II 

114TH CONGRESS 

1ST SESSION S. 1409 

To amend title XIX of the Social Security Act to require States to suspend, 

rather than terminate, an individual’s eligibility for medical assistance 

under the State Medicaid plan while such individual is an inmate of 

a public institution. 

IN THE SENATE OF THE UNITED STATES 

MAY 21, 2015 

Mr. MARKEY (for himself, Mr. DURBIN, and Mr. BROWN) introduced the 

following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To amend title XIX of the Social Security Act to require 

States to suspend, rather than terminate, an individual’s 

eligibility for medical assistance under the State Medicaid plan while such individual is an inmate of a public 

institution. 

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 ‘‘Supporting Positive 

5 Outcomes After Release Act’’. 

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•S 1409 IS

1 SEC. 2. SUSPENSION OF MEDICAID BENEFITS FOR INMATES 

2 OF PUBLIC INSTITUTIONS. 

3 (a) IN GENERAL.—Section 1902 of the Social Secu4 rity Act (42 U.S.C. 1396a) is amended— 

5 (1) in subsection (a)— 

6 (A) by striking ‘‘and’’ at the end of para7 graph (80); 

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

9 paragraph (81) and inserting ‘‘; and’’; and 

10 (C) by inserting after paragraph (81) the 

11 following new paragraph: 

12 ‘‘(82) provide that the State shall not terminate 

13 (but may suspend) enrollment under a State plan 

14 for medical assistance for an individual who is an el15 igible individual (as defined in subsection (ll)(1)) be16 cause the individual is an inmate of a public institu17 tion (as defined in subsection (ll)(2)).’’; and 

18 (2) by adding at the end the following new sub19 section: 

20 ‘‘(ll) ELIGIBLE INDIVIDUAL; PUBLIC INSTITUTION.— 

21 For purposes of subsection (a)(82) and this subsection: 

22 ‘‘(1) ELIGIBLE INDIVIDUAL.—The term ‘eligible 

23 individual’ means an individual who is an inmate of 

24 a public institution and was enrolled for medical as25 sistance under the State plan immediately before be26 coming an inmate of such a public institution or who 

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1 becomes eligible to enroll for such medical assistance 

2 while an inmate of a public institution. 

3 ‘‘(2) INMATE OF A PUBLIC INSTITUTION.—The 

4 term ‘inmate of a public institution’ has the meaning 

5 given such term for purposes of applying the sub6 division (A) following paragraph (29) of section 

7 1905(a), taking into account the exception in such 

8 subdivision for a patient of a medical institution.’’. 

9 (b) NO CHANGE IN EXCLUSION FROM MEDICAL AS10 SISTANCE FOR INMATES OF PUBLIC INSTITUTIONS.— 

11 Nothing in this section shall be construed as changing the 

12 exclusion from medical assistance under the subdivision 

13 (A) following paragraph (29) of section 1905(a) of the So14 cial Security Act (42 U.S.C. 1396d(a)), including any ap15 plicable restrictions on a State submitting claims for Fed16 eral financial participation under title XIX of such Act 

17 for such assistance. 

18 (c) EFFECTIVE DATE.— 

19 (1) IN GENERAL.—Except as provided in para20 graph (2), the amendments made by subsection (a) 

21 shall apply to eligibility and enrollment of individ22 uals who become inmates of public institutions on or 

23 after the date that is 1 year after the date of the 

24 enactment of this Act. 

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1 (2) RULE FOR CHANGES REQUIRING STATE

2 LEGISLATION.—In the case of a State plan for med3 ical assistance under title XIX of the Social Security 

4 Act which the Secretary of Health and Human Serv5 ices determines requires State legislation (other than 

6 legislation appropriating funds) in order for the plan 

7 to meet the additional requirements imposed by the 

8 amendments made by subsection (a), the State plan 

9 shall not be regarded as failing to comply with the 

10 requirements of such title solely on the basis of its 

11 failure to meet these additional requirements before 

12 the first day of the first calendar quarter beginning 

13 after the close of the first regular session of the 

14 State legislature that begins after the date of the en15 actment of this Act. For purposes of the previous 

16 sentence, in the case of a State that has a 2-year 

17 legislative session, each year of such session shall be 

18 deemed to be a separate regular session of the State 

19 legislature. 

Æ 

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