H. R. 3971
One Hundred Ninth Congress
of the
United States of America 
AT THE FIRST SESSION 
Begun and held at the City of Washington on Tuesday, 
the fourth day of January, two thousand and five 
An Act 
To extend medicare cost-sharing for qualifying individuals through September 2007, 
to extend transitional medical assistance and the program for abstinence education 
through December 2005, to provide unemployment relief for States and individuals 
affected by Hurricane Katrina, and for other purposes.
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘QI, TMA, and Abstinence Pro-
grams Extension and Hurricane Katrina Unemployment Relief Act 
of 2005’’. 
TITLE I—HEALTH PROVISIONS 
SEC. 101. EXTENSION OF QUALIFIED INDIVIDUAL (QI) PROGRAM. 
(a) THROUGH SEPTEMBER 2007.—Section 1902(a)(10)(E)(iv) of 
the Social Security Act (42 U.S.C. 1396a(a)(10)(E)(iv)) is amended 
by striking ‘‘September 2005’’ and inserting ‘‘September 2007’’. 
(b) EXTENDING TOTAL AMOUNT AVAILABLE FOR ALLOCATION.—
Section 1933(g) of such Act (42 U.S.C. 1396u–3(g)) is amended—
(1) in paragraph (2)—
(A) by striking ‘‘and’’ at the end of subparagraph (B); 
(B) by striking the period at the end of subparagraph 
(C) and inserting a semicolon; and 
(C) by adding at the end the following new subpara-
graphs: 
‘‘(D) for the period that begins on October 1, 2005, 
and ends on December 31, 2005, the total allocation amount 
is $100,000,000; 
‘‘(E) for the period that begins on January 1, 2006, 
and ends on September 30, 2006, the total allocation 
amount is $300,000,000; 
‘‘(F) for the period that begins on October 1, 2006, 
and ends on December 31, 2006, the total allocation amount 
is $100,000,000; and 
‘‘(G) for the period that begins on January 1, 2007, 
and ends on September 30, 2007, the total allocation 
amount is $300,000,000.’’; and 
(2) in paragraph (3), in the matter preceding subparagraph 
(A), by inserting ‘‘, (D), or (F)’’ after ‘‘subparagraph (B)’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall be effective as of September 30, 2005.
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SEC. 102. EXTENSION OF TRANSITIONAL MEDICAL ASSISTANCE (TMA) 
AND ABSTINENCE EDUCATION PROGRAM. 
Effective as if enacted on September 30, 2005, activities author-
ized by sections 510 and 1925 of the Social Security Act shall 
continue through December 31, 2005, in the manner authorized 
for fiscal year 2005, notwithstanding section 1902(e)(1)(A) of such 
Act, and out of any money in the Treasury of the United States 
not otherwise appropriated, there are hereby appropriated such 
sums as may be necessary for such purpose. Grants and payments 
may be made pursuant to this authority through the first quarter 
of fiscal year 2006 at the level provided for such activities through 
the first quarter of fiscal year 2005. 
SEC. 103. ELIMINATION OF MEDICARE COVERAGE OF DRUGS USED 
FOR TREATMENT OF SEXUAL OR ERECTILE DYSFUNC-
TION. 
(a) IN GENERAL.—Section 1860D–2(e)(2)(A) of the Social Secu-
rity Act (42 U.S.C. 1395w–102(e)(2)(A)) is amended—
(1) by striking the period at the end and inserting ‘‘, as 
such sections were in effect on the date of the enactment 
of this part.’’; and 
(2) by adding at the end the following: ‘‘Such term also 
does not include a drug when used for the treatment of sexual 
or erectile dysfunction, unless such drug were used to treat 
a condition, other than sexual or erectile dysfunction, for which 
the drug has been approved by the Food and Drug Administra-
tion.’’. 
(b) CONSTRUCTION.—Nothing in this section shall be construed 
as preventing a prescription drug plan or an MA–PD plan from 
providing coverage of drugs for the treatment of sexual or erectile 
dysfunction as supplemental prescription drug coverage under sec-
tion 1860D–2(a)(2)(A)(ii) of the Social Security Act (42 U.S.C. 
1395w–102(a)(2)(A)(ii)). 
(c) EFFECTIVE DATES.—The amendment made by subsection 
(a)(1) shall take effect as if included in the enactment of the Medi-
care Prescription Drug, Improvement, and Modernization Act of 
2003 (Public Law 108–173) and the amendment made by subsection 
(a)(2) shall apply to coverage for drugs dispensed on or after 
January 1, 2007. 
SEC. 104. ELIMINATION OF MEDICAID COVERAGE OF DRUGS USED 
FOR TREATMENT OF SEXUAL OR ERECTILE DYSFUNC-
TION. 
(a) IN GENERAL.—Section 1927(d)(2) of the Social Security Act 
(42 U.S.C. 1396r–8(d)(2)) is amended by adding at the end the 
following new subparagraph: 
‘‘(K) Agents when used for the treatment of sexual 
or erectile dysfunction, unless such agents are used to 
treat a condition, other than sexual or erectile dysfunction, 
for which the agents have been approved by the Food 
and Drug Administration.’’. 
(b) ELIMINATION OF FEDERAL PAYMENT UNDER MEDICAID PRO-
GRAM.—Section 1903(i) of such Act (42 U.S.C. 1396b(i)) is 
amended—
(1) by striking ‘‘or’’ at the end of paragraph (19); 
(2) by striking the period at the end of paragraph (20) 
and inserting ‘‘; or’’; and
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(3) by inserting after paragraph (20) the following new 
paragraph: 
‘‘(21) with respect to amounts expended for covered out-
patient drugs described in section 1927(d)(2)(K) (relating to 
drugs when used for treatment of sexual or erectile dysfunc-
tion).’’. 
(c) CLARIFICATION OF NO EFFECT ON DETERMINATION OF BASE 
EXPENDITURES.—Section 1935(c)(3)(B)(ii)(II) of such Act (42 U.S.C. 
1396v(c)(3)(B)(ii)(II)) is amended by inserting ‘‘, including drugs 
described in subparagraph (K) of section 1927(d)(2)’’ after ‘‘1860D–
2(e)’’. 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall apply to drugs dispensed on or after January 1, 2006. 
TITLE II—ASSISTANCE RELATING TO 
UNEMPLOYMENT 
SEC. 201. SPECIAL TRANSFER IN FISCAL YEAR 2006. 
Section 903 of the Social Security Act (42 U.S.C. 1103) is 
amended by adding at the end the following: 
‘‘(e) SPECIAL TRANSFER IN FISCAL YEAR 2006.—Not later than 
10 days after the date of the enactment of this subsection, the 
Secretary of the Treasury shall transfer from the Federal unemploy-
ment account—
‘‘(1) $15,000,000 to the account of Alabama in the 
Unemployment Trust Fund; 
‘‘(2) $400,000,000 to the account of Louisiana in the 
Unemployment Trust Fund; and 
‘‘(3) $85,000,000 to the account of Mississippi in the 
Unemployment Trust Fund.’’. 
SEC. 202. FLEXIBILITY IN UNEMPLOYMENT COMPENSATION ADMINIS-
TRATION TO ADDRESS HURRICANE KATRINA. 
Notwithstanding any provision of section 302(a) or 303(a)(8) 
of the Social Security Act, any State may, on or after August 
28, 2005, use any amounts received by such State pursuant to 
title III of the Social Security Act to assist in the administration 
of claims for compensation on behalf of any other State if a major 
disaster was declared with respect to such other State or any 
area within such other State under the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act by reason of Hurricane 
Katrina.
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SEC. 203. REGULATIONS. 
The Secretary of Labor may prescribe any operating instruc-
tions or regulations necessary to carry out this title and any amend-
ment made by this title.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.