I 

114TH CONGRESS 

2D SESSION H. R. 4725 

To reduce the Federal deficit through reforms in spending under Medicaid, 

CHIP, and the Prevention and Public Health Fund. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 10, 2016 

Mr. PITTS introduced the following bill; which was referred to the Committee 

on Energy and Commerce 

A BILL 

To reduce the Federal deficit through reforms in spending 

under Medicaid, CHIP, and the Prevention and Public 

Health Fund. 

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 ‘‘Common Sense Savings Act of 2016’’. 

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

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Treatment of lottery winnings and other lump-sum income for purposes 

of income eligibility under Medicaid. 

Sec. 3. Eliminating PPACA enhanced Medicaid FMAP for prisoners. 

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Sec. 4. Extending previous Medicaid threshold applied for determining acceptable provider taxes. 

Sec. 5. Sunsetting PPACA increase in enhanced FMAP under CHIP. 

Sec. 6. Repeal of the Prevention and Public Health Fund. 

1 SEC. 2. TREATMENT OF LOTTERY WINNINGS AND OTHER 

2 LUMP-SUM INCOME FOR PURPOSES OF IN3 COME ELIGIBILITY UNDER MEDICAID. 

4 (a) IN GENERAL.—Section 1902 of the Social Secu5 rity Act (42 U.S.C. 1396a) is amended— 

6 (1) in subsection (a)(17), by striking ‘‘(e)(14), 

7 (e)(14)’’ and inserting ‘‘(e)(14), (e)(15)’’; and 

8 (2) in subsection (e)— 

9 (A) in paragraph (14) (relating to modified 

10 adjusted gross income), by adding at the end 

11 the following new subparagraph: 

12 ‘‘(J) TREATMENT OF CERTAIN LOTTERY

13 WINNINGS AND INCOME RECEIVED AS A LUMP

14 SUM.— 

15 ‘‘(i) IN GENERAL.—In the case of an 

16 individual who is the recipient of qualified 

17 lottery winnings (pursuant to lotteries oc18 curring on or after January 1, 2018) or 

19 qualified lump sum income (received on or 

20 after such date) and whose eligibility for 

21 medical assistance is determined based on 

22 the application of modified adjusted gross 

23 income under subparagraph (A), a State 

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1 shall, in determining such eligibility, in2 clude such winnings or income (as applica3 ble) as income received— 

4 ‘‘(I) in the month in which such 

5 winnings or income (as applicable) is 

6 received if the amount of such 

7 winnings or income is less than 

8 $60,000; 

9 ‘‘(II) over a period of 2 months 

10 if the amount of such winnings or in11 come (as applicable) is greater than or 

12 equal to $60,000 but less than 

13 $70,000; 

14 ‘‘(III) over a period of 3 months 

15 if the amount of such winnings or in16 come (as applicable) is greater than or 

17 equal to $70,000 but less than 

18 $80,000; and 

19 ‘‘(IV) over a period of 3 months 

20 plus 1 additional month for each in21 crement of $10,000 of such winnings 

22 or income (as applicable) received, not 

23 to exceed a period of 120 months (for 

24 winnings or income of $1,240,000 or 

25 more), if the amount of such winnings 

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1 or income is greater than or equal to 

2 $80,000. 

3 ‘‘(ii) COUNTING IN EQUAL INSTALL4 MENTS.—For purposes of subclauses (II), 

5 (III), and (IV) of clause (i), winnings or 

6 income to which such subclause applies 

7 shall be counted in equal monthly install8 ments over the period of months specified 

9 under such subclause. 

10 ‘‘(iii) QUALIFIED LOTTERY WINNINGS

11 DEFINED.—In this subparagraph, the term 

12 ‘qualified lottery winnings’ means winnings 

13 from a sweepstakes, lottery, or pool de14 scribed in paragraph (3) of section 4402 of 

15 the Internal Revenue Code of 1986 or a 

16 lottery operated by a multistate or multi17 jurisdictional lottery association, including 

18 amounts awarded as a lump sum payment. 

19 ‘‘(iv) QUALIFIED LUMP SUM INCOME

20 DEFINED.—In this subparagraph, the term 

21 ‘qualified lump sum income’ means income 

22 that is received as a lump sum from one 

23 of the following sources: 

24 ‘‘(I) Monetary winnings from 

25 gambling (as defined by the Secretary 

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1 and including gambling activities de2 scribed in section 1955(b)(4) of title 

3 18, United States Code). 

4 ‘‘(II) Damages received, whether 

5 by suit or agreement and whether as 

6 lump sums or as periodic payments 

7 (other than monthly payments), on 

8 account of causes of action other than 

9 causes of action arising from personal 

10 physical injuries or physical sickness. 

11 ‘‘(III) Income received as liquid 

12 assets from the estate (as defined in 

13 section 1917(b)(4)) of a deceased in14 dividual.’’; and 

15 (B) by striking ‘‘(14) EXCLUSION’’ and in16 serting ‘‘(15) EXCLUSION’’. 

17 (b) RULE OF CONSTRUCTION.—Nothing in the 

18 amendment made by subsection (a)(2)(A) shall be con19 strued as preventing a State from intercepting the State 

20 lottery winnings awarded to an individual in the State to 

21 recover amounts paid by the State under the State Med22 icaid plan under title XIX of the Social Security Act for 

23 medical assistance furnished to the individual. 

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1 SEC. 3. ELIMINATING PPACA ENHANCED MEDICAID FMAP 

2 FOR PRISONERS. 

3 Section 1905 of the Social Security Act (42 U.S.C. 

4 1396d) is amended— 

5 (1) in subsection (y)(2)(A), by adding at the 

6 end the following: ‘‘For items and services furnished 

7 on or after January 1, 2017, such term does not in8 clude an individual during the period in which the 

9 individual is an inmate in a public institution and is 

10 a patient in a medical institution.’’; and 

11 (2) in subsection (z)(2)(A), by adding at the 

12 end the following: ‘‘For calendar quarters beginning 

13 on or after January 1, 2017, the preceding sentence 

14 shall not apply with respect to medical assistance for 

15 individuals who are inmates in a public institution 

16 and patients in a medical institution.’’. 

17 SEC. 4. EXTENDING PREVIOUS MEDICAID THRESHOLD AP18 PLIED FOR DETERMINING ACCEPTABLE PRO19 VIDER TAXES. 

20 Section 1903(w)(4)(C)(ii) of the Social Security Act 

21 (42 U.S.C. 1396b(w)(4)(C)(ii)) is amended by inserting 

22 after ‘‘October 1, 2011,’’ the following: ‘‘and for portions 

23 of fiscal years occurring on or after January 1, 2017’’. 

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1 SEC. 5. SUNSETTING PPACA INCREASE IN ENHANCED FMAP 

2 UNDER CHIP. 

3 (a) IN GENERAL.—The second sentence of section 

4 2105(b) of the Social Security Act (42 U.S.C. 1397ee(b)) 

5 is amended by striking ‘‘September 30, 2019’’ and insert6 ing ‘‘March 31, 2016’’. 

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

8 subsection (a) shall apply with respect to items and serv9 ices furnished after March 31, 2016, without regard to 

10 whether this Act is enacted after such date. 

11 SEC. 6. REPEAL OF THE PREVENTION AND PUBLIC HEALTH 

12 FUND. 

13 (a) IN GENERAL.—Section 4002 of the Patient Pro14 tection and Affordable Care Act (42 U.S.C. 300u–11) is 

15 repealed. 

16 (b) RESCISSION OF UNOBLIGATED FUNDS.—Of the 

17 funds made available by such section 4002, the unobli18 gated balance is rescinded. 

Æ 

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