‘‘(II) by substituting ‘State child 
health plan under title XXI’ for ‘State 
plan’.’’. 
(2) TECHNICAL AMENDMENT.— 
(A) IN GENERAL.—Section 5122(b) of divi-
sion FF of the Consolidated Appropriations 
Act, 2023 (Public Law 117–328) is amended by 
striking paragraph (1). 
(B) EFFECTIVE
DATE.—The amendment 
made by this paragraph shall take effect as if 
included in the enactment of the Consolidated 
Appropriations Act, 2023 (Public Law 117– 
328). 
(c) INCREASED FEDERAL MATCH
FOR MENTAL 
HEALTH
AND SUBSTANCE USE DISORDER SERVICES 
FURNISHED TO INCARCERATED INDIVIDUALS.— 
(1) MEDICAID.—Section 1905 of the Social Se-
curity Act (42 U.S.C. 1396d) is amended— 
(A) in subsection (b), by striking ‘‘and 
(ii)’’ and inserting ‘‘(ii), and (jj)’’; and 
(B) by adding at the end the following new 
subsection: 
‘‘(jj) INCREASED FMAP FOR MENTAL HEALTH AND 
SUBSTANCE USE SERVICES FURNISHED TO INMATES.— 
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‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of this title except for paragraph (3), the 
Federal medical assistance percentage for a State, 
with respect to amounts expended by the State for 
medical assistance for mental health and substance 
use disorder services furnished to an eligible inmate 
(as such terms are defined in section 1902(nn)) 
shall be equal to 100 percent. 
‘‘(2) EXCLUSION OF EXPENDITURES FROM TER-
RITORIAL CAPS.—Any payment made to a territory 
for expenditures for medical assistance that are sub-
ject to the Federal medical assistance percentage 
specified under paragraph (1) shall not be taken into 
account for purposes of applying payment limits 
under subsections (f) and (g) of section 1108. 
‘‘(3) REQUIREMENT TO REINVEST ADDITIONAL 
FUNDS.—As a condition for the receipt of the in-
crease under paragraph (1) to the Federal medical 
assistance percentage of a State, the State shall 
demonstrate to the satisfaction of the Secretary that 
the State will use the Federal funds attributable to 
such increase only for the following purposes: 
‘‘(A) To improve health information tech-
nology and data sharing between State Med-
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icaid programs, jails and prisons, and commu-
nity-based providers and support organizations. 
‘‘(B) To increase the treatment capacity of 
community-based providers who are particularly 
attuned to, and able to serve, the specific needs 
of individuals who are involved with the justice 
system or at risk of becoming involved in the 
justice system. 
‘‘(C) To expand or enhance community- 
based reentry services and supports provided by 
the State to incarcerated and formerly incarcer-
ated individuals, including services and supports 
designed to meet the health-related social needs 
of such individuals.’’. 
(2) CHIP.— 
(A) IN GENERAL.—Section 2105 of the So-
cial Security Act (42 U.S.C. 1397ee) is amend-
ed— 
(i) in subsection (b), by striking 
‘‘(11)’’ and inserting ‘‘(11), (12), and 
(13)’’; and 
(ii) in subsection (c), by adding at the 
end the following new paragraph: 
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‘‘(13) ENHANCED PAYMENT FOR COVERAGE OF 
MENTAL HEALTH AND SUBSTANCE USE DISORDER 
SERVICES.— 
‘‘(A) IN GENERAL.—Notwithstanding sub-
section (b) and subject to subparagraph (B), 
the enhanced FMAP for a State with respect to 
payments under subsection (a) for expenditures 
under the State child health plan (or a waiver 
of such plan) for mental health or substance 
use disorder services furnished to a targeted 
low-income child or a targeted low-income preg-
nant woman who is an eligible inmate (as such 
term is defined in section 2110(b)(7)(B)(ii)) 
shall be equal to 100 percent. 
‘‘(B) REQUIREMENT TO REINVEST ADDI-
TIONAL FUNDS.—The requirement described in 
paragraph (3) of section 1905(jj) shall apply to 
Federal funds attributable to an increase in the 
enhanced Federal medical assistance percentage 
of a State under subparagraph (A) in the same 
manner as such requirement applies to Federal 
funds attributable to an increase to the Federal 
medical assistance percentage of a State under 
paragraph (1) of such section.’’. 
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(B) ADJUSTING STATE CHIP ALLOTMENTS 
TO ACCOUNT FOR INCREASED PAYMENTS FOR 
COVERAGE
OF
MENTAL
HEALTH
AND
SUB-
STANCE USE SERVICES FURNISHED TO ELIGI-
BLE INMATES.—Section 2104(m) of the Social 
Security Act (42 U.S.C. 1397dd(m)) is amend-
ed— 
(i) in paragraph (2)(B), in the matter 
preceding clause (i), by striking ‘‘and 
(12)’’ and inserting ‘‘(12), and (13)’’; and 
(ii) by adding at the end the following 
new paragraph: 
‘‘(13) ADJUSTING
ALLOTMENTS
TO
ACCOUNT 
FOR
INCREASED
FEDERAL
PAYMENTS
FOR
COV-
ERAGE OF MENTAL HEALTH AND SUBSTANCE USE 
SERVICES FOR ELIGIBLE INMATES.—If a State, com-
monwealth, or territory receives payment for a fiscal 
year under subsection (a) of section 2105 for ex-
penditures that are subject to the enhanced FMAP 
specified under subsection (c)(13) of such section, 
the amount of the allotment determined for the 
State, commonwealth, or territory under this sub-
section— 
‘‘(A) for such fiscal year shall be increased 
by the projected expenditures for such year by 
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the State, commonwealth, or territory under the 
State child health plan (or a waiver of such 
plan) for mental health and substance use dis-
order services furnished to eligible inmates (as 
defined in section 2110(b)(7)(B)(ii)); and 
‘‘(B) once actual expenditures are available 
in the subsequent fiscal year, the fiscal year al-
lotment that was adjusted by the amount de-
scribed in subparagraph (A) shall be adjusted 
on the basis of the difference between— 
‘‘(i) such projected amount of expend-
itures described in subparagraph (A) for 
such fiscal year described in such subpara-
graph by the State, commonwealth, or ter-
ritory; and 
‘‘(ii) the actual amount of expendi-
tures for such fiscal year described in sub-
paragraph (A) by the State, common-
wealth, or territory under the State child 
health plan (or waiver of such plan) for 
mental health and substance use disorder 
services furnished to eligible inmates (as 
defined in section 2110(b)(7)(B)(ii)).’’. 
(d) CONFORMING AMENDMENTS.— 
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(1) Section 1905(a) of the Social Security Act 
(42 U.S.C. 1396d(a)), as amended by subsection (a), 
is amended, in the matter following paragraph (31), 
by striking ‘‘set forth in the subdivision (B) fol-
lowing paragraph (30) of the first sentence of this 
subsection’’ and inserting ‘‘set forth in the portion 
of the first sentence of this subsection that follows 
the last numbered paragraph of this subsection’’. 
(2) Section 5122(a)(1) of division FF of the 
Consolidated Appropriations Act, 2023 (Public Law 
117–328) is amended by striking ‘‘case manage-
ment’’ and inserting ‘‘targeted case management 
services’’. 
(e) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply with respect to medical assistance, child 
health assistance, and pregnancy-related assistance 
provided on or after January 1, 2023. 
(2) EFFECTIVE DATE OF CONFORMING AMEND-
MENT.—The amendment made by paragraph (2) of 
subsection (d) shall take effect as if included in the 
enactment of the Consolidated Appropriations Act, 
2023 (Public Law 117–328). 
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SEC. 3. REPORT BY COMPTROLLER GENERAL. 
Not later than the date that is 5 years after the date 
of enactment of this Act, the Comptroller General of the 
United States shall submit to Congress a report con-
taining available information regarding incarcerated indi-
viduals that receive medical assistance or child health as-
sistance under a State plan under title XIX or XXI of 
the Social Security Act (42 U.S.C. 1396 et seq., 1397aa 
et seq.) (as applicable) as a result of a State electing to 
provide coverage to eligible inmates pursuant to the 
amendments to such titles made by section 2. The infor-
mation contained in the report may include information 
such as the following: 
(1) The number of such incarcerated individ-
uals. 
(2) The access of such incarcerated individuals 
to health care services, including specialty care, and 
health care providers. 
(3) The quality of health care services provided 
to incarcerated individuals. 
(4) Any impact of coverage under such a State 
plan on recidivism. 
(5) The percentage of such incarcerated individ-
uals who, upon release, are— 
(A) enrolled under such a State plan; 
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(B) connected to a provider in their com-
munity of mental health, substance use dis-
order, or primary care services; and 
(C) receiving medication-assisted treatment 
for the treatment of a substance use disorder. 
(6) Any other information the Comptroller Gen-
eral determines necessary regarding the health of in-
carcerated individuals. 
Æ 
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