(B) has a physical or mental condition,
disease, disorder (including a congenital birth
defect), injury, or developmental disability that
was incurred before the individual attained such
age; and
(C) is reasonably expected, but for the re-
ceipt of medical assistance under the State
medicaid plan, to reach the level of disability
defined under section 1614(a)(3) of the Social
Security Act (42 U.S.C. 1382c(a)(3)), (deter-
mined without regard to the reference to age in
subparagraph (C) of that section).
(2) EXCEPTION.—Such term does not include
an individual who would be considered disabled
under section 1614(a)(3)(C) of the Social Security
Act (42 U.S.C. 1382c(a)(3)(C)) (determined without
regard to the reference to age in that section).
(c) APPROVAL OF DEMONSTRATION PROJECTS.—
(1) IN GENERAL.—Subject to paragraph (3),
the Secretary shall approve applications under sub-
section (a) that meet the requirements of paragraph
(2) and such additional terms and conditions as the
Secretary may require. The Secretary may waive the
requirement of section 1902(a)(1) of the Social Se-
curity Act (42 U.S.C. 1396a(a)(1)) to allow for sub-
State demonstrations.
(2) TERMS AND CONDITIONS OF DEMONSTRA-
TION PROJECTS.—The Secretary may not approve a
demonstration project under this section unless the
State provides assurances satisfactory to the Sec-
retary that the following conditions are or will be
met:
(A) 
INDEPENDENT
EVALUATION.—The
State provides for an independent evaluation of
the project to be conducted during fiscal year
2005.
(B) CONSULTATION
FOR
DEVELOPMENT
OF CRITERIA.—The State consults with appro-
priate pediatric health professionals in estab-
lishing the criteria for determining whether a
child has a potentially severe disability.
(C) ANNUAL REPORT.—The State submits
an annual report to the Secretary (in a uniform
form and manner established by the Secretary)
on the use of funds provided under the grant
that includes the following:
(i) Enrollment and financial statistics
on—
(I) the total number of children
with a potentially severe disability en-
rolled in the demonstration project,
disaggregated by disability;
(II) the services provided by cat-
egory or code and the cost of each
service so categorized or coded; and
(III) the number of children en-
rolled in the demonstration project
who also receive services through pri-
vate insurance.
(ii) With respect to the report sub-
mitted for fiscal year 2005, the results of
the 
independent 
evaluation 
conducted
under subparagraph (A).
(iii) Such additional information as
the Secretary may require.
(3) LIMITATIONS ON FEDERAL FUNDING.—
(A) APPROPRIATION.—
(i) IN GENERAL.—Out of any funds in
the Treasury not otherwise appropriated,
there is appropriated to carry out this sec-
tion $16,667,000 for each of fiscal years
2001 through 2006.
(ii) BUDGET AUTHORITY.—Clause (i)
constitutes budget authority in advance of
appropriations Acts and represents the ob-
ligation of the Federal Government to pro-
vide for the payment of the amounts ap-
propriated under clause (i).
(B) LIMITATION
ON
PAYMENTS.—In no
case may—
(i) the aggregate amount of payments
made by the Secretary to States under this
section exceed $100,000,000;
(ii) the aggregate amount of payments
made by the Secretary to States for ad-
ministrative expenses relating to the eval-
uations and annual reports required under
subparagraphs (B) and (D) of paragraph
(2) 
exceed 
$2,000,000 
of 
such
$100,000,000; or
(iii) payments be provided by the Sec-
retary for a fiscal year after fiscal year
2009.
(C) FUNDS ALLOCATED TO STATES.—
(i) IN GENERAL.—The Secretary shall
allocate funds to States based on their ap-
plications and the availability of funds. In
making such allocations, the Secretary
shall ensure an equitable distribution of
funds among States with large populations
and States with small populations.
(ii) AVAILABILITY.—Funds allocated
to a State under a grant made under this
section for a fiscal year shall remain avail-
able until expended.
(D) FUNDS NOT ALLOCATED TO STATES.—
Funds not allocated to States in the fiscal year
for which they are appropriated shall remain
available in succeeding fiscal years for alloca-
tion by the Secretary using the allocation for-
mula established under this section.
(E) PAYMENTS
TO
STATES.—The Sec-
retary shall pay to each State with a dem-
onstration project approved under this section,
from its allocation under subparagraph (C), an
amount for each quarter equal to the Federal
medical assistance percentage (as defined in
section 1905(b) of the Social Security Act (42
U.S.C. 1395d(b))) of expenditures in the quar-
ter for medical assistance provided to children
with a potentially severe disability.
(d) RECOMMENDATION.—Not later than October 1,
2004, the Secretary shall submit a recommendation to the
Committee on Commerce of the House of Representatives
and the Committee on Finance of the Senate regarding
whether the demonstration project established under this
section should be continued after fiscal year 2006.
(e) STATE DEFINED.—In this section, the term
‘‘State’’ has the meaning given such term for purposes of
title XIX of the Social Security Act (42 U.S.C. 1396 et
seq.).
SEC. 5. DEVELOPMENT AND SUPPORT OF FAMILY-TO-FAM-
ILY HEALTH INFORMATION CENTERS.
Section 501 of the Social Security Act (42 U.S.C.
701) is amended by adding at the end the following new
subsection:
‘‘(c)(1)(A) In addition to amounts appropriated
under subsection (a) and retained under section 502(a)(1)
for the purpose of carrying out activities described in sub-
section (a)(2), there is appropriated to the Secretary, out
of any money in the Treasury not otherwise appropriated,
for the purpose of enabling the Secretary (through grants,
contracts, or otherwise) to provide for special projects of
regional and national significance for the development and
support of family-to-family health information centers de-
scribed in paragraph (2), $10,000,000 for each of fiscal
years 2001 through 2006.
‘‘(B) Funds appropriated under subparagraph (A)
shall remain available until expended.
‘‘(2) The family-to-family health information centers
described in this paragraph are centers that—
‘‘(A) assist families of children with disabilities
or special health care needs to make informed
choices about health care in order to promote good
treatment decisions, cost-effectiveness, and improved
health outcomes for such children;
‘‘(B) provide information regarding the health
care needs of, and resources available for, children
with disabilities or special health care needs;
‘‘(C) identify successful health delivery models
for such children;
‘‘(D) develop with representatives of health care
providers, managed care organizations, health care
purchasers, and appropriate State agencies a model
for collaboration between families of such children
and health professionals;
‘‘(E) provide training and guidance regarding
caring for such children;
‘‘(F) conduct outreach activities to the families
of such children, health professionals, schools, and
other appropriate entities and individuals; and
‘‘(G) are staffed by families of children with
disabilities or special health care needs who have ex-
pertise in Federal and State public and private
health care systems and health professionals.
‘‘(3) The provisions of this title that are applicable
to the funds made available to the Secretary under section
502(a)(1) apply in the same manner to funds made avail-
able to the Secretary under paragraph (1).’’.
SEC. 6. RESTORATION OF MEDICAID ELIGIBILITY FOR CER-
TAIN SSI BENEFICIARIES.
(a) IN GENERAL.—Section 1902(a)(10)(A)(i)(II) of
the 
Social 
Security 
Act 
(42 
U.S.C.
1396a(a)(10)(A)(i)(II)) is amended—
(1) by inserting ‘‘(aa)’’ after ‘‘(II)’’;
(2) by striking ‘‘or who are’’ and inserting
‘‘(bb) who are’’; and
(3) by inserting before the comma at the end
the following: ‘‘, or (cc) who are under 21 years of
age and with respect to whom supplemental security
income benefits would be paid under title XVI but
for section 1611(c)(7)’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) apply to medical assistance for items and
services furnished on or after October 1, 2000, except that
a State may elect to apply such amendments to items and
services furnished on or after any date after the date of
the enactment of this Act and before October 1, 2000.
Æ