIMITATIONS ON ENROLLMENT. 

10 (a) IN GENERAL.—Section 2102(b)(3)(B) of the So11 cial Security Act (42 U.S.C. 1397bb(b)(3)(B)) is amend12 ed— 

13 (1) by striking ‘‘and’’ at the end of clause (i); 

14 (2) by striking the period at the end of clause 

15 (ii) and inserting ‘‘; and’’; and 

16 (3) by adding at the end the following new 

17 clause: 

18 ‘‘(iii) shall not impose, with respect to 

19 enrollment of targeted low-income children 

20 under the State child health plan, any en21 rollment cap or other numerical limitation 

22 on enrollment, any waiting list, any proce23 dures designed to delay the consideration 

24 of applications for enrollment, or similar 

25 limitation with respect to enrollment.’’. 


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1 (b) EFFECTIVE DATE.—The amendments made by 

2 subsection (a) shall apply to State child health plans as 

3 of October 1, 2007. 

4 TITLE III—HEALTHY SAVINGS 

5 TAX CREDIT 

6 SEC. 301. HEALTHY SAVINGS TAX CREDIT. 

7 (a) IN GENERAL.—Subpart C of part IV of sub8 chapter A of chapter 1 of the Internal Revenue Code of 

9 1986 (relating to refundable personal credits) is amended 

10 by redesignating section 36 as section 37 and by inserting 

11 after section 35 the following new section: 

12 ‘‘SEC. 36. HEALTH INSURANCE FOR QUALIFYING CHIL13 DREN. 

14 ‘‘(a) IN GENERAL.—In the case of an individual, 

15 there shall be allowed as a credit against the tax imposed 

16 by subtitle A an amount equal to the applicable percentage 

17 of the amount paid by the taxpayer for coverage of quali18 fying children of the taxpayer under qualified health insur19 ance for eligible coverage months beginning in the taxable 

20 year. 

21 ‘‘(b) ELIGIBLE COVERAGE MONTH.—For purposes of 

22 this section, the term ‘eligible coverage month’ means, 

23 with respect to any qualifying child of the taxpayer, any 

24 month with respect to which the designated State agency 


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1 has certified that, as of the first day of such month, such 

2 child— 

3 ‘‘(1) is covered by qualified health insurance, 

4 ‘‘(2) does not have access to other specified cov5 erage for such month (as determined under sub6 section (f)), and 

7 ‘‘(3) is not imprisoned under Federal, State, or 

8 local authority. 

9 ‘‘(c) APPLICABLE PERCENTAGE.— 

10 ‘‘(1) IN GENERAL.—For purposes of this sec11 tion, the term ‘applicable percentage’ means the per12 centage determined in accordance with the following 

13 table: 

In the case of a taxpayer whose adjusted gross income for the taxable year is: The applicable percentage 

is: 

200 percent of the poverty line or less ..................... 0 percent

More than 200 percent, but not more than 225 percent, of the poverty line.75 percent

More than 225 percent, but not more than 250 percent, of the poverty line.65 percent

More than 250 percent, but not more than 300 percent, of the poverty line.55 percent

More than 300 percent, but not more than 350 percent, of the poverty line.50 percent

More than 350 percent of the poverty line ............... 0 percent. 

14 ‘‘(2) POVERTY LINE.—For purposes of para15 graph (1), the term ‘poverty line’ means the income 

16 official poverty line (as defined by the Office of Man17 agement and Budget, and revised annually in ac18 cordance with section 673(2) of the Community 


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1 Services Block Grant Act (42 U.S.C. 9902(2)) appli2 cable to a family of the size involved. 

3 ‘‘(d) QUALIFYING CHILD.—For purposes of this sec4 tion, the term ‘qualifying child’ means, with respect to any 

5 taxpayer, any qualifying child of the taxpayer (as defined 

6 in section 152(c)). 

7 ‘‘(e) QUALIFIED HEALTH INSURANCE.—For pur8 poses of this section— 

9 ‘‘(1) IN GENERAL.—The term ‘qualified health 

10 insurance’ means, with respect to any qualifying 

11 child of the taxpayer— 

12 ‘‘(A) coverage under any insurance consti13 tuting medical care which is certified by the 

14 designated State agency as being— 

15 ‘‘(i) provided under a group health 

16 plan (as defined in section 5000(b)(1)), 

17 and 

18 ‘‘(ii) at least actuarially equivalent in 

19 benefits coverage to the plan described in 

20 paragraph (2), or 

21 ‘‘(B) in the case of a qualifying child who 

22 is certified by the designated State agency as 

23 not eligible for coverage under any insurance 

24 described in subparagraph (A), coverage under 

25 any of the following plans if such coverage has 


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1 been certified by the designated State agency as 

2 being at least actuarially equivalent in benefits 

3 coverage to the plan described in paragraph (2): 

4 ‘‘(i) COVERAGE OFFERED THROUGH

5 HMO.—The health insurance coverage plan 

6 that— 

7 ‘‘(I) is offered by a health main8 tenance organization (as defined in 

9 section 2791(b)(3) of the Public 

10 Health Service Act), and 

11 ‘‘(II) has the largest insured 

12 commercial, nonmedicaid enrollment 

13 of covered lives of such coverage plans 

14 offered by such a health maintenance 

15 organization in the State. 

16 ‘‘(ii) STATE EMPLOYEE COVERAGE.— 

17 The health insurance plan that is offered 

18 to State employees and has the largest en19 rollment of covered lives of any such plan. 

20 ‘‘(iii) SCHIP COVERAGE.—Coverage 

21 provided under the State plan approved 

22 under the State children’s health insurance 

23 program under title XXI of Social Security 

24 Act (without regard to coverage provided 


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1 under a waiver of the requirements of such 

2 program). 

3 ‘‘(iv) STATE CERTIFIED ACTUARIALLY

4 EQUIVALENT COVERAGE.—A State-based 

5 health insurance program. 

6 ‘‘(2) FEHBP ACTUARIALLY EQUIVALENT

7 HEALTH BENEFITS COVERAGE.— 

8 ‘‘(A) IN GENERAL.—The plan described in 

9 and offered under chapter 89 of title 5, United 

10 States Code with the highest number of enroll11 ees under such section for the year preceding 

12 the year in which the coverage described in 

13 paragraph (1) is provided. 

14 ‘‘(B) APPLICATION OF BENCHMARK

15 STANDARD.—Coverage is actuarially equivalent 

16 to benefits coverage under the plan described in 

17 subparagraph (A) if such coverage covers all 

18 items and services offered by the benchmark 

19 plan, with out-of-pocket cost-sharing for such 

20 items and services that is not greater than 

21 under the benchmark plan. 

22 ‘‘(3) INSURANCE WHICH COVERS OTHER INDI23 VIDUALS.—In the case of any contract for qualified 

24 health insurance under which amounts are payable 

25 for coverage of any individual other than one or 


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1 more qualifying children, the amount treated as paid 

2 for coverage of qualifying children under such insur3 ance shall be the greater of— 

4 ‘‘(A) the amount which would be so treated 

5 under rules similar to the rules of section 

6 213(d)(6), or 

7 ‘‘(B) 30 percent of the amounts payable 

8 for coverage of all individuals covered under the 

9 contract under qualified health insurance. 

10 ‘‘(4) ONLY ONE POLICY TAKEN INTO ACCOUNT

11 PER CHILD.—With respect to any qualifying child 

12 for any period, coverage under not more than one 

13 contract for qualified health insurance may be taken 

14 into account under subsection (a). 

15 ‘‘(5) EXCEPTION.—The term ‘qualified health 

16 insurance’ shall not include— 

17 ‘‘(A) a flexible spending or similar ar18 rangement, and 

19 ‘‘(B) any insurance if substantially all of 

20 its coverage is of excepted benefits described in 

21 section 9832(c). 

22 ‘‘(6) OTHER REQUIREMENTS.—The term ‘quali23 fied health insurance’shall not include any insurance 

24 unless such insurance meets the following require25 ments: 


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1 ‘‘(A) GROUP HEALTH PLAN REQUIRE2 MENTS.—The health benefits coverage provided 

3 meets the requirements applicable to a group 

4 health plan under chapter 100 of this title, part 

5 7 of subtitle B of title I of the Employee Re6 tirement Income Security Act of 1974, and 

7 State law. 

8 ‘‘(B) GUARANTEED ISSUE AND RENEW9 ABLE.—The arrangement does not deny cov10 erage (including renewal of coverage) with re11 spect to any qualifying child on the basis of 

12 health status of such qualifying child or any 

13 other factor, condition or requirement. 

14 ‘‘(C) NO PREEXISTING CONDITION EXCLU15 SION.—The arrangement does not permit a pre16 existing condition exclusion as defined under 

17 section 9801(b)(1). 

18 ‘‘(D) NO UNDERWRITING; COMMUNITY19 RATED PREMIUMS.— 

20 ‘‘(i) UNDERWRITING.—Subject to sub21 paragraph (B), the arrangement does not 

22 permit underwriting, through a preexisting 

23 condition limitation, differential benefits, 

24 or different premium levels, or otherwise, 


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1 with respect to such coverage for any 

2 qualifying child. 

3 ‘‘(ii) COMMUNITY-RATED PRE4 MIUMS.—The premiums charged for such 

5 coverage are community-rated for individ6 uals without regard to health status. 

7 ‘‘(E) NO RIDERS.—The arrangement does 

8 not permit riders to the health benefits cov9 erage. 

10 ‘‘(f) OTHER SPECIFIED COVERAGE.—For purposes of 

11 this section, an individual has access to other specified 

12 coverage for any month if, as of the first day of such 

13 month— 

14 ‘‘(1) MEDICARE, MEDICAID, AND SCHIP.—Such 

15 individual— 

16 ‘‘(A) is entitle to benefits under part A of 

17 title XVIII of the Social Security Act or is en18 rolled under part B of such title, or 

19 ‘‘(B) is eligible to participate in any pro20 gram under title XIX or XXI of such Act 

21 (other than under section 1928 of such Act). 

22 ‘‘(2) CERTAIN OTHER COVERAGE.—Such indi23 vidual— 


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1 ‘‘(A) is enrolled in a health benefits plan 

2 under chapter 89 of title 5, United States Code, 

3 or 

4 ‘‘(B) is entitle to receive benefits under 

5 chapter 55 of title 10, United States Code. 

6 ‘‘(g) DESIGNATED STATE AGENCY.—For purposes of 

7 this section, the term ‘designated State agency’ means, 

8 with respect to any State, the agency responsible for ad9 ministering the State children’s health insurance program 

10 under title XXI of Social Security Act in such State. For 

11 purposes of carrying out any responsibility under this sec12 tion, such agency may utilize eligibility procedures under 

13 title XIX or XXI of such Act to the extent not inconsistent 

14 with this section. 

15 ‘‘(h) SPECIAL RULES.— 

16 ‘‘(1) COORDINATION WITH ADVANCE PAY17 MENT.—With respect to any taxable year, the 

18 amount which would (but for this subsection) be al19 lowed as a credit under subsection (a) shall be re20 duced (but not below zero) by the aggregate amount 

21 paid on behalf of such taxpayer under section 7529 

22 for such taxable year. 

23 ‘‘(2) COORDINATION WITH OTHER HEALTH IN24 SURANCE CREDIT.—Amounts taken into account 


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1 under subsection (a) shall not be taken into account 

2 under section 35(a). 

3 ‘‘(3) APPLICATION OF OTHER RULES.—Rules 

4 similar to the rules of paragraphs (2), (3), (4), (8), 

5 and (9) of section 35(g) shall apply for purposes of 

6 this section.’’. 

7 (b) ADVANCE PAYMENT OF CREDIT.—Chapter 77 of 

8 such Code (relating to miscellaneous provisions) is amend9 ed by adding at the end the following new section: 

10 ‘‘SEC. 7529. ADVANCE PAYMENT OF CREDIT FOR HEALTH 

11 INSURANCE FOR QUALIFYING CHILDREN. 

12 ‘‘The Secretary shall establish a program for making 

13 payments to providers of qualified health insurance (as de14 fined in section 36) on behalf of taxpayers eligible for the 

15 credit under section 36. Except as otherwise provided by 

16 the Secretary, such payments shall be made on the basis 

17 of the adjusted gross income of the taxpayer for the pre18 ceding taxable year.’’. 

19 (c) DISCLOSURE OF RETURN INFORMATION FOR

20 PURPOSES OF ADVANCE PAYMENT OF CREDIT AS PRE21 MIUMS FOR HEALTH INSURANCE FOR QUALIFYING CHIL22 DREN.— 

23 (1) IN GENERAL.—Subsection (l) of section 

24 6103 of such Code is amended by adding at the end 

25 the following new paragraph: 


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1 ‘‘(21) DISCLOSURE OF RETURN INFORMATION

2 FOR PURPOSES OF ADVANCE PAYMENT OF CREDIT

3 AS PREMIUMS FOR HEALTH INSURANCE FOR QUALI4 FYING CHILDREN.—The Secretary may, on behalf of 

5 taxpayers eligible for the credit under section 36, 

6 disclose to a provider of qualified health insurance 

7 (as defined in such section), and persons acting on 

8 behalf of such provider, return information with re9 spect to any such taxpayer only to the extent nec10 essary (as prescribed by regulations issued by the 

11 Secretary) to carry out the program established by 

12 section 7529 (relating to advance payment of credit 

13 as premium payment for health insurance for quali14 fying children).’’. 

15 (2) CONFIDENTIALITY OF INFORMATION.— 

16 Paragraph (3) of section 6103(a) of such Code is 

17 amended by striking ‘‘or (20)’’ and inserting ‘‘(20), 

18 or (21)’’. 

19 (3) UNAUTHORIZED DISCLOSURE.—Paragraph 

20 (2) of section 7213(a) of such Code is amended by 

21 striking ‘‘or (20)’’ and inserting ‘‘(20), or (21)’’. 

22 (d) INFORMATION REPORTING.— 

23 (1) IN GENERAL.—Subpart B of part III of 

24 subchapter A of chapter 61 of such Code (relating 

25 to information concerning transactions with other 


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1 persons) is amended by adding at the end the fol2 lowing new section: 

3 ‘‘SEC. 6050W. RETURNS RELATING TO CREDIT FOR HEALTH 

4 INSURANCE FOR QUALIFYING CHILDREN. 

5 ‘‘(a) REQUIREMENT OF REPORTING.—Every person 

6 who is entitled to receive payments for any month of any 

7 calendar year under section 7529 (relating to advance pay8 ment of credit as premium payment for qualified health 

9 insurance) with respect to any individual shall, at such 

10 time as the Secretary may prescribe, make the return de11 scribed in subsection (b) with respect to each such indi12 vidual. 

13 ‘‘(b) FORM AND MANNER OF RETURNS.—A return 

14 is described in this subsection if such return— 

15 ‘‘(1) is in such form as the Secretary may pre16 scribe, and 

17 ‘‘(2) contains— 

18 ‘‘(A) the name, address, and TIN of each 

19 individual referred to in subsection (a), 

20 ‘‘(B) the number of months for which 

21 amounts were entitled to be received with re22 spect to such individual under section 7529 (re23 lating to advance payment of credit as premium 

24 payment for health insurance for qualifying 

25 children), 


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1 ‘‘(C) the amount entitled to be received for 

2 each such month, and 

3 ‘‘(D) such other information as the Sec4 retary may prescribe. 

5 ‘‘(c) STATEMENTS TO BE FURNISHED TO INDIVID6 UALS WITH RESPECT TO WHOM INFORMATION IS RE7 QUIRED.—Every person required to make a return under 

8 subsection (a) shall furnish to each individual whose name 

9 is required to be set forth in such return a written state10 ment showing— 

11 ‘‘(1) the name and address of the person re12 quired to make such return and the phone number 

13 of the information contact for such person, and 

14 ‘‘(2) the information required to be shown on 

15 the return with respect to such individual. 

16 The written statement required under the preceding sen17 tence shall be furnished on or before January 31 of the 

18 year following the calendar year for which the return 

19 under subsection (a) is required to be made.’’. 

20 (2) ASSESSABLE PENALTIES.— 

21 (A) Subparagraph (B) of section 

22 6724(d)(1) of such Code (relating to defini23 tions) is amended by striking ‘‘or’’ at the end 

24 of clause (xix), by striking ‘‘and’’ at the end of 


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1 clause (xx) and inserting ‘‘or’’, and by inserting 

2 after clause (xx) the following new clause: 

3 ‘‘(xxi) section 6050W (relating to re4 turns relating to credit for health insur5 ance for qualifying children), and’’. 

6 (B) Paragraph (2) of section 6724(d) of 

7 such Code is amended by striking ‘‘or’’ at the 

8 end of subparagraph (BB), by striking the pe9 riod at the end of subparagraph (CC) and in10 serting ‘‘, or’’, and by adding after subpara11 graph (CC) the following new subparagraph: 

12 ‘‘(DD) section 6050W (relating to returns 

13 relating to credit for health insurance for quali14 fying children).’’. 

15 (e) CONFORMING AMENDMENTS.— 

16 (1) Paragraph (2) of section 1324(b) of title 

17 31, United States Code, is amended by inserting ‘‘or 

18 36’’ after ‘‘section 35’’. 

19 (2) The table of sections for subpart C of part 

20 IV of subchapter A of chapter 1 of the Internal Rev21 enue Code of 1986 is amended by redesignating the 

22 item relating to section 36 as an item relating to 

23 section 37 and by inserting after the item relating 

24 to section 35 the following new item: 

‘‘Sec. 36. Health insurance for qualifying children.’’. 


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1 (3) The table of sections for subpart B of part 

2 III of subchapter A of chapter 61 of such Code is 

3 amended by adding at the end the following new 

4 item: 

‘‘Sec. 6050W. Returns relating to credit for health insurance for qualifying 

children.’’. 

5 (4) The table of sections for chapter 77 of such 

6 Code is amended by adding at the end the following 

7 new item: 

‘‘Sec. 7529. Advance payment of credit for health insurance of qualifying children.’’. 

8 (f) EFFECTIVE DATE.—The amendments made by 

9 this section shall apply to taxable years beginning after 

10 December 31, 2008. 

11 (g) REIMBURSEMENT FOR ADMINISTRATIVE COSTS

12 INCURRED IN DETERMINING ELIGIBILITY FOR CREDIT.— 

13 (1) IN GENERAL.—The Secretary of Health and 

14 Human Services shall reimburse States for all rea15 sonable administrative costs incurred in making eli16 gibility determinations in accordance with section 36 

17 of the Internal Revenue Code of 1986 (as added by 

18 subsection (a)). Such reimbursement shall not apply 

19 to State costs incurred under the State children’s 

20 health insurance programs or Medicaid. 

21 (2) APPROPRIATION.—Out of any money in the 

22 Treasury of the United States not otherwise approVerDate Aug 31 2005 02:58 May 05, 2007 Jkt 059200 PO 00000 Frm 00064 Fmt 6652 Sfmt 6201 E:\BILLS\H2147.IH H2147

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1 priated, there are appropriated such sums as may be 

2 necessary to carry out this subsection. 

3 TITLE IV—BROKER REPORTING 

4 OF CUSTOMER’S BASIS IN SE5 CURITIES TRANSACTIONS 

6 SEC. 401. BROKER REPORTING OF CUSTOMER’S BASIS IN 

7 SECURITIES TRANSACTIONS. 

8 (a) IN GENERAL.—Section 6045 of the Internal Rev9 enue Code of 1986 (relating to returns of brokers) is 

10 amended by adding at the end the following new sub11 section: 

12 ‘‘(g) ADDITIONAL INFORMATION REQUIRED IN THE

13 CASE OF SECURITIES TRANSACTIONS.— 

14 ‘‘(1) IN GENERAL.—If a broker is otherwise re15 quired to make a return under subsection (a) with 

16 respect to any applicable security, the broker shall 

17 include in such return the information described in 

18 paragraph (2). 

19 ‘‘(2) ADDITIONAL INFORMATION REQUIRED.— 

20 ‘‘(A) IN GENERAL.—The information re21 quired under paragraph (1) to be shown on a 

22 return with respect to an applicable security of 

23 a customer shall include for each reported ap24 plicable security the customer’s adjusted basis 

25 in such security. 


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1 ‘‘(B) EXEMPTION FROM REQUIREMENT.— 

2 The Secretary shall issue such regulations or 

3 guidance as necessary concerning the applica4 tion of the requirement under subparagraph (A) 

5 in cases in which a broker in making a return 

6 does not have sufficient information to meet 

7 such requirement with respect to the reported 

8 applicable security. Such regulations or guid9 ance may— 

10 ‘‘(i) require such other information re11 lated to such adjusted basis as the Sec12 retary may prescribe, and 

13 ‘‘(ii) exempt classes of cases in which 

14 the broker does not have sufficient infor15 mation to meet either the requirement 

16 under subparagraph (A) or the require17 ment under clause (i). 

18 ‘‘(3) INFORMATION TRANSFERS.—To the extent 

19 provided in regulations, there shall be such ex20 changes of information between brokers as such reg21 ulations may require for purposes of enabling such 

22 brokers to meet the requirements of this subsection. 

23 ‘‘(4) DEFINITIONS.—For purposes of this sub24 section, the term ‘applicable security’ means any— 


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1 ‘‘(A) security described in subparagraph 

2 (A) or (C) of section 475(c)(2), 

3 ‘‘(B) interest in a regulated investment 

4 company (as defined in section 851), or 

5 ‘‘(C) other financial instrument designated 

6 in regulations prescribed by the Secretary.’’. 

7 (b) EFFECTIVE DATE.—The amendment made by 

8 this section shall apply to returns the due date for which 

9 (determined without regard to extensions) is after Decem10 ber 31, 2009, with respect to securities acquired after De11 cember 31, 2008. 

Æ 


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