HR 3162 PCS
graph (D)(ii)) for the State and fiscal 
year under this title. 
‘‘(II) SECOND TIER ABOVE BASE-
LINE CHIP ENROLLEES.—An amount 
equal to the number of second tier 
above baseline child enrollees under 
this title (as determined under sub-
paragraph (C)(ii)) for the State and 
fiscal year multiplied by 75 percent of 
the projected per capita State CHIP 
expenditures (as determined under 
subparagraph (D)(ii)) for the State 
and fiscal year under this title. 
‘‘(C) NUMBER OF FIRST AND SECOND TIER 
ABOVE BASELINE CHILD ENROLLEES; BASELINE 
NUMBER OF CHILD ENROLLEES.—For purposes 
of this paragraph: 
‘‘(i) FIRST
TIER
ABOVE
BASELINE 
CHILD ENROLLEES.—The number of first 
tier above baseline child enrollees for a 
State for a fiscal year under this title or 
title XIX is equal to the number (if any, 
as determined by the Secretary) by 
which— 
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‘‘(I) 
the 
monthly 
average 
unduplicated number of qualifying 
children (as defined in subparagraph 
(E)) enrolled during the fiscal year 
under the State child health plan 
under this title or under the State 
plan under title XIX, respectively; ex-
ceeds 
‘‘(II) the baseline number of en-
rollees described in clause (iii) for the 
State and fiscal year under this title 
or title XIX, respectively; 
but not to exceed 3 percent (in the case of 
title XIX) or 7.5 percent (in the case of 
this title) of the baseline number of enroll-
ees described in subclause (II). 
‘‘(ii) SECOND TIER ABOVE BASELINE 
CHILD ENROLLEES.—The number of sec-
ond tier above baseline child enrollees for 
a State for a fiscal year under this title or 
title XIX is equal to the number (if any, 
as determined by the Secretary) by 
which— 
‘‘(I) 
the 
monthly 
average 
unduplicated number of qualifying 
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children (as defined in subparagraph 
(E)) enrolled during the fiscal year 
under this title or under title XIX, re-
spectively, as described in clause 
(i)(I); exceeds 
‘‘(II) the sum of the baseline 
number of child enrollees described in 
clause (iii) for the State and fiscal 
year under this title or title XIX, re-
spectively, as described in clause 
(i)(II), and the maximum number of 
first tier above baseline child enrollees 
for the State and fiscal year under 
this title or title XIX, respectively, as 
determined under clause (i). 
‘‘(iii) BASELINE
NUMBER
OF
CHILD 
ENROLLEES.—The baseline number of 
child enrollees for a State under this title 
or title XIX— 
‘‘(I) for fiscal year 2008 is equal 
to the monthly average unduplicated 
number of qualifying children enrolled 
in the State child health plan under 
this title or in the State plan under 
title XIX, respectively, during fiscal 
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year 2007 increased by the population 
growth for children in that State for 
the year ending on June 30, 2006 (as 
estimated by the Bureau of the Cen-
sus) plus 1 percentage point; or 
‘‘(II) for a subsequent fiscal year 
is equal to the baseline number of 
child enrollees for the State for the 
previous fiscal year under this title or 
title XIX, respectively, increased by 
the population growth for children in 
that State for the year ending on 
June 30 before the beginning of the 
fiscal year (as estimated by the Bu-
reau of the Census) plus 1 percentage 
point. 
‘‘(D) PROJECTED PER CAPITA STATE EX-
PENDITURES.—For purposes of subparagraph 
(B)— 
‘‘(i) PROJECTED PER CAPITA STATE 
MEDICAID EXPENDITURES.—The projected 
per capita State Medicaid expenditures for 
a State and fiscal year under title XIX is 
equal to the average per capita expendi-
tures (including both State and Federal fi-
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nancial participation) for children under 
the State plan under such title, including 
under waivers but not including such chil-
dren eligible for assistance by virtue of the 
receipt of benefits under title XVI, for the 
most recent fiscal year for which actual 
data are available (as determined by the 
Secretary), increased (for each subsequent 
fiscal year up to and including the fiscal 
year involved) by the annual percentage in-
crease in per capita amount of National 
Health Expenditures (as estimated by the 
Secretary) for the calendar year in which 
the respective subsequent fiscal year ends 
and multiplied by a State matching per-
centage equal to 100 percent minus the 
Federal medical assistance percentage (as 
defined in section 1905(b)) for the fiscal 
year involved. 
‘‘(ii) PROJECTED PER CAPITA STATE 
CHIP EXPENDITURES.—The projected per 
capita State CHIP expenditures for a 
State and fiscal year under this title is 
equal to the average per capita expendi-
tures (including both State and Federal fi-
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nancial participation) for children under 
the State child health plan under this title, 
including under waivers, for the most re-
cent fiscal year for which actual data are 
available (as determined by the Secretary), 
increased (for each subsequent fiscal year 
up to and including the fiscal year in-
volved) by the annual percentage increase 
in per capita amount of National Health 
Expenditures (as estimated by the Sec-
retary) for the calendar year in which the 
respective subsequent fiscal year ends and 
multiplied by a State matching percentage 
equal to 100 percent minus the enhanced 
FMAP (as defined in section 2105(b)) for 
the fiscal year involved. 
‘‘(E) QUALIFYING CHILDREN DEFINED.— 
For purposes of this subsection, the term 
‘qualifying children’ means, with respect to this 
title or title XIX, children who meet the eligi-
bility criteria (including income, categorical eli-
gibility, age, and immigration status criteria) in 
effect as of July 1, 2007, for enrollment under 
this title or title XIX, respectively, taking into 
account criteria applied as of such date under 
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this title or title XIX, respectively, pursuant to 
a waiver under section 1115. 
‘‘(4) ENROLLMENT
AND
RETENTION
PROVI-
SIONS FOR CHILDREN.—For purposes of paragraph 
(3)(A), a State meets the condition of this para-
graph for a fiscal year if it is implementing at least 
4 of the following enrollment and retention provi-
sions (treating each subparagraph as a separate en-
rollment and retention provision) throughout the en-
tire fiscal year: 
‘‘(A) 
CONTINUOUS
ELIGIBILITY.—The 
State has elected the option of continuous eligi-
bility for a full 12 months for all children de-
scribed in section 1902(e)(12) under title XIX 
under 19 years of age, as well as applying such 
policy under its State child health plan under 
this title. 
‘‘(B) LIBERALIZATION OF ASSET REQUIRE-
MENTS.—The State meets the requirement 
specified in either of the following clauses: 
‘‘(i) ELIMINATION OF ASSET TEST.— 
The State does not apply any asset or re-
source test for eligibility for children under 
title XIX or this title. 
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