a child is deemed under the preceding sentence to be eligi-
ble for child health or medical assistance, the child health
or medical assistance eligibility identification number of
the mother shall also serve as the identification number
of the child, and all claims shall be submitted and paid
under such number (unless the State issues a separate
identification number for the child before such period ex-
pires).’’.
(b) STATE OPTION TO USE ENHANCED FMAP AND
SCHIP ALLOTMENT
FOR COVERAGE
OF ADDITIONAL
PREGNANT WOMEN UNDER THE MEDICAID PROGRAM.—
Section 1905 of the Social Security Act (42 U.S.C. 1396d)
is amended—
(1) in the fourth sentence of subsection (b), by
inserting ‘‘and in the case of a State plan that meets
the condition described in subsections (u)(1) and
(u)(4)(A), with respect to expenditures described in
subsection (u)(4)(B) for the State for a fiscal year’’
after ‘‘for a fiscal year,’’; and
(2) in subsection (u)—
(A) by redesignating paragraph (4) as
paragraph (5); and
(B) by inserting after paragraph (3) the
following new paragraph:
‘‘(4)(A) The condition described in this subparagraph
for a State plan is that the plan has established an income
level under section 1902(l)(2)(A) with respect to individ-
uals described in section 1902(l)(1)(A) that is 185 percent
of the income official poverty line.
‘‘(B) For purposes of subsection (b), the expenditures
described in this paragraph are expenditures for medical
assistance for women described in section 1902(l)(1)(A)
whose income exceeds the income level established for such
women under section 1902(l)(2)(A)(i) as of the date of
the enactment of this paragraph but does not exceed 185
percent of the income official poverty line.’’.
(c) NO WAITING PERIODS OR COST-SHARING.—
(1) 
NO
WAITING
PERIOD.—Section
2102(b)(1)(B) of the Social Security Act (42 U.S.C.
1397bb(b)(1)(B)) is amended—
(A) by striking ‘‘, and’’ at the end of
clause (i) and inserting a semicolon;
(B) by striking the period at the end of
clause (ii) and inserting ‘‘; and’’; and
(C) by adding at the end the following new
clause:
‘‘(iii) may not apply a waiting period
(including a waiting period to carry out
paragraph (3)(C)) in the case of a targeted
low-income pregnant woman, if the State
provides for coverage of pregnancy-related
assistance for such women in accordance
with section 2111.’’.
(2) NO
COST-SHARING
FOR
PREGNANCY-RE-
LATED BENEFITS.—Section 2103(e)(2) of such Act
(42 U.S.C. 1397cc(e)(2)) is amended—
(A) in the heading, by inserting ‘‘AND
PREGNANCY-RELATED
SERVICES’’ after ‘‘PRE-
VENTIVE SERVICES’’; and
(B) by inserting before the period at the
end the following: ‘‘or for pregnancy-related
services, if the State provides for coverage of
pregnancy-related assistance for targeted low-
income pregnant women in accordance section
2111’’.
(d) PRESUMPTIVE ELIGIBILITY.—
(1) 
IN
GENERAL.—Section
1920A(b)(3)(A)(i)(III) of the Social Security Act
(42 U.S.C. 1396r–1a(b)(3)(A)(i)(III)) is amended
by inserting ‘‘a child care resource and referral
agency,’’ after ‘‘a State or tribal child support en-
forcement agency,’’.
(2) APPLICATION TO PRESUMPTIVE ELIGIBILITY
FOR PREGNANT WOMEN UNDER MEDICAID.—Section
1920(b) of the Social Security Act (42 U.S.C.
1396r–1(b)) is amended by adding at the end after
and below paragraph (2) the following flush sen-
tence:
‘‘The term ‘qualified provider’ includes a qualified entity
as defined in section 1920A(b)(3).’’.
(3) APPLICATION UNDER TITLE XXI.—
(A) IN GENERAL.—Section 2107(e)(1)(D)
of 
the 
Social 
Security 
Act 
(42 
U.S.C.
1397gg(e)(1)) is amended to read as follows:
‘‘(D) Sections 1920 and 1920A (relating to
presumptive eligibility).’’.
(B) EXCEPTION FROM LIMITATION ON AD-
MINISTRATIVE EXPENSES.—Section 2105(c)(2)
of 
the 
Social 
Security 
Act 
(42 
U.S.C.
1397ee(c)(2)) is amended by adding at the end
the following new subparagraph:
‘‘(C) EXCEPTION FOR PRESUMPTIVE ELI-
GIBILITY
EXPENDITURES.—The 
limitation
under subparagraph (A) on expenditures shall
not apply to expenditures attributable to the
application of section 1920 or 1920A (pursuant
to section 2107(e)(1)(D)), regardless of whether
the child or pregnant woman is determined to
be ineligible for the program under this title or
title XIX.’’.
(e) PROGRAM COORDINATION WITH THE MATERNAL
AND CHILD HEALTH PROGRAM (TITLE V).—
(1) IN GENERAL.—Section 2102(b)(3) of the
Social Security Act (42 U.S.C. 1397bb(b)(3)) is
amended—
(A) in subparagraph (D), by striking
‘‘and’’ at the end;
(B) in subparagraph (E), by striking the
period and inserting ‘‘; and’’; and
(C) by adding at the end the following new
subparagraph:
‘‘(F) that operations and activities under
this title are developed and implemented in con-
sultation and coordination with the program op-
erated by the State under title V in areas in-
cluding outreach and enrollment, benefits and
services, service delivery standards, public
health and social service agency relationships,
and quality assurance and data reporting.’’.
(2) CONFORMING
MEDICAID
AMENDMENT.—
Section 1902(a)(11) of such Act (42 U.S.C.
1396a(a)(11)) is amended—
(A) by striking ‘‘and’’ before ‘‘(C)’’; and
(B) by inserting before the semicolon at
the end the following: ‘‘, and (D) provide that
operations and activities under this title are de-
veloped and implemented in consultation and
coordination with the program operated by the
State under title V in areas including outreach
and enrollment, benefits and services, service
delivery standards, public health and social
service agency relationships, and quality assur-
ance and data reporting’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection take effect on January 1, 2003.
(f) APPLICATION
OF ANNUAL AGGREGATE COST-
SHARING LIMIT.—Section 2103(e)(3)(B) of the Social Se-
curity Act (42 U.S.C. 1397cc(e)(3)(B)) is amended by
adding at the end the following new sentence: ‘‘In the case
of a targeted low-income pregnant woman provided cov-
erage under section 2111, or the parents of a targeted
low-income child provided coverage under this title under
an 1115 waiver or otherwise, the limitation on total an-
nual aggregate cost-sharing described in the preceding
sentence shall be applied to the entire family of such
woman or parents.’’.
(g) EFFECTIVE DATE.—Except as provided in sub-
section (e), the amendments made by this section take ef-
fect on the date of the enactment of this Act and apply
to expenditures incurred on or after that date.
SEC. 103. INCREASE IN SCHIP INCOME ELIGIBILITY.
(a) DEFINITION OF LOW-INCOME CHILD.—Section
2110(c)(4) of the Social Security Act (42 U.S.C. 42
U.S.C. 1397jj(c)(4)) is amended by striking ‘‘200’’ and
inserting ‘‘250’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) applies to child health assistance provided,
and allotments determined under section 2104 of the So-
cial Security Act (42 U.S.C. 1397dd), for fiscal years be-
ginning with fiscal year 2003.
TITLE II—STAY HEALTHY
SEC. 201. ENHANCED FEDERAL MEDICAID MATCH FOR IN-
CREASED EXPENDITURES FOR MEDICAL AS-
SISTANCE FOR CHILDREN.
(a) ENHANCED FMAP.—Section 1905(b) of the So-
cial Security Act (42 U.S.C. 1396d(b)) is amended by add-
ing at the end the following new sentence: ‘‘Notwith-
standing the first sentence of this subsection, in the case
of a State plan that meets at least 7 of the conditions
described in subsection (x)(1) (as determined by the Sec-
retary in consultation with States (including the State
agencies responsible for the administration of this title
and title V), beneficiaries under this title, providers of
services under this title, and advocates for children), with
respect to expenditures described in subsection (x)(2) for
the State for a fiscal year, the Federal medical assistance
percentage is equal to the percentage determined for the
State under subsection (x)(3).’’.
(b) CONDITIONS AND EXPENDITURES DESCRIBED.—
Section 1905 of the Social Security Act (42 U.S.C. 1396d)
is amended by adding at the end the following new sub-
section:
‘‘(x)(1) For purposes of subsection (b), the conditions
described in this subsection are the following:
‘‘(A) HIGHEST SCHIP INCOME ELIGIBILITY.—
The State has a State child health plan under title
XXI which (whether implemented under such title or
under this title) has the highest income eligibility
standard permitted under title XXI as of January 1,
2002, does not limit the acceptance of applications,
and provides benefits to all children in the State who
apply for and meet eligibility standards.
‘‘(B) 
UNIFORM, 
SIMPLIFIED
APPLICATION
FORM.—With respect to children under age 19 (or
such higher age as the State has elected under sec-
tion 1902(l)(1)(D)) who are eligible for medical as-
sistance under section 1902(a)(10)(A), the State
uses the same uniform, simplified application form
(including, if applicable, permitting application other
than in person) for purposes of establishing eligi-
bility for benefits under this title and also under title
XXI.
‘‘(C) COORDINATED ENROLLMENT PROCESS.—
The State has an enrollment process that is coordi-
nated with that under title XXI so that a family
need only interact with a single agency in order to
determine whether a child is eligible for benefits
under this title or title XXI, and that allows for the
transfer of enrollment, without a gap in coverage,
for a child whose income eligibility status changes
but who remains eligible for benefits under either
title.
‘‘(D) SAME VERIFICATION AND REDETERMINA-
TION POLICIES; AUTOMATIC REASSESSMENT OF ELI-
GIBILITY.—With respect to children under age 19
(or such higher age as the State has elected under
section 1902(l)(1)(D)) who are eligible for medical
assistance under section 1902(a)(10)(A), the State
provides for initial eligibility determinations and re-
determinations 
of 
eligibility 
using 
the 
same
verification policies (including with respect to face-
to-face interviews), forms, and frequency as the
State uses for such purposes under title XXI, and,
as part of such redeterminations, provides for the
automatic reassessment of the eligibility of such chil-
dren for assistance under this title and title XXI.
‘‘(E) NO ASSET TEST.—The State does not im-
pose an asset test for eligibility under section
1902(l) or title XXI with respect to children.
‘‘(F) 12-MONTH CONTINUOUS ENROLLMENT.—
The State has elected the option of continuing en-
rollment under section 1902(e)(12) and has elected
a 12-month period under subparagraph (A) of such
section.
‘‘(G) COMPLIANCE WITH OUTSTATIONING RE-
QUIREMENT.—The State is providing for the receipt
and initial processing of applications of children for
medical assistance under this title at facilities de-
fined as disproportionate share hospitals under sec-
tion 1923(a)(1)(A) and Federally-qualified health
centers described in subsection (l)(2)(B) of this sec-
tion consistent with the requirements of section
1902(a)(55).
‘‘(H) NO
WAITING
PERIOD
LONGER
THAN
MONTHS.—The State does not impose a waiting pe-
riod for children who meet eligibility standards to
qualify for assistance under such plan that exceeds
6 months (and may impose a shorter period or no
period) for purposes of complying with regulations
promulgated under title XXI to ensure that the in-
surance provided under the State child health plan
under such title does not substitute for coverage
under group health plans.
‘‘(I) SUFFICIENT PROVIDER PAYMENT RATES.—
The State demonstrates that it is meeting the re-
quirements of section 1902(a)(30)(A) through pay-
ment rates sufficient to enlist enough providers so
that care and pediatric, obstetrical, gynecologic, and
dental services are available under the plan at least
to the extent that such care and services are avail-
able to the general population in the geographic
area.
‘‘(2)(A) For purposes of subsection (b), the expendi-
tures described in this paragraph are expenditures for
medical assistance for children described in subparagraph
(B) for a fiscal year, but only to the extent that such ex-
penditures exceed the base expenditure amount, as defined
in subparagraph (C).
‘‘(B) For purposes of subparagraph (A), the children
described in this subparagraph are—
‘‘(i) individuals who are under 19 years of age
(or such higher age as the State may have elected
under section 1902(l)(1)(D)) who are eligible and
enrolled for medical assistance under this title; and
‘‘(ii) individuals who—
‘‘(I) would be described in clause (i) but
for having family income that exceeds the high-
est income eligibility level applicable to such in-
dividuals under the State plan; and
‘‘(II) would be considered disabled under
section 1614(a)(3)(C) (determined without re-
gard to the reference to age in that section but
for having earnings or deemed income or re-
sources (as determined under title XVI for chil-
dren) that exceed the requirements for receipt
of supplemental security income benefits.
‘‘(C) For purposes of subparagraph (A), the term
‘base expenditure amount’ means the total expenditures
for medical assistance for children described in subpara-
graph (B) for fiscal year 1996.
‘‘(3) For purposes of subsection (b), the Federal med-
ical assistance percentage with respect to expenditures de-
scribed in paragraph (2) for a fiscal year is equal to the
following:
‘‘(A) In the case of a State that meets 7 of the
conditions described in paragraph (1), the Federal
medical assistance percentage (as defined in the first
iture amount related to children described in section
1905(x)(2)(B)(ii) of that Act.
(d) EFFECTIVE DATE.—The amendments made by
subsections (a) and (b) apply to medical assistance pro-
vided on or after October 1, 2001.
SEC. 202. INCREASE IN SCHIP APPROPRIATIONS.
Section 2104(a) of the Social Security Act (42 U.S.C.
1397dd(a)) is amended by striking paragraphs (5)
through (9) and inserting the following:
‘‘(5) for fiscal year 2003, $3,500,000,000;
‘‘(6) for fiscal year 2004, $4,000,000,000;
‘‘(7) for fiscal year 2005, $4,300,000,000;
‘‘(8) for fiscal year 2006, $4,500,000,000;
‘‘(9) for fiscal year 2007, $4,500,000,000;
and’’.
SEC. 203. OPTIONAL COVERAGE OF CHILDREN THROUGH
AGE 20 UNDER THE MEDICAID PROGRAM AND
SCHIP.
(a) MEDICAID.—
(1) IN GENERAL.—Section 1902(l)(1)(D) of the
Social Security Act (42 U.S.C. 1396a(l)(1)(D)) is
amended by inserting ‘‘(or, at the election of a
State, 20 or 21 years of age)’’ after ‘‘19 years of
age’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 1902(e)(3)(A) of such Act (42
U.S.C. 1396a(e)(3)(A)) is amended by inserting
‘‘(or 1 year less than the age the State has
elected under subsection (l)(1)(D))’’ after ‘‘18
years of age’’.
(B) Section 1902(e)(12) of such Act (42
U.S.C. 1396a(e)(12)) is amended by inserting
‘‘or such higher age as the State has elected
under subsection (l)(1)(D)’’ after ‘‘19 years of
age’’.
(C) Section 1920A(b)(1) of such Act (42
U.S.C. 1396r–1a(b)(1)) is amended by insert-
ing ‘‘or such higher age as the State has elected
under section 1902(l)(1)(D)’’ after ‘‘19 years of
age’’.
(D) Section 1928(h)(1) of such Act (42
U.S.C. 1396s(h)(1)) is amended by inserting
‘‘or 1 year less than the age the State has elect-
ed under section 1902(l)(1)(D)’’ before the pe-
riod at the end.
(E) Section 1932(a)(2)(A) of such Act (42
U.S.C. 1396u–2(a)(2)(A)) is amended by in-
serting ‘‘(or such higher age as the State has
elected under section 1902(l)(1)(D))’’ after ‘‘19
years of age’’.
(b) TITLE XXI.—Section 2110(c)(1) of such Act (42
U.S.C. 1397jj(c)(1)) is amended by inserting ‘‘(or such
higher age as the State has elected under section
1902(l)(1)(D))’’.
(c) EFFECTIVE DATE.—The amendments made by
this section take effect on October 1, 2002, and apply to
medical assistance and child health assistance provided on
or after such date.
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