cost-effective resource and delivery system and 
expanding the availability of home and commu-
nity-based services, and that is designed to re-
sult in administrative savings, consolidation of 
common activities, and the elimination of re-
dundant processes.’’. 
(c) ALLOCATION OF FUNDS.— 
(1) ELIMINATION OF CURRENT LAW REQUIRE-
MENTS
FOR
ALLOCATION
OF
FUNDS.—Section 
1903(z)(4)(B) of the Social Security Act (42 U.S.C. 
1396b(z)(4)(B)) is amended by striking the second 
and third sentences. 
(2) ASSURANCE OF FUNDS TO FACILITATE THE 
PROVISION OF HOME AND COMMUNITY-BASED SERV-
ICES
AND
INTEGRATED
SYSTEMS
OF
LONG-TERM 
CARE.—Section 1903(z)(4)(B) of the Social Security 
Act (42 U.S.C. 1396b(z)(4)(B)), as amended by 
paragraph (1), is amended by inserting after the 
first sentence the following new sentence: ‘‘Such 
method shall provide that 50 percent of such funds 
shall be allocated among States that design pro-
grams to adopt the innovative methods described in 
subparagraph (G) or (H) (or both) of paragraph 
(2).’’. 
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(d) RENAMING PROGRAM.—The heading of section 
1903(z) of such Act is amended by striking ‘‘TRANS-
FORMATION’’ and inserting ‘‘INVESTMENT’’. 
(e) CLARIFICATION.—Such section is further amend-
ed by adding at the end the following new paragraph: 
‘‘(6) CLARIFICATION OF PROTECTION OF BENE-
FICIARIES.—Nothing in this section shall be con-
strued as authorizing States to use payments pro-
vided under this subsection for the purpose of lim-
iting eligibility or benefits under this title.’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section take effect on October 1, 2009. 
SEC. 202. HEALTH PROMOTION GRANTS. 
(a) DEFINITIONS.—In this section: 
(1) ELIGIBLE
MEDICAID
BENEFICIARY.—The 
term ‘‘eligible Medicaid beneficiary’’ means an indi-
vidual who is enrolled in the State Medicaid plan 
under title XIX of the Social Security Act and— 
(A) has attained the age of 60 and is not 
a resident of a nursing facility; or 
(B) is an adult with a physical, mental, 
cognitive, or intellectual impairment. 
(2) ELIGIBLE
STATE.—The term ‘‘eligible 
State’’ means a State that submits an application to 
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the Secretary for a grant under this section, in such 
form and manner as the Secretary shall require. 
(3) 
EVIDENCE- 
AND
COMMUNITY-BASED 
HEALTH
PROMOTION
PROGRAM.—The 
term 
‘‘evidence- and community-based health promotion 
program’’ means a community-based program (such 
as a program for chronic disease self-management, 
physical or mental activity, falls prevention, smoking 
cessation, or dietary modification) that has been ob-
jectively evaluated and found to improve health out-
comes or meet health promotion goals by preventing, 
delaying, or decreasing the severity of physical, men-
tal, cognitive, or intellectual impairment and that 
meets generally accepted standards for best profes-
sional practice. 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Health and Human Services. 
(b) AUTHORITY
TO
CONDUCT
DEMONSTRATION 
PROJECT.—The Secretary shall award grants on a com-
petitive basis to eligible States to conduct in accordance 
with this section an evidence- and community-based health 
promotion program that is designed to achieve the fol-
lowing objectives with respect to eligible Medicaid bene-
ficiaries: 
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(1) LIFESTYLE CHANGES.—To empower eligible 
Medicaid beneficiaries to take more control over 
their own health through lifestyle changes that have 
proven effective in reducing the effects of chronic 
disease and slowing the progression of disability. 
(2) DIFFUSION.—To mobilize the Medicaid, 
aging, disability, public health, and nonprofit net-
works at the State and local levels to accelerate the 
translation of credible research into practice through 
the deployment of low-cost evidence-based health 
promotion and disability prevention programs at the 
community level. 
(c) SELECTION AND AMOUNT OF GRANT AWARDS.— 
In awarding grants to eligible States under this section 
and determining the amount of the awards, the Secretary 
shall— 
(1) take into consideration the manner and ex-
tent to which the eligible State proposes to achieve 
the objectives specified in subsection (b); and 
(2) give preference to eligible States pro-
posing— 
(A) programs through public service pro-
vider organizations or other organizations with 
expertise in serving eligible Medicaid bene-
ficiaries; 
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(B) strong State-level collaboration across, 
Medicaid agencies, State units on aging, State 
independent living councils, State associations 
of Area Agencies on Aging, and State agencies 
responsible for public health; or 
(C) interventions that have already dem-
onstrated effectiveness and replicability in a 
community-based, nonmedical setting. 
(d) USE OF FUNDS.—An eligible State awarded a 
grant under this section shall use the funds awarded to 
develop, implement, and sustain high quality evidence- and 
community-based health promotion programs. As a condi-
tion of being awarded such a grant, an eligible State shall 
agree to— 
(1) implement such programs in at least 3 geo-
graphic areas of the State; and 
(2) develop the infrastructure and partnerships 
that will be necessary over the long-term to effec-
tively embed evidence- and community-based health 
promotion programs for eligible Medicaid bene-
ficiaries within the statewide health, aging, dis-
ability, and long-term care systems. 
(e) TECHNICAL ASSISTANCE.—The Secretary shall 
provide assistance to eligible States awarded grants under 
this section, subgrantees and their partners, program or-
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