139 
(2) DISREGARD OF PAYMENTS.—Payments pro-
vided to a State in accordance with this subsection 
shall be disregarded for purposes of applying sub-
sections (f) and (g) of section 1108 of the Social Se-
curity Act (42 U.S.C. 1308). 
(g) VERIFICATION OF STATUS AS A KATRINA SUR-
VIVOR.— 
(1) IN GENERAL.—The State shall make a good 
faith effort to verify the status of an individual who 
is enrolled in the State Medicaid plan as a DRM-eli-
gible Katrina Survivor under the provisions of this 
section. Such effort shall not delay the determina-
tion of the eligibility of the Survivor for DRM assist-
ance under this section. 
(2) EVIDENCE OF VERIFICATION.—A State may 
satisfy the verification requirement under subpara-
graph (A) with respect to an individual by showing 
that the State providing DRM assistance obtained 
information from the Social Security Administration, 
the Internal Revenue Service, or the State Medicaid 
Agency for the State from which individual is from 
(if the individual was not a resident of such State 
on any day during the week preceding August 28, 
2005). 
(h) PENALTY FOR FRAUDULENT APPLICATIONS.—
140 
(1) INDIVIDUAL
LIABLE
FOR
COSTS.—If a 
State, as the result of verification activities con-
ducted under subsection (g) or otherwise, determines 
after a fair hearing that an individual has knowingly 
made a false self-attestation described in subsection 
(c)(1)(B), the State may, subject to paragraph (2), 
seek recovery from the individual for the full amount 
of the cost of DRM assistance provided to the indi-
vidual under this section. 
(2) EXCEPTION.—The Secretary shall exempt a 
State from seeking recovery under paragraph (1) if 
the Secretary determines that it would not be cost- 
effective for the State to do so. 
(3) REIMBURSEMENT TO THE FEDERAL GOV-
ERNMENT.—Any amounts recovered by a State in 
accordance with this subsection shall be returned to 
the Federal government. 
(i) EXEMPTION FROM ERROR RATE PENALTIES.—All 
payments attributable to providing DRM assistance in ac-
cordance with this section shall be disregarded for pur-
poses of section 1903(u) of the Social Security Act (42 
U.S.C. 1396b(u)). 
(j) PROVIDER PAYMENT RATES.—In the case of any 
DRM assistance provided in accordance with this section 
to a DRM-eligible Katrina Survivor that is covered under
141 
the State medicaid plan (as applied without regard to this 
section) the State shall pay a provider of such assistance 
the same payment rate as the State would otherwise pay 
for the assistance if the assistance were provided under 
the State medicaid plan (or, if no such payment rate ap-
plies under the State medicaid plan, the usual and cus-
tomary prevailing rate for the item or service for the com-
munity in which it is provided). 
(k) APPLICATION TO INDIVIDUALS ELIGIBLE FOR 
MEDICAL ASSISTANCE.—Nothing in this section shall be 
construed as affecting any rights accorded to an individual 
who is a recipient of medical assistance under a State 
medicaid plan who is determined to be a DRM-eligible 
Katrina Survivor but the provision of DRM assistance to 
such individual shall be limited to the provision of such 
assistance in accordance with this section. 
SEC. 323. TARGETED MEDICAID RELIEF FOR DIRECT IM-
PACT PARISHES. 
(a) 100 PERCENT FEDERAL MATCHING PAYMENTS 
FOR MEDICAL ASSISTANCE PROVIDED IN DIRECT IMPACT 
PARISH.— 
(1) IN
GENERAL.—Notwithstanding section 
1905(b) of the Social Security Act (42 U.S.C. 
1396d(b)), for items and services furnished during 
the period that begins on August 28, 2005, and ends
142 
on December 31, 2006, the Federal medical assist-
ance percentage for providing medical assistance 
under a State medicaid plan under title XIX of the 
Social Security Act to any individual, including a 
Katrina Survivor, residing in a parish of the State 
of Louisiana described in subsection (c) shall be 100 
percent. 
(2) APPLICATION TO ENHANCED FMAP.—The 
100 percent Federal medical assistance percentage 
applicable under subsection (a) shall also apply for 
purposes of determining the enhanced FMAP (as de-
fined in section 2105(b) of the Social Security Act 
(42 U.S.C. 1397ee(b)) for child health assistance 
provided under a State child health plan under title 
XXI of such Act in such a parish or county during 
the period described in such subsection. 
(b) MORATORIUM ON REDETERMINATIONS.—During 
the DRM coverage period, the State of Louisiana shall not 
be required to conduct eligibility redeterminations under 
the State’s medicaid plan. 
(c) PARISH OR COUNTY DESCRIBED.—For purposes 
of subsection (a), a parish or county described in this sub-
section is a parish or county for which a major disaster 
has been declared in accordance with section 401 of the 
Robert T. Stafford Disaster Relief and Emergency Assist-
143 
ance Act (42 U.S.C. 5170) as a result of Hurricane 
Katrina and which the President has determined, as of 
September 14, 2005, warrant individual or public assist-
ance from the Federal Government under such Act. 
SEC. 324. AUTHORITY TO WAIVE REQUIREMENTS DURING 
NATIONAL EMERGENCIES WITH RESPECT TO 
EVACUEES FROM AN EMERGENCY AREA. 
(a) IN GENERAL.—Section 1135(g)(1) of the Social 
Security Act (42 U.S.C. 1320b–5(g)(1)) is amended by 
adding at the end the following: 
‘‘Any geographical area in which the Secretary de-
termines there are a significant number of evacuees 
from an area that is considered to be an emergency 
area under the preceding sentence shall be consid-
ered to be an ‘emergency area’ for purposes of this 
section.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect as if enacted on August 
28, 2005. 
SEC. 325. EMERGENCY ASSISTANCE FOR STATES WITH RE-
SPECT TO THE FEDERAL MEDICAL ASSIST-
ANCE PERCENTAGE FOR FISCAL YEAR 2006. 
If the Federal medical assistance percentage (as de-
fined in section 1905(b) of the Social Security Act (42 
U.S.C. 1396d(b))) determined for a State for fiscal year
144 
2006 is less than the Federal medical assistance percent-
age determined for the State for fiscal year 2005, the Fed-
eral medical assistance percentage for the State for fiscal 
year 2005 shall apply to the State for fiscal year 2006 
for purposes of titles XIX and XXI of the Social Security 
Act (42 U.S.C. 1396 et seq., 1397aa et seq.). 
SEC. 326. EMERGENCY ASSISTANCE TO MEDICARE BENE-
FICIARIES. 
(a) EXCLUSION
OF DRM COVERAGE PERIOD
IN 
COMPUTING MEDICARE PART B LATE ENROLLMENT PE-
RIOD.—In applying the first sentence of section 1839(b) 
of the Social Security Act (42 U.S.C. 1395r(b)) in the case 
of an individual who, on any day during the week pre-
ceding August 28, 2005, had a residence in a direct im-
pact parish, there shall not be taken into account any 
month any part of which is within the DRM coverage pe-
riod. 
(b) WRITTEN PLAN ON TRANSITION OF CERTAIN 
FULL-BENEFIT DUAL ELIGIBLE INDIVIDUALS TO PRE-
SCRIPTION DRUG COVERAGE
UNDER MEDICARE PART 
D.—Not later than October 7, 2005, the Secretary of 
Health and Human Services shall submit to Congress a 
written plan on how the Secretary will provide for the 
transition of coverage of prescription drugs for full-benefit 
dual eligible individuals (as defined in section 1935(c)(6)
145 
of the Social Security Act (42 U.S.C. 1396u–5(c)(6)) who, 
on any day during the week preceding August 28, 2005, 
had a residence in a direct impact parish, from the med-
icaid program under title XIX of such Act to the medicare 
program under part D of title XVIII of such Act. 
SEC. 327. 80 PERCENT FEDERAL MATCHING PAYMENTS 
UNDER 
MEDICAID 
FOR 
UNCOMPENSATED 
CARE PROVIDED TO SURVIVORS OF HURRI-
CANE KATRINA. 
(a) IN GENERAL.—Notwithstanding section 1903(a) 
or 1905(b) of the Social Security Act (42 U.S.C. 
1396a(a), 1396d(b)), during the DRM coverage period 
that begins on April 30, 2005— 
(1) expenditures described in subsection (b) 
shall be treated as medical assistance provided under 
the State Medicaid plan of the State of Louisiana; 
and 
(2) the Federal medical assistance percentage 
for such expenditures, and for any administrative 
costs that are attributable to such expenditures, 
shall be 80 percent. 
(b) EXPENDITURES DESCRIBED.—For purposes of 
subsection (a), the expenditures in this subsection are the 
following:
146 
(1) Expenditures of the State of Louisiana for 
reimbursing a hospital located in the State of Lou-
isiana for any uncompensated care provided to sur-
vivors of Hurricane Katrina. 
(2) Expenditures of the State of Louisiana for 
reimbursing a physician whose practice is located in 
the State of Louisiana for any uncompensated costs 
incurred as a result of providing items or services to 
survivors of Hurricane Katrina. 
(3) Expenditures of the State of Louisiana for 
reimbursing a federally-qualified health center or 
rural health clinic located in the State of Louisiana 
for any uncompensated costs incurred as a result of 
providing items or services to survivors of Hurricane 
Katrina. 
(c) CRITERIA FOR DISBURSING OF PAYMENTS.—The 
head of the Louisiana Department of Health and Hos-
pitals shall establish criteria for making the reimburse-
ments described in subsection (b). 
SEC. 328. DISASTER RELIEF FUND FOR PAYMENTS FOR PRI-
VATE HEALTH INSURANCE COVERAGE. 
(a) ESTABLISHMENT.—There is established in the 
Treasury of the United States the Disaster Relief Fund 
(in this section referred to as the ‘‘Fund’’) which—
147 
(1) shall be administered by the Secretary of 
Health and Human Services (in this section referred 
to as the ‘‘Secretary’’); and 
(2) shall consist of amounts made available 
under subsection (e). 
(b) USE OF AMOUNTS IN FUND.—Amounts in the 
Fund shall be used by the Secretary to make payments 
to State insurance commissioners for the purpose of mak-
ing payments to health insurance issuers— 
(1) on behalf of individuals who had coverage 
as of August 29, 2005 for such individual’s share of 
their health insurance premium; and 
(2) on behalf of qualified employers for the em-
ployer share of their employee’s health insurance 
premiums, but only with respect to the days on 
which the employer meets the definition under sub-
section (c). 
(c) QUALIFIED EMPLOYER DEFINED.—For purposes 
of subsection (b)(2), the term ‘‘qualified employer’’ means 
any employer— 
(1) which conducted an active trade or business 
on August 28, 2005, in a Hurricane Katrina dis-
aster area; and 
(2) with respect to whom the trade or business 
described in paragraph (1)—
148 
(A) is inoperable on any day during the 
disaster relief period as a result of damage sus-
tained in connection with Hurricane Katrina; or 
(B) is not paying salary or benefits to em-
ployees on any day during the disaster relief pe-
riod as a result of damage sustained in connec-
tion with Hurricane Katrina. 
(d) APPROPRIATION.—Out of any money in the 
Treasury not otherwise appropriated, there is appro-
priated to the Fund, $400,000,000 for fiscal year 2005, 
to remain available until expended. 
SEC. 329. ELIGIBILITY OF KATRINA SURVIVORS FOR RE-
FUNDABLE CREDIT FOR HEALTH INSURANCE 
COSTS AND ASSISTANCE WITH HEALTH IN-
SURANCE 
COVERAGE 
UNDER 
NATIONAL 
EMERGENCY GRANTS. 
Notwithstanding sections 35, 7527, and 6050T of the 
Internal Revenue Code of 1986, and section 173(f) of the 
Workforce Investment Act of 1998 (29 U.S.C. 2918(f)), 
during the disaster relief period, for purposes of applying 
such sections— 
(1) a Katrina Survivor (as defined in section 
323(a)(1)) shall be deemed to be an eligible indi-
vidual; and
149 
(2) section 35(a) of such Code shall be applied 
with respect to a Katrina Survivor by substituting 
‘‘100 percent’’ for ‘‘65 percent’’. 
SEC. 330A. NATIONAL HEALTH SERVICE CORPS. 
(a) DESIGNATION
AS
HEALTH
PROFESSIONAL 
SHORTAGE AREA.—Notwithstanding section 332(a)(1) of 
the Public Health Service Act (42 U.S.C. 254e(a)(1)), an 
area in which the President has declared that a major dis-
aster exists, in accordance with section 401 of the Robert 
T. Stafford Disaster Relief and Emergency Assistance Act 
(42 U.S.C. 5170) related to Hurricane Katrina, shall be 
designated as a health professional shortage area as de-
scribed in such section 332. 
(b) SCHOLARSHIP PROGRAMS.—Notwithstanding sec-
tion 338A(d)(2) of the Public Health Service Act (42 
U.S.C. 254l(d)(2)), in providing contracts under the 
Scholarship Program under subpart III of part D of title 
III of the Public Health Service Act (42 U.S.C. 254l et 
seq.), the Secretary of Health and Human Services shall 
give first priority to any application from an individual 
who agrees to serve in a health professional shortage area 
affected by Hurricane Katrina, as described in subsection 
(a). 
(c) LOAN REPAYMENT PROGRAMS.—The Secretary 
of Health and Human Services shall operate a loan repay-
150 
ment program to encourage eligible health care profes-
sionals to move to and continue to serve in a health profes-
sional shortage area affected by Hurricane Katrina, as de-
scribed in subsection (a), in the same manner and subject 
to the same requirements and restrictions as the Loan Re-
payment Program operated by the Secretary under sub-
part III of part D of title III of the Public Health Service 
Act (42 U.S.C. 254l et seq.), except that the total amount 
that the Secretary may pay for loan repayment on behalf 
of an individual participating in the loan repayment pro-
gram under this subsection shall be not more than 
$50,000 for 2 years of obligated service by the individual. 
SEC. 300A. COMMUNITY HEALTH CENTER GRANTS. 
(a) PRIORITY.—In awarding grants under section 
330 of the Public Health Service Act (42 U.S.C. 254b), 
the Secretary of Health and Human Services shall give 
priority to applicants applying on behalf of a community 
health center located in an area in which the President 
has declared that a major disaster exists, in accordance 
with section 401 of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (42 U.S.C. 5170) related 
to Hurricane Katrina. 
(b) WAIVER.—In awarding and administering grants 
under section 330 of the Public Health Service Act (42 
U.S.C. 254b) relating to community health centers located