I 

108TH CONGRESS 

2D SESSION H. R. 3840 

To amend title XXI of the Social Security Act to permit qualifying States 

to use a portion of their allotments under the State children’s health 

insurance program for any fiscal year for certain Medicaid expenditures, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 25, 2004 

Mr. NETHERCUTT introduced the following bill; which was referred to the 

Committee on Energy and Commerce 

A BILL 

To amend title XXI of the Social Security Act to permit 

qualifying States to use a portion of their allotments 

under the State children’s health insurance program for 

any fiscal year for certain Medicaid expenditures, and 

for other purposes. 

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 ‘‘Children’s Health Eq5 uity Technical Amendments Act of 2004’’. 
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1 SEC. 2. AUTHORITY FOR QUALIFYING STATES TO USE POR2 TION OF SCHIP ALLOTMENT FOR ANY FISCAL 

3 YEAR FOR CERTAIN MEDICAID EXPENDI4 TURES. 

5 (a) IN GENERAL.—Section 2105(g)(1)(A) of the So6 cial Security Act (42 U.S.C. 1397ee(g)(1)(A)) (as added 

7 by section 1(b) of Public Law 108–74) is amended by 

8 striking ‘‘, 1999, 2000, or 2001’’ and inserting ‘‘and any 

9 fiscal year thereafter’’. 

10 (b) SPECIAL RULE FOR USE OF ALLOTMENTS FOR

11 FISCAL YEAR 2002 OR THEREAFTER.—Section 2105(g) 

12 of the Social Security Act (42 U.S.C. 1397ee(g)) (as so 

13 added and as amended by Public Law 108–127) is amend14 ed— 

15 (1) in paragraph (2), by striking ‘‘In this sub16 section’’ and inserting ‘‘Subject to paragraph (4), in 

17 this subsection’’; and 

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

19 ‘‘(4) SPECIAL RULE REGARDING AUTHORITY TO

20 USE PORTION OF ALLOTMENTS FOR FISCAL YEAR

21 2002 OR THEREAFTER.—Notwithstanding para22 graph (2), the authority provided under paragraph 

23 (1)(A) with respect to any allotment under section 

24 2104 for fiscal year 2002 or any fiscal year there25 after (insofar as the allotment is available under 

26 subsections (e) and (g) of such section), shall only 
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1 apply to a qualifying State if the State has imple2 mented at least 3 of the following policies and proce3 dures (relating to coverage of children under title 

4 XIX and this title): 

5 ‘‘(A) UNIFORM, SIMPLIFIED APPLICATION

6 FORM.—With respect to children who are eligi7 ble for medical assistance under section 

8 1902(a)(10)(A), the State uses the same uni9 form, simplified application form (including, if 

10 applicable, permitting application other than in 

11 person) for purposes of establishing eligibility 

12 for benefits under title XIX and this title. 

13 ‘‘(B) ELIMINATION OF ASSET TEST.—The 

14 State does not apply any asset test for eligi15 bility under section 1902(l) or this title with re16 spect to children. 

17 ‘‘(C) ADOPTION OF 12-MONTH CONTIN18 UOUS ENROLLMENT.—The State provides that 

19 eligibility shall not be regularly redetermined 

20 more often than once every year under this title 

21 or for children described in section 

22 1902(a)(10)(A). 

23 ‘‘(D) SAME VERIFICATION AND REDETER24 MINATION POLICIES; AUTOMATIC REASSESS25 MENT OF ELIGIBILITY.—With respect to chil-
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1 dren who are eligible for medical assistance 

2 under section 1902(a)(10)(A), the State pro3 vides for initial eligibility determinations and 

4 redeterminations of eligibility using the same 

5 verification policies (including with respect to 

6 face-to-face interviews), forms, and frequency 

7 as the State uses for such purposes under this 

8 title, and, as part of such redeterminations, 

9 provides for the automatic reassessment of the 

10 eligibility of such children for assistance under 

11 title XIX and this title. 

12 ‘‘(E) OUTSTATIONING ENROLLMENT

13 STAFF.—The State provides for the receipt and 

14 initial processing of applications for benefits 

15 under this title and for children under title XIX 

16 at facilities defined as disproportionate share 

17 hospitals under section 1923(a)(1)(A) and fed18 erally-qualified health centers described in sec19 tion 1905(l)(2)(B) consistent with section 

20 1902(a)(55).’’. 

21 (c) CONFORMING AMENDMENT.—Section 2105(g)(3) 

22 of the Social Security Act (42 U.S.C. 1397ee(g)(3)) is 

23 amended by striking ‘‘paragraphs (1) and (2)’’ and insert24 ing ‘‘this subsection’’. 
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1 (d) EFFECTIVE DATE.—The amendments made by 

2 this section take effect as if enacted on October 1, 2003. 

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