I 

108TH CONGRESS 

2D SESSION H. R. 4961

To extend State Medicaid fiscal relief. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 22, 2004

Mr. KING of New York (for himself and Mr. BROWN of Ohio) introduced the 

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

A BILL

To extend State Medicaid fiscal relief.

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 ‘‘Medicaid Act of 2004’’. 

5 SEC. 2. EXTENSION OF MEDICAID STATE FISCAL RELIEF. 

6 (a) EXTENSION OF TEMPORARY FREEZE OF MED7 ICAID FMAP FOR CERTAIN STATES.—Section 401(a) of 

8 the Jobs and Growth Tax Relief Reconciliation Act of 

9 2003 (42 U.S.C. 1396d note) is amended—

10 (1) in the subsection heading, by striking 

11 ‘‘$10,000,000,000 FOR A’’; 

12 (2) in paragraph (2)—
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1 (A) in the paragraph heading, by striking 

2 ‘‘FIRST 3 QUARTERS OF’’; and 

3 (B) by striking ‘‘the first, second, and 

4 third calendar quarters’’ and inserting ‘‘each 

5 calendar quarter’’; 

6 (3) by redesignating paragraphs (3) through 

7 (9) as paragraphs (4) through (10), respectively; 

8 and 

9 (4) by inserting after paragraph (2), the fol10 lowing: 

11 ‘‘(3) PERMITTING MAINTENANCE OF FISCAL

12 YEAR 2004 FMAP FOR FISCAL YEAR 2005.—Subject to 

13 paragraph (6), if the FMAP determined without re14 gard to this subsection for a State for fiscal year 

15 2005 is less than the FMAP as so determined for 

16 fiscal year 2004, the FMAP for the State for fiscal 

17 year 2004 shall be substituted for the State’s FMAP 

18 for each calendar quarter of fiscal year 2005, before 

19 the application of this subsection.’’. 

20 (b) TEMPORARY INCREASE IN MEDICAID FMAP FOR

21 ALL STATES.—Section 401(a) of the Jobs and Growth 

22 Tax Relief Reconciliation Act of 2003 (42 U.S.C. 1396d 

23 note), as amended by subsection (a), is amended by strik24 ing paragraphs (4) and (5) (as redesignated by subsection 

25 (a)(3)) and inserting the following: 
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1 ‘‘(4) TEMPORARY INCREASE IN MEDICAID

2 FMAP.—

3 ‘‘(A) GENERAL 2.95 PERCENTAGE POINTS

4 INCREASE FOR LAST 2 CALENDAR QUARTERS OF

5 FISCAL YEAR 2003 AND FIRST 3 CALENDAR

6 QUARTERS OF FISCAL YEAR 2004.—Subject to 

7 paragraphs (6), (7), and (8), for each State for 

8 the third and fourth calendar quarters of fiscal 

9 year 2003 and for the first, second, and third 

10 calendar quarters of fiscal year 2004, the 

11 FMAP (taking into account the application of 

12 paragraphs (1), (2), and (3)) shall be increased 

13 by 2.95 percentage points. 

14 ‘‘(B) GENERAL 1.60 PERCENTAGE POINTS

15 INCREASE FOR LAST CALENDAR QUARTER OF

16 FISCAL YEAR 2004 AND EACH CALENDAR QUAR17 TER OF FISCAL YEAR 2005.—Subject to para18 graphs (6), (7), and (8), for each State for the 

19 fourth calendar quarter of fiscal year 2004 and 

20 each calendar quarter of fiscal year 2005, the 

21 FMAP (taking into account the application of 

22 paragraphs (1), (2), and (3) but without regard 

23 to the application of subparagraph (A)) shall be 

24 increased by 1.60 percentage points. 
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1 ‘‘(5) INCREASE IN CAP ON MEDICAID PAYMENTS

2 TO TERRITORIES.—

3 ‘‘(A) LAST 2 CALENDAR QUARTERS OF FIS4 CAL YEAR 2003 AND FIRST 3 CALENDAR QUAR5 TERS OF FISCAL YEAR 2004.—Subject to para6 graphs (7) and (8), with respect to the third 

7 and fourth calendar quarters of fiscal year 

8 2003 and the first, second, and third calendar 

9 quarters of fiscal year 2004, the amounts other10 wise determined for Puerto Rico, the Virgin Is11 lands, Guam, the Northern Mariana Islands, 

12 and American Samoa under subsections (f) and 

13 (g) of section 1108 of the Social Security Act 

14 (42 U.S.C. 1308) shall each be increased by an 

15 amount equal to 5.90 percent of such amounts. 

16 ‘‘(B) LAST CALENDAR QUARTER OF FISCAL

17 YEAR 2004 AND EACH CALENDAR QUARTER OF

18 FISCAL YEAR 2005.—Subject to paragraphs (7) 

19 and (8), with respect to the fourth calendar 

20 quarter of fiscal year 2004 and each calendar 

21 quarter of fiscal year 2005, the amounts other22 wise determined for Puerto Rico, the Virgin Is23 lands, Guam, the Northern Mariana Islands, 

24 and American Samoa under subsections (f) and 

25 (g) of section 1108 of the Social Security Act 
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1 (42 U.S.C. 1308) shall each be increased by an 

2 amount equal to 2.52 percent of such 

3 amounts.’’. 

4 (c) CONFORMING AMENDMENTS.—Section 401(a) of 

5 the Jobs and Growth Tax Relief Reconciliation Act of 

6 2003 (42 U.S.C. 1396d note), as amended by subsections 

7 (a) and (b), is amended—

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

9 (5)’’ and inserting ‘‘paragraph (6)’’; 

10 (2) in paragraph (2), by striking ‘‘paragraph 

11 (5)’’ and inserting ‘‘paragraph (6)’’; 

12 (3) in paragraph (7) (as redesignated by sub13 section (a)(3))—

14 (A) by striking ‘‘paragraph (4)’’ each place 

15 it appears and inserting ‘‘paragraph (5)’’; and 

16 (B) by striking ‘‘paragraph (3)’’ each place 

17 it appears and inserting ‘‘paragraph (4)’’; 

18 (4) in paragraph (8) (as so redesignated), by 

19 striking ‘‘the first, second and third calendar quar20 ters of fiscal year 2004’’ and inserting ‘‘each cal21 endar quarter of fiscal year 2004 and fiscal year 

22 2005’’; and 
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1 (5) in paragraph (10) (as so redesignated), by 

2 striking ‘‘October 1, 2004’’ and inserting ‘‘January 

3 1, 2005’’.

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