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Union Calendar No. 570 

114TH CONGRESS 

2D SESSION H. R. 670 

[Report No. 114–734] 

To amend title XIX of the Social Security Act to extend the Medicaid 

rules regarding supplemental needs trusts for Medicaid beneficiaries to 

trusts established by those beneficiaries, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 3, 2015 

Mr. THOMPSON of Pennsylvania (for himself and Mr. PALLONE) introduced 

the following bill; which was referred to the Committee on Energy and 

Commerce 

SEPTEMBER 9, 2016 

Additional sponsors: Mr. HARPER, Ms. SLAUGHTER, Mr. LOEBSACK, Mr. 

RUSH, Mr. KELLY of Pennsylvania, Mr. MARINO, Mr. HANNA, Mr. 

BARLETTA, Mr. HUFFMAN, Ms. SCHAKOWSKY, Mr. PASCRELL, Mr. BLUMENAUER, Ms. KUSTER, Mr. MURPHY of Pennsylvania, Mr. KATKO, Mr. 

DESAULNIER, Mr. ISRAEL, Mr. KENNEDY, Mr. LANCE, Mr. RUPPERSBERGER, Mrs. MCMORRIS RODGERS, Mr. HUDSON, Mr. CRAMER, Mr. 

FRELINGHUYSEN, Mr. WALBERG, Mr. BISHOP of Michigan, Mr. 

FITZPATRICK, Mr. COSTELLO of Pennsylvania, Mrs. COMSTOCK, Mr. 

AMODEI, Mr. GIBSON, Mr. YOUNG of Alaska, Mr. BENISHEK, Mr. GIBBS, 

Mr. SESSIONS, Mr. LANGEVIN, Mr. LONG, Mr. RODNEY DAVIS of Illinois, 

Mr. KLINE, Mr. HECK of Nevada, Mr. WESTERMAN, Mr. BILIRAKIS, Mr. 

HARDY, Mr. FLEISCHMANN, Mr. CICILLINE, Mr. MCKINLEY, Ms. 

WASSERMAN SCHULTZ, Mr. POCAN, Mr. DONOVAN, and Mr. SMITH of 

New Jersey 

SEPTEMBER 9, 2016 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on February 3, 2015] 

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A BILL 

To amend title XIX of the Social Security Act to extend 

the Medicaid rules regarding supplemental needs trusts 

for Medicaid beneficiaries to trusts established by those 

beneficiaries, and for other purposes. 

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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. 

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

5 ‘‘Special Needs Trust Fairness and Medicaid Improvement 

6 Act’’. 

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

8 Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Fairness in Medicaid supplemental needs trusts. 

Sec. 3. Medicaid coverage of tobacco cessation services for mothers of newborns. 

Sec. 4. Eliminating Federal financial participation with respect to expenditures 

under Medicaid for agents used for cosmetic purposes or hair 

growth. 

Sec. 5. Medicaid Improvement Fund. 

9 SEC. 2. FAIRNESS IN MEDICAID SUPPLEMENTAL NEEDS 

10 TRUSTS. 

11 (a) IN GENERAL.—Section 1917(d)(4)(A) of the Social 

12 Security Act (42 U.S.C. 1396p(d)(4)(A)) is amended by in13 serting ‘‘the individual,’’ after ‘‘for the benefit of such indi14 vidual by’’. 

15 (b) EFFECTIVE DATE.—The amendment made by sub16 section (a) shall apply to trusts established on or after the 

17 date of the enactment of this Act. 

18 SEC. 3. MEDICAID COVERAGE OF TOBACCO CESSATION 

19 SERVICES FOR MOTHERS OF NEWBORNS. 

20 (a) IN GENERAL.—Section 1905(bb) of the Social Se21 curity Act (42 U.S.C. 1396d(bb)) is amended by adding at 

22 the end the following new paragraph: 

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1 ‘‘(4) A woman shall continue to be treated as described 

2 in this subsection as a pregnant woman through the end 

3 of the 1-year period beginning on the date of the birth of 

4 a child of the woman.’’. 

5 (b) CONFORMING AMENDMENTS.— 

6 (1) Subsections (a)(2)(B) and (b)(2)(B) of sec7 tion 1916 of the Social Security Act (42 U.S.C. 

8 1396o) are each amended by inserting ‘‘(and women 

9 described in section 1905(bb) as pregnant women pur10 suant to paragraph (4) of such section)’’ after ‘‘to11 bacco cessation by pregnant women’’. 

12 (2) Section 1927(d)(2)(F) of the Social Security 

13 Act (42 U.S.C. 1396r–8(d)(2)(F)) is amended by in14 serting ‘‘(and women described in section 1905(bb) as 

15 pregnant women pursuant to paragraph (4) of such 

16 section)’’ after ‘‘pregnant women’’. 

17 (c) EFFECTIVE DATE.— 

18 (1) IN GENERAL.—Subject to paragraph (2), the 

19 amendments made by this section shall apply with re20 spect to items and services furnished on or after the 

21 date that is two years after the date of the enactment 

22 of this Act. 

23 (2) EXCEPTION FOR STATE LEGISLATION.—In 

24 the case of a State plan under title XIX of the Social 

25 Security Act, which the Secretary of Health and 

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1 Human Services determines requires State legislation 

2 in order for the plan to meet any requirement im3 posed by amendments made by this section, the plan 

4 shall not be regarded as failing to comply with the re5 quirements of such title solely on the basis of its fail6 ure to meet such an additional requirement before the 

7 first day of the first calendar quarter beginning after 

8 the close of the first regular session of the State legis9 lature that begins after the effective date specified in 

10 paragraph (1). For purposes of the previous sentence, 

11 in the case of a State that has a 2-year legislative ses12 sion, each year of the session shall be considered to be 

13 a separate regular session of the State legislature. 

14 (d) REPORT.—Not later than two years after the date 

15 of the enactment of this Act, the Inspector General of the 

16 Department of Health and Human Services shall submit 

17 to Congress a report that assesses the use of the tobacco ces18 sation service benefit under the Medicaid program. Such re19 port shall include an assessment of— 

20 (1) the extent that States are encouraging the use 

21 of such benefit, such as through promotion of bene22 ficiary and provider awareness of such benefit; and 

23 (2) gaps in the delivery of such benefit. 

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1 SEC. 4. ELIMINATING FEDERAL FINANCIAL PARTICIPATION 

2 WITH RESPECT TO EXPENDITURES UNDER 

3 MEDICAID FOR AGENTS USED FOR COSMETIC 

4 PURPOSES OR HAIR GROWTH. 

5 (a) IN GENERAL.—Section 1903(i)(21) of the Social 

6 Security Act (42 U.S.C. 1396b(i)(21)) is amended by in7 serting ‘‘section 1927(d)(2)(C) (relating to drugs when used 

8 for cosmetic purposes or hair growth), except where medi9 cally necessary, and’’ after ‘‘drugs described in’’. 

10 (b) EFFECTIVE DATE.—The amendment made by sub11 section (a) shall apply with respect to calendar quarters 

12 beginning on or after the date of the enactment of this Act. 

13 SEC. 5. MEDICAID IMPROVEMENT FUND. 

14 Section 1941(b) of the Social Security Act (42 U.S.C. 

15 1396w–1(b)) is amended— 

16 (1) in paragraph (2)— 

17 (A) by striking ‘‘under paragraph (1)’’ and 

18 inserting ‘‘under this subsection’’; and 

19 (B) by redesignating such paragraph as 

20 paragraph (3); and 

21 (2) by inserting after paragraph (1) the fol22 lowing new paragraph: 

23 ‘‘(2) ADDITIONAL FUNDING.—In addition to any 

24 funds otherwise made available to the Fund, there 

25 shall be available to the Fund, for expenditures from 

26 the Fund— 

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1 ‘‘(A) for fiscal year 2021, $10,000,000, to 

2 remain available until expended; and 

3 ‘‘(B) for fiscal year 2022, $14,000,000, to 

4 remain available until expended.’’. 

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Union Calendar No. 570 

114TH CONGRESS 

2D SESSION H. R. 670 

[Report No. 114–734] 

A BILL 

To amend title XIX of the Social Security Act to 

other purposes. trusts established by those beneficiaries, and for mental needs trusts for Medicaid beneficiaries to extend the Medicaid rules regarding suppleSEPTEMBER 9, 2016 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 

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