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(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to items and services furnished 
on or after January 1, 2008. 
SEC. 203. PARITY FOR MENTAL HEALTH COINSURANCE. 
Section 1833(c) of the Social Security Act (42 U.S.C. 
1395l(c)) is amended by inserting ‘‘before 2008’’ after ‘‘in 
any calendar year’’. 
Subtitle B—Improving, Clarifying, 
and Simplifying Financial As-
sistance for Low Income Medi-
care Beneficiaries 
SEC. 211. IMPROVING ASSETS TESTS FOR MEDICARE SAV-
INGS PROGRAM AND LOW-INCOME SUBSIDY 
PROGRAM. 
(a) APPLICATION OF HIGHEST LEVEL PERMITTED 
UNDER LIS.— 
(1) TO FULL-PREMIUM SUBSIDY ELIGIBLE INDI-
VIDUALS.—Section 1860D–14(a) of the Social Secu-
rity Act (42 U.S.C. 1395w–114(a)) is amended— 
(A) in paragraph (1), in the matter before 
subparagraph (A), by inserting ‘‘(or, beginning 
with 2009, paragraph (3)(E))’’ after ‘‘para-
graph (3)(D)’’; and 
(B) in paragraph (3)(A)(iii), by striking 
‘‘(D) or’’. 
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(2) ANNUAL
INCREASE
IN
LIS
RESOURCE 
TEST.—Section 1860D–14(a)(3)(E)(i) of such Act 
(42 U.S.C. 1395w–114(a)(3)(E)(i)) is amended— 
(A) by striking ‘‘and’’ at the end of sub-
clause (I); 
(B) in subclause (II), by inserting ‘‘(before 
2009)’’ after ‘‘subsequent year’’; 
(C) by striking the period at the end of 
subclause (II) and inserting a semicolon; 
(D) by inserting after subclause (II) the 
following new subclauses: 
‘‘(III) for 2009, $17,000 (or 
$34,000 in the case of the combined 
value of the individual’s assets or re-
sources and the assets or resources of 
the individual’s spouse); and 
‘‘(IV) for a subsequent year, the 
dollar amounts specified in this sub-
clause (or subclause (III)) for the pre-
vious year increased by the annual 
percentage increase in the consumer 
price index (all items; U.S. city aver-
age) as of September of such previous 
year.’’; and 
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(E) in the last sentence, by inserting ‘‘or 
(IV)’’ after ‘‘subclause (II)’’. 
(3) APPLICATION OF LIS TEST UNDER MEDI-
CARE SAVINGS PROGRAM.—Section 1905(p)(1)(C) of 
such Act (42 U.S.C. 1396d(p)(1)(C)) is amended by 
inserting before the period at the end the following: 
‘‘or, effective beginning with January 1, 2009, whose 
resources (as so determined) do not exceed the max-
imum resource level applied for the year under sec-
tion 1860D–14(a)(3)(E) applicable to an individual 
or to the individual and the individual’s spouse (as 
the case may be)’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply to eligibility determinations for 
income-related subsidies and medicare cost-sharing fur-
nished for periods beginning on or after January 1, 2009. 
SEC. 212. MAKING QI PROGRAM PERMANENT AND EXPAND-
ING ELIGIBILITY. 
(a) MAKING PROGRAM PERMANENT.— 
(1) IN GENERAL.—Section 1902(a)(10)(E)(iv) 
of 
the 
Social 
Security 
Act 
(42 
U.S.C. 
1396b(a)(10)(E)(iv)) is amended— 
(A) by striking ‘‘sections 1933 and’’ and 
by inserting ‘‘section’’; and 
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(B) by striking ‘‘(but only for’’ and all that 
follows through ‘‘September 2007)’’. 
(2) ELIMINATION OF FUNDING LIMITATION.— 
(A) IN GENERAL.—Section 1933 of such 
Act (42 U.S.C. 1396u–3) is amended— 
(i) in subsection (a), by striking ‘‘who 
are selected to receive such assistance 
under subsection (b)’’; 
(ii) by striking subsections (b), (c), 
(e), and (g); 
(iii) in subsection (d), by striking 
‘‘furnished in a State’’ and all that follows 
and inserting ‘‘the Federal medical assist-
ance percentage shall be equal to 100 per-
cent.’’; and 
(iv) by redesignating subsections (d) 
and (f) as subsections (b) and (c), respec-
tively. 
(B) CONFORMING
AMENDMENT.—Section 
1905(b) of such Act (42 U.S.C. 1396d(b)) is 
amended by striking ‘‘1933(d)’’ and inserting 
‘‘1933(b)’’. 
(C) EFFECTIVE DATE.—The amendments 
made by subparagraph (A) shall take effect on 
October 1, 2007. 
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