I
107TH CONGRESS
1ST SESSION
H. R. 2775
To amend title XIX of the Social Security Act to revise and simplify the
transitional medical assistance (TMA) program.
IN THE HOUSE OF REPRESENTATIVES
AUGUST 2, 2001
Mr. LEVIN (for himself, Mr. CASTLE, and Mr. WAXMAN) introduced the
following bill; which was referred to the Committee on Energy and Commerce
A BILL
To amend title XIX of the Social Security Act to revise
and simplify the transitional medical assistance (TMA)
program.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Transitional Medical
Assistance Improvement Act of 2001’’.
SEC. 2. REVISION AND SIMPLIFICATION OF THE TRANSI-
TIONAL 
MEDICAL 
ASSISTANCE 
PROGRAM
(TMA).
(a) OPTION OF CONTINUOUS ELIGIBILITY FOR 12
MONTHS; OPTION OF CONTINUING COVERAGE FOR UP TO
AN ADDITIONAL YEAR.—
(1) OPTION OF CONTINUOUS ELIGIBILITY FOR
12 MONTHS BY MAKING REPORTING REQUIREMENTS
OPTIONAL.—Section 1925(b) of the Social Security
Act (42 U.S.C. 1396r–6(b)) is amended—
(A) in paragraph (1), by inserting ‘‘, at the
option of a State,’’ after ‘‘and which’’;
(B) in paragraph (2)(A), by inserting
‘‘Subject to subparagraph (C)—’’ after ‘‘(A)
NOTICES.—’’;
(C) in paragraph (2)(B), by inserting
‘‘Subject to subparagraph (C)—’’ after ‘‘(B)
REPORTING REQUIREMENTS.—’’;
(D) by adding at the end the following new
subparagraph:
‘‘(C) STATE
OPTION
TO
WAIVE
NOTICE
AND
REPORTING
REQUIREMENTS.—A State
may waive some or all of the reporting require-
ments under clauses (i) and (ii) of subpara-
graph (B). Insofar as it waives such a reporting
requirement, the State need not provide for a
notice under subparagraph (A) relating to such
requirement.’’; and
(E) in paragraph (3)(A)(iii), by inserting
‘‘the State has not waived under paragraph
(2)(C) the reporting requirement with respect
to such month under paragraph (2)(B) and if’’
after ‘‘6-month period if’’.
(2) STATE
OPTION
TO
EXTEND
ELIGIBILITY
FOR LOW-INCOME INDIVIDUALS FOR UP TO 12 ADDI-
TIONAL
MONTHS.—Section 1925 of such Act (42
U.S.C. 1396r–6) is further amended—
(A) 
by 
redesignating 
subsections 
(c)
through (f) as subsections (d) through (g); and
(B) by inserting after subsection (b) the
following new subsection:
‘‘(c) STATE OPTION OF UP TO 12 MONTHS OF ADDI-
TIONAL ELIGIBILITY.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of this title, each State plan approved
under this title may provide, at the option of the
State, that the State shall offer to each family which
received assistance during the entire 6-month period
under subsection (b) and which meets the applicable
requirement of paragraph (2), in the last month of
the period the option of extending coverage under
this subsection for the succeeding period not to ex-
ceed 12 months.
‘‘(2) INCOME RESTRICTION.—The option under
paragraph (1) shall not be made available to a fam-
ily for a succeeding period unless the State deter-
mines that the family’s average gross monthly earn-
ings (less such costs for such child care as is nec-
essary for the employment of the caretaker relative)
as of the end of the 6-month period under sub-
section (b) does not exceed 185 percent of the offi-
cial poverty line (as defined by the Office of Man-
agement and Budget, and revised annually in ac-
cordance with section 673(2) of the Omnibus Budget
Reconciliation Act of 1981) applicable to a family of
the size involved.
‘‘(3) APPLICATION
OF
EXTENSION
RULES.—
The provisions of paragraphs (2), (3), (4), and (5)
of subsection (b) shall apply to the extension pro-
vided under this subsection in the same manner as
they apply to the extension provided under sub-
section (b)(1), except that for purposes of this
subsection—
‘‘(A) any reference to a 6-month period
under subsection (b)(1) is deemed a reference
to the extension period provided under para-
graph (1) and any deadlines for any notices or
reporting and the premium payment periods
shall be modified to correspond to the appro-
priate calendar quarters of coverage provided
under this subsection; and
‘‘(B) any reference to a provision of sub-
section (a) or (b) is deemed a reference to the
corresponding provision of subsection (b) or of
this subsection, respectively.’’.
(b) STATE OPTION TO WAIVE RECEIPT OF MED-
ICAID FOR 3 OF PREVIOUS 6 MONTHS TO QUALIFY FOR
TMA.—Section 1925(a)(1) of such Act (42 U.S.C. 1396r–
6(a)(1)) is amended by adding at the end the following:
‘‘A State may, at its option, also apply the previous sen-
tence in the case of a family that was receiving such aid
for fewer than 3 months, or that had applied for and was
eligible for such aid for fewer than 3 months, during the
6 immediately preceding months described in such sen-
tence.’’.
(c) ELIMINATION OF SUNSET FOR TMA.—
(1) Subsection (g) of section 1925 of such Act
(42 U.S.C. 1396r–6), as redesignated under sub-
section (a)(2), is repealed.
(2) Section 1902(e)(1) of such Act (42 U.S.C.
1396a(e)(1)) 
is 
amended 
by 
striking 
‘‘(A)