I 
109TH CONGRESS 
1ST SESSION H. R. 3335 
To prevent a severe reduction in the Federal medical assistance percentage 
determined for a State for fiscal year 2006 and to provide for adjustment 
in computation of such percentage to disregard an extraordinary em-
ployer pension contribution. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 19, 2005 
Mr. DINGELL (for himself, Mr. BROWN of Ohio, Mr. WAXMAN, Mr. KILDEE, 
and Mr. MCDERMOTT) introduced the following bill; which was referred 
to the Committee on Energy and Commerce 
A BILL 
To prevent a severe reduction in the Federal medical assist-
ance percentage determined for a State for fiscal year 
2006 and to provide for adjustment in computation of 
such percentage to disregard an extraordinary employer 
pension contribution. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Medicaid Formula 
Fairness Act of 2005’’.
SEC. 2. LIMITATION ON SEVERE REDUCTION IN THE MED-
ICAID FMAP FOR FISCAL YEAR 2006. 
(a) LIMITATION ON REDUCTION.—In no case shall 
the FMAP for a State for fiscal year 2006 be less than 
the greater of the following: 
(1) HALF
PERCENTAGE
POINT
DECREASE.— 
The FMAP determined for the State for fiscal year 
2005, decreased by 0.5 percentage points. 
(2) COMPUTATION WITHOUT RETROACTIVE AP-
PLICATION
OF
REBENCHMARKED
PER
CAPITA
IN-
COME.—The FMAP that would have been deter-
mined for the State for fiscal year 2006 if the per 
capita incomes for 2001 and 2002 that was used to 
determine the FMAP for the State for fiscal year 
2005 were used. 
(b) SCOPE OF APPLICATION.—The FMAP applicable 
to a State for fiscal year 2006 after the application of 
subsection (a) shall apply only for purposes of titles XIX 
and XXI of the Social Security Act (including for purposes 
of making disproportionate share hospital payments de-
scribed in section 1923 of such Act (42 U.S.C. 1396r– 
4) and payments under such titles that are based on the 
enhanced FMAP described in section 2105(b) of such Act 
(42 U.S.C. 1397ee(b))) and shall not apply with respect 
to payments under title IV of such Act (42 U.S.C. 601 
et seq.).
(c) DEFINITIONS.—In this section: 
(1) FMAP.—The term ‘‘FMAP’’ means the 
Federal medical assistance percentage, as defined in 
section 1905(b) of the Social Security Act (42 
U.S.C. 1396d(b)). 
(2) STATE.—The term ‘‘State’’ has the mean-
ing given such term for purposes of title XIX of the 
Social Security Act (42 U.S.C. 1396 et seq.). 
SEC. 3. REPEAL. 
Effective as of October 1, 2006, section 2 is repealed 
and shall not apply to any fiscal year after fiscal year 
2006. 
SEC. 4. ADJUSTMENT IN COMPUTATION OF MEDICAID 
FMAP TO DISREGARD AN EXTRAORDINARY 
EMPLOYER PENSION CONTRIBUTION. 
(a) IN GENERAL.—Only for purposes of computing 
the Federal medical assistance percentage under section 
1905(b) of the Social Security Act (42 U.S.C. 1396d(b)) 
for a State for a fiscal year (beginning with fiscal year 
2006), any significantly disproportionate employer pension 
contribution described in subsection (b) shall be dis-
regarded in computing the per capita income of such 
State, but shall not be disregarded in computing the per 
capita income for the continental United States (and Alas-
ka) and Hawaii.
(b) SIGNIFICANTLY DISPROPORTIONATE EMPLOYER 
PENSION CONTRIBUTION.—For purposes of subsection 
(a), a significantly disproportionate employer pension con-
tribution described in this subsection with respect to a 
State for a fiscal year is an employer contribution towards 
pensions that is allocated to such State for a period if the 
aggregate amount so allocated exceeds 30 percent of the 
total increase in personal income in that State for the pe-
riod involved. 
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