(1) such assistance may be provided without re-
gard to—
(A) whether the State otherwise has elect-
ed to make medical assistance available for
COBRA 
premiums 
under 
section
1902(a)(10)(F) of the Social Security Act (42
U.S.C. 1396a(a)(10)(F)); or
(B) the conditions otherwise imposed for
the provision of medical assistance for such
COBRA premiums under clause (XII) of the
matter following section 1902(a)(10)(G) of the
Social 
Security 
Act 
(42 
U.S.C.
1396a(a)(10)(G)), 
or 
paragraphs 
(1)(B),
(1)(C), (1)(D), and (4) of section 1902(u) of
such Act (42 U.S.C. 1396a(u)); and
(2) paragraphs (1), (2), (4), (5), (7), and (8)
of subsection (c) of section 202 apply to such assist-
ance in the same manner as such paragraphs apply
to the provision of medical assistance under that sec-
tion.
(d) SUNSET.—No medical assistance may be provided
under this section after December 31, 2002.
SEC. 204. TEMPORARY INCREASES OF MEDICAID FMAP FOR
FISCAL YEAR 2002.
(a) PERMITTING MAINTENANCE OF FISCAL YEAR
2001 FMAP.—Notwithstanding any other provision of
law, but subject to subsection (d), if the FMAP deter-
mined without regard to this section for a State for fiscal
year 2002 is less than the FMAP as so determined for
fiscal year 2001, the FMAP for the State for fiscal year
2001 shall be substituted for the State’s FMAP for fiscal
year 2002, before the application of this section.
(b) GENERAL
1.50 PERCENTAGE
POINTS
IN-
CREASE.—Notwithstanding any other provision of law, but
subject to subsections (d) and (e), for each State for each
calendar quarter in fiscal year 2002, the FMAP (taking
into account the application of subsection (a)) shall be in-
creased by 1.50 percentage points.
(c) FURTHER INCREASE FOR STATES WITH HIGH
UNEMPLOYMENT RATES.—
(1) IN GENERAL.—Notwithstanding any other
provision of law, but subject to subsections (d) and
(e), the FMAP for a high unemployment State for
a calendar quarter in fiscal year 2002 (and any sub-
sequent calendar quarter in such fiscal year regard-
less of whether the State continues to be a high un-
employment State for a calendar quarter in such fis-
cal year) shall be increased (after the application of
subsections (a) and (b)) by 1.50 percentage points.
(2) HIGH UNEMPLOYMENT STATE.—For pur-
poses of this subsection, a State is a high unemploy-
ment State for a calendar quarter if, for any 3 con-
secutive months beginning on or after June 2001
and ending with the second month before the begin-
ning of the calendar quarter, the State has an unem-
ployment rate that exceeds the national average un-
employment rate. Such unemployment rates for such
months shall be determined based on publications of
the Bureau of Labor Statistics of the Department of
Labor.
(d) 1-YEAR INCREASE IN CAP ON MEDICAID PAY-
MENTS TO TERRITORIES.—Notwithstanding any other
provision of law, with respect to fiscal year 2002, the
amounts otherwise determined for Puerto Rico, the Virgin
Islands, Guam, the Northern Mariana Islands, and Amer-
ican Samoa under section 1108 of the Social Security Act
(42 U.S.C. 1308) shall each be increased by an amount
equal to 3.093 percentage points of such amounts.
(e) SCOPE OF APPLICATION.—The increases in the
FMAP for a State under this section shall apply only for
purposes of title XIX of the Social Security Act and shall
not apply with respect to—
(1) disproportionate share hospital payments
described in section 1923 of such Act (42 U.S.C.
1396r–4); and
(2) payments under titles IV and XXI of such
Act (42 U.S.C. 601 et seq. and 1397aa et seq.).
(f) STATE ELIGIBILITY.—A State is eligible for an
increase in its FMAP under subsection (b) or (c) only if
the eligibility under its State plan under title XIX of the
Social Security Act (including any waiver under such title
or under section 1115 of such Act (42 U.S.C. 1315)) is
no more restrictive than the eligibility under such plan (or
waiver) as in effect on October 1, 2001.
SEC. 205. DEFINITIONS.
In this title:
(1) ADMINISTRATOR.—The term ‘‘adminis-
trator’’ has the meaning given that term in section
3(16)(A) of the Employee Retirement Income Secu-
rity Act of 1974 (29 U.S.C. 1002(16)(A)).
(2) COBRA CONTINUATION COVERAGE.—
(A) IN
GENERAL.—The term ‘‘COBRA
continuation coverage’’ means coverage under a
group health plan provided by an employer pur-
suant to title XXII of the Public Health Service
Act, section 4980B of the Internal Revenue
Code of 1986, part 6 of subtitle B of title I of
the Employee Retirement Income Security Act
of 1974, or section 8905a of title 5, United
States Code.
(B) APPLICATION
TO
EMPLOYERS
IN
STATES
REQUIRING
SUCH
COVERAGE.—Such
term includes such coverage provided by an em-
ployer in a State that has enacted a law that
requires the employer to provide such coverage
even though the employer would not otherwise
be required to provide such coverage under the
provisions of law referred to in subparagraph
(A).
(3) COVERED EMPLOYEE.—The term ‘‘covered
employee’’ has the meaning given that term in sec-
tion 607(2) of the Employee Retirement Income Se-
curity Act of 1974 (29 U.S.C. 1167(2)).
(4) FEDERAL
PUBLIC
BENEFIT.—The term
‘‘Federal public benefit’’ has the meaning given that
term in section 401(c) of the Personal Responsibility
and Work Opportunity Reconciliation Act of 1996 (8
U.S.C. 1611(c)).
(5) FMAP.—The term ‘‘FMAP’’ means the
Federal medical assistance percentage, as defined in
section 1905(b) of the Social Security Act (42
U.S.C. 1396d(b)).