if the same eligibility category has been elected 
under such section for purposes of title XIX.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section take effect on October 1, 2007, and apply to 
medical assistance and child health assistance furnished 
on or after such date. 
SEC. 4. PROMOTING CESSATION OF TOBACCO USE UNDER 
THE MEDICAID PROGRAM. 
(a) DROPPING EXCEPTION FROM MEDICAID PRE-
SCRIPTION DRUG COVERAGE FOR TOBACCO CESSATION 
MEDICATIONS.—Section 1927(d)(2) of the Social Security 
Act (42 U.S.C. 1396r–8(d)(2)) is amended— 
(1) by striking subparagraph (E); 
(2) 
by 
redesignating 
subparagraphs 
(F) 
through (K) as subparagraphs (E) through (J), re-
spectively; and 
(3) in subparagraph (F) (as redesignated by 
paragraph (2)), by inserting before the period at the 
end the following: ‘‘, except agents approved by the 
Food and Drug Administration for purposes of pro-
moting, and when used to promote, tobacco ces-
sation’’. 
(b) REQUIRING COVERAGE OF TOBACCO CESSATION 
COUNSELING SERVICES FOR PREGNANT WOMEN.—Sec-
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tion 1905 of the Social Security Act (42 U.S.C. 
1396d(a)(4)) is amended— 
(1) in subsection (a)(4)— 
(A) by striking ‘‘and’’ before ‘‘(C)’’; and 
(B) by inserting before the semicolon at 
the end the following new subparagraph: ‘‘; and 
(D) counseling for cessation of tobacco use (as 
defined in subsection (y)) for pregnant women’’; 
and 
(2) by adding at the end the following: 
‘‘(y)(1) For purposes of this title, the term ‘coun-
seling for cessation of tobacco use’ means therapy and 
counseling for cessation of tobacco use for pregnant 
women who use tobacco products or who are being treated 
for tobacco use that is furnished— 
‘‘(A) by or under the supervision of a physician; 
or 
‘‘(B) by any other health care professional 
who— 
‘‘(i) is legally authorized to furnish such 
services under State law (or the State regu-
latory mechanism provided by State law) of the 
State in which the services are furnished; and 
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‘‘(ii) is authorized to receive payment for 
other services under this title or is designated 
by the Secretary for this purpose. 
‘‘(2) Subject to paragraph (3), such term is limited 
to— 
‘‘(A) therapy and counseling services rec-
ommended in ‘Treating Tobacco Use and Depend-
ence: A Clinical Practice Guideline’, published by the 
Public Health Service in June 2000, or any subse-
quent modification of such Guideline; and 
‘‘(B) such other therapy and counseling services 
that the Secretary recognizes to be effective. 
‘‘(3) Such term shall not include coverage for drugs 
or biologicals that are not otherwise covered under this 
title.’’. 
(c) REMOVAL OF COST SHARING FOR TOBACCO CES-
SATION
COUNSELING
SERVICES
FOR
PREGNANT 
WOMEN.— 
(1) GENERAL COST SHARING LIMITATIONS.— 
Section 1916 of the Social Security Act (42 U.S.C. 
1396o) is amended in each of subsections (a)(2)(B) 
and (b)(2)(B) by inserting ‘‘, and counseling for ces-
sation of tobacco use (as defined in section 
1905(y))’’ after ‘‘complicate the pregnancy’’. 
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(2) APPLICATION TO ALTERNATIVE COST SHAR-
ING.—Section 1916A(b)(3)(B)(iii) of such Act (42 
U.S.C. 1396o–1(b)(3)(B)(iii)) is amended by insert-
ing ‘‘, and counseling for cessation of tobacco use by 
pregnant women (as defined in section 1905(y))’’ 
after ‘‘complicate the pregnancy’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to services furnished on or after 
the date that is 1 year after the date of enactment of this 
Act. 
SEC. 5. STATE OPTION TO PROVIDE FAMILY PLANNING 
SERVICES AND SUPPLIES TO INDIVIDUALS 
WITH INCOMES THAT DO NOT EXCEED A 
STATE’S INCOME ELIGIBILITY LEVEL FOR 
MEDICAL ASSISTANCE. 
(a) IN GENERAL.—Title XIX of the Social Security 
Act (42 U.S.C. 1396 et seq.) is amended— 
(1) by redesignating section 1939 as section 
1940; and 
(2) by inserting after section 1938 the following 
new section: 
‘‘STATE OPTION TO PROVIDE FAMILY PLANNING 
SERVICES AND SUPPLIES 
‘‘SEC. 1939. (a) IN GENERAL.—Subject to sub-
sections (b) and (c), a State may elect (through a State 
plan amendment) to make medical assistance described in 
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section 1905(a)(4)(C) available to any individual whose 
family income does not exceed the greater of— 
‘‘(1) 185 percent of the income official poverty 
line (as defined by the Office of Management and 
Budget, and revised annually in accordance with sec-
tion 673(2) of the Omnibus Budget Reconciliation 
Act of 1981) applicable to a family of the size in-
volved; or 
‘‘(2) the eligibility income level (expressed as a 
percentage of such poverty line) that has been speci-
fied under a waiver authorized by the Secretary or 
under section 1902(r)(2)), on October 1, 2007, for 
an individual to be eligible for medical assistance 
under the State plan. 
‘‘(b) COMPARABILITY.—Medical assistance described 
in section 1905(a)(4)(C) that is made available under a 
State plan amendment under subsection (a) shall— 
‘‘(1) not be less in amount, duration, or scope 
than the medical assistance described in that section 
that is made available to any other individual under 
the State plan; and 
‘‘(2) be provided in accordance with the restric-
tions on deductions, cost sharing, or similar charges 
imposed under section 1916(a)(2)(D). 
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‘‘(c) OPTION TO EXTEND COVERAGE DURING
A 
POST-ELIGIBILITY PERIOD.— 
‘‘(1) INITIAL
PERIOD.—A State plan amend-
ment made under subsection (a) may provide that 
any individual who was receiving medical assistance 
described in section 1905(a)(4)(C) as a result of 
such amendment, and who becomes ineligible for 
such assistance because of hours of, or income from, 
employment, may remain eligible for such medical 
assistance through the end of the 6-month period 
that begins on the first day the individual becomes 
so ineligible. 
‘‘(2) ADDITIONAL EXTENSION.—A State plan 
amendment made under subsection (a) may provide 
that any individual who has received medical assist-
ance described in section 1905(a)(4)(C) during the 
entire 6-month period described in paragraph (1) 
may be extended coverage for such assistance for a 
succeeding 6-month period.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) apply to medical assistance provided on and 
after October 1, 2007. 
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SEC. 6. STATE OPTION TO EXTEND THE POSTPARTUM PE-
RIOD FOR PROVISION OF FAMILY PLANNING 
SERVICES AND SUPPLIES. 
(a) IN GENERAL.—Section 1902(e)(5) of the Social 
Security Act (42 U.S.C. 1396a(e)(5)) is amended— 
(1) by striking ‘‘eligible under the plan, as 
though’’ and inserting ‘‘eligible under the plan— 
‘‘(A) as though’’; 
(2) by striking the period and inserting ‘‘; 
and’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(B) for medical assistance described in section 
1905(a)(4)(C) for so long as the family income of 
such woman does not exceed the maximum income 
level established by the State for the woman to be 
eligible for medical assistance under the State plan 
(as a result of pregnancy or otherwise).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) apply to medical assistance provided on and 
after October 1, 2007. 
SEC. 7. STATE OPTION TO PROVIDE SUPPLEMENTAL SCHIP 
COVERAGE TO CHILDREN WHO HAVE OTHER 
HEALTH COVERAGE. 
(a) IN GENERAL.— 
(1) SCHIP.— 
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(A) STATE OPTION TO PROVIDE SUPPLE-
MENTAL
COVERAGE.—Section 2110(b) of the 
Social Security Act (42 U.S.C. 1397jj(b)) is 
amended— 
(i) in paragraph (1)(C), by inserting 
‘‘, subject to paragraph (5),’’ after ‘‘under 
title XIX or’’; and 
(ii) by adding at the end the fol-
lowing: 
‘‘(5) STATE
OPTION
TO
PROVIDE
SUPPLE-
MENTAL COVERAGE.— 
‘‘(A) IN
GENERAL.—A State may waive 
the requirement of paragraph (1)(C) that a tar-
geted low-income child may not be covered 
under a group health plan or under health in-
surance coverage if the State satisfies the con-
ditions described in subsection (c)(9). The State 
may waive such requirement in order to pro-
vide— 
‘‘(i) services for children with special 
health care needs (as defined for purposes 
of title V); or 
‘‘(ii) all services. 
‘‘(B) AUTHORITY TO LIMIT INCOME ELIGI-
BILITY.—In waiving such requirement, a State 
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may limit the application of the waiver to chil-
dren whose family income does not exceed a 
level specified by the State, so long as the level 
so specified does not exceed the maximum in-
come level otherwise established for other chil-
dren under the State child health plan.’’. 
(B) 
CONDITIONS
DESCRIBED.—Section 
2105(c) of the Social Security Act (42 U.S.C. 
1397ee(c)) is amended by adding at the end the 
following: 
‘‘(9) CONDITIONS FOR PROVISION OF SUPPLE-
MENTAL
COVERAGE.—For 
purposes 
of 
section 
2110(b)(5), the conditions described in this para-
graph are the following: 
‘‘(A) INCOME
ELIGIBILITY.—The State 
child health plan (whether implemented under 
title XIX or this title)— 
‘‘(i) has the highest income eligibility 
standard permitted under this title on Jan-
uary 1, 2008; 
‘‘(ii) subject to subparagraph (B), 
does not limit the acceptance of applica-
tions for children; and 
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‘‘(iii) provides benefits to all children 
in the State who apply for and meet eligi-
bility standards. 
‘‘(B) NO WAITING LIST IMPOSED.—With 
respect to children whose family income is at or 
below 200 percent of the poverty line, the State 
does not impose any numerical limitation, wait-
ing list, or similar limitation on the eligibility of 
such children for child health assistance under 
such State plan. 
‘‘(C) NO MORE FAVORABLE TREATMENT.— 
The State child health plan may not provide 
more favorable coverage of dental services to 
the children covered under section 2110(b)(5) 
than to children otherwise covered under this 
title.’’. 
(C) STATE OPTION TO WAIVE WAITING PE-
RIOD.—Section 2102(b)(1)(B) of the Social Se-
curity Act (42 U.S.C. 1397bb(b)(1)(B)), as 
amended by section 2(b)(3)(B), is amended— 
(i) in clause (ii), by striking ‘‘and’’ at 
the end; 
(ii) in clause (iii), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
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(iii) by adding at the end the fol-
lowing new clause: 
‘‘(iv) at State option, may not apply a 
waiting period in the case of a child de-
scribed in section 2110(b)(5), if the State 
satisfies 
the 
requirements 
of 
section 
2105(c)(9).’’. 
(2) APPLICATION OF ENHANCED MATCH UNDER 
MEDICAID.—Section 1905 of the Social Security Act 
(42 U.S.C. 1396d), as amended by section 2(a)(2), 
is amended— 
(A) in subsection (b), in the fourth sen-
tence, by striking ‘‘or (u)(4)’’ and inserting 
‘‘(u)(4), or (u)(5)’’; and 
(B) in subsection (u)— 
(i) by redesignating paragraph (5) as 
paragraph (6); and 
(ii) by inserting after paragraph (4) 
the following: 
‘‘(5) For purposes of subsection (b), the ex-
penditures described in this paragraph are expendi-
tures for items and services for children described in 
section 2110(b)(5), but only in the case of a State 
that 
satisfies 
the 
requirements 
of 
section 
2105(c)(8).’’. 
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(3) APPLICATION OF SECONDARY PAYER PROVI-
SIONS.—Section 2107(e)(1) of the Social Security 
Act (42 U.S.C. 1397gg(e)(1)), as amended by sec-
tion 3(b), is amended by adding at the end the fol-
lowing: 
‘‘(F) Section 1902(a)(25) (relating to co-
ordination of benefits and secondary payer pro-
visions) with respect to children covered under 
a waiver described in section 2110(b)(5).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect on January 1, 2008, and 
shall apply to child health assistance and medical assist-
ance provided on or after that date. 
SEC. 8. DEMONSTRATION PROJECT FOR COVERAGE OF 
TELEMEDICINE SERVICES UNDER MEDICAID. 
(a) DEFINITIONS.— 
(1) APPLICABLE INDIVIDUAL.—The term ‘‘ap-
plicable individual’’ means an individual who— 
(A) is eligible for benefits under a State 
plan under title XIX of the Social Security Act 
(42 U.S.C. 1396 et seq.); 
(B) is a pregnant woman; 
(C) is at risk of complications in preg-
nancy or preterm birth; and 
(D) resides in a rural area. 
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(2) MEDICAID.—The term ‘‘Medicaid’’ means 
the program established under title XIX of the So-
cial Security Act (42 U.S.C. 1396 et seq.). 
(3) RURAL
AREA.—The term ‘‘rural area’’ 
means an area not within a Metropolitan Statistical 
Area (as defined by the Office of Management and 
Budget). 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Health and Human Services. 
(5) STATE.—The term ‘‘State’’ has the mean-
ing given such term for purposes of title XIX of the 
Social Security Act (42 U.S.C. 1396 et seq.). 
(6) TELEMEDICINE SERVICES.—The term ‘‘tele-
medicine services’’ means the provision of health 
care consultations and diagnoses by an off-site spe-
cialist using equipment that allows the specialist to 
be connected to a local provider and a patient in real 
time during a patient visit. 
(b) ESTABLISHMENT.— 
(1) IN GENERAL.—The Secretary shall establish 
a demonstration program (in this section referred to 
as the ‘‘program’’) to provide payments to States for 
the cost of providing telemedicine services for the 
treatment of applicable individuals. 
(2) SITES.— 
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(A) IN
GENERAL.—The demonstration 
shall be conducted at not less than 3 and not 
more than 5 sites. 
(B) COMPOSITION.—Each site shall be 
composed of a single rural area. 
(3) DURATION.—The demonstration shall be 
conducted for a period of 3 years. 
(c) USE OF FUNDS.—Funds provided to a State 
under the program shall be used to reimburse local pro-
viders and off-site specialists for the cost of providing tele-
medicine services for the treatment of applicable individ-
uals. 
(d) EVALUATIONS AND REPORTS.— 
(1) INITIAL
EVALUATION
AND
REPORT.—Not 
later than 24 months after the date of enactment of 
this Act, the Secretary shall provide to Congress an 
interim report on the demonstration containing an 
evaluation of the impact of the demonstration on 
health outcomes and cost-effectiveness. 
(2) FINAL REPORT.—Not later than 6 months 
after the completion of the program under this sec-
tion, the Secretary shall submit to Congress a report 
on such program, together with recommendations for 
such legislation and administrative action as the 
Secretary determines to be appropriate. 
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(e) PROHIBITION.—Amounts paid to a State under 
the program shall not be used for purposes of claiming 
a Federal matching payment under section 1903(a) of the 
Social Security Act (42 U.S.C. 1396b(a)). 
(f) LIMITATION ON PAYMENT AMOUNTS.—In no case 
may the aggregate amount paid by the Secretary to States 
under the program exceed $15,000,000. 
(g) WAIVER.—The Secretary shall waive compliance 
with such requirements of the Medicaid program to the 
extent and for the period the Secretary finds necessary 
to conduct the program. 
SEC. 9. PEDIATRIC AND PERINATAL QUALITY MEASURES. 
(a) PEDIATRIC
AND PERINATAL QUALITY MEAS-
URES.— 
(1) IN GENERAL.—The Secretary of Health and 
Human Services (in this section referred to as the 
‘‘Secretary’’) shall develop and disseminate a na-
tional set of core pediatric and perinatal quality 
measures. 
(2) CONSULTATION AND COLLABORATION.— 
(A) COLLABORATION.—In developing and 
disseminating such quality measures, the Sec-
retary shall collaborate with— 
(i) the Director of the Agency for 
Healthcare Research and Quality; and 
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(ii) other appropriate entities, includ-
ing— 
(I) a national organization that 
exists for the purpose of achieving 
consensus among health care pro-
viders, payers, and consumers on rec-
ommendations of measures of quality; 
and 
(II) health professional certifi-
cation boards. 
(B) CONSULTATION.—In developing and 
disseminating such quality measures, the Sec-
retary shall consult with— 
(i) health professionals; and 
(ii) consumer groups. 
(3) APPROPRIATION.—There are appropriated 
$50,000,000 to the Agency for Healthcare Research 
and Quality for each of fiscal years 2009, 2010, and 
2011, to carry out this subsection. 
(b) COLLECTION
AND
REPORTING
OF
STATE 
DATA.— 
(1) IN GENERAL.—The Secretary shall collect 
data regarding the extent to which States use pedi-
atric and perinatal inpatient and outpatient quality 
measures on an ongoing basis. 
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