I 
108TH CONGRESS 
2D SESSION 
H. R. 3840 
To amend title XXI of the Social Security Act to permit qualifying States 
to use a portion of their allotments under the State children’s health 
insurance program for any fiscal year for certain Medicaid expenditures, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 25, 2004 
Mr. NETHERCUTT introduced the following bill; which was referred to the 
Committee on Energy and Commerce 
A BILL 
To amend title XXI of the Social Security Act to permit 
qualifying States to use a portion of their allotments 
under the State children’s health insurance program for 
any fiscal year for certain Medicaid expenditures, and 
for other purposes. 
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 ‘‘Children’s Health Eq-
uity Technical Amendments Act of 2004’’.
SEC. 2. AUTHORITY FOR QUALIFYING STATES TO USE POR-
TION OF SCHIP ALLOTMENT FOR ANY FISCAL 
YEAR FOR CERTAIN MEDICAID EXPENDI-
TURES. 
(a) IN GENERAL.—Section 2105(g)(1)(A) of the So-
cial Security Act (42 U.S.C. 1397ee(g)(1)(A)) (as added 
by section 1(b) of Public Law 108–74) is amended by 
striking ‘‘, 1999, 2000, or 2001’’ and inserting ‘‘and any 
fiscal year thereafter’’. 
(b) SPECIAL RULE FOR USE OF ALLOTMENTS FOR 
FISCAL YEAR 2002 OR THEREAFTER.—Section 2105(g) 
of the Social Security Act (42 U.S.C. 1397ee(g)) (as so 
added and as amended by Public Law 108–127) is amend-
ed— 
(1) in paragraph (2), by striking ‘‘In this sub-
section’’ and inserting ‘‘Subject to paragraph (4), in 
this subsection’’; and 
(2) by adding at the end the following: 
‘‘(4) SPECIAL RULE REGARDING AUTHORITY TO 
USE PORTION OF ALLOTMENTS FOR FISCAL YEAR 
2002 
OR
THEREAFTER.—Notwithstanding para-
graph (2), the authority provided under paragraph 
(1)(A) with respect to any allotment under section 
2104 for fiscal year 2002 or any fiscal year there-
after (insofar as the allotment is available under 
subsections (e) and (g) of such section), shall only
apply to a qualifying State if the State has imple-
mented at least 3 of the following policies and proce-
dures (relating to coverage of children under title 
XIX and this title): 
‘‘(A) UNIFORM, SIMPLIFIED APPLICATION 
FORM.—With respect to children who are eligi-
ble for medical assistance under section 
1902(a)(10)(A), the State uses the same uni-
form, simplified application form (including, if 
applicable, permitting application other than in 
person) for purposes of establishing eligibility 
for benefits under title XIX and this title. 
‘‘(B) ELIMINATION OF ASSET TEST.—The 
State does not apply any asset test for eligi-
bility under section 1902(l) or this title with re-
spect to children. 
‘‘(C) ADOPTION
OF
12-MONTH
CONTIN-
UOUS ENROLLMENT.—The State provides that 
eligibility shall not be regularly redetermined 
more often than once every year under this title 
or 
for 
children 
described 
in 
section 
1902(a)(10)(A). 
‘‘(D) SAME VERIFICATION AND REDETER-
MINATION
POLICIES; 
AUTOMATIC
REASSESS-
MENT OF ELIGIBILITY.—With respect to chil-
dren who are eligible for medical assistance 
under section 1902(a)(10)(A), the State pro-
vides for initial eligibility determinations and 
redeterminations of eligibility using the same 
verification policies (including with respect to 
face-to-face interviews), forms, and frequency 
as the State uses for such purposes under this 
title, and, as part of such redeterminations, 
provides for the automatic reassessment of the 
eligibility of such children for assistance under 
title XIX and this title. 
‘‘(E) 
OUTSTATIONING
ENROLLMENT 
STAFF.—The State provides for the receipt and 
initial processing of applications for benefits 
under this title and for children under title XIX 
at facilities defined as disproportionate share 
hospitals under section 1923(a)(1)(A) and fed-
erally-qualified health centers described in sec-
tion 1905(l)(2)(B) consistent with section 
1902(a)(55).’’. 
(c) CONFORMING AMENDMENT.—Section 2105(g)(3) 
of the Social Security Act (42 U.S.C. 1397ee(g)(3)) is 
amended by striking ‘‘paragraphs (1) and (2)’’ and insert-
ing ‘‘this subsection’’.
(d) EFFECTIVE DATE.—The amendments made by 
this section take effect as if enacted on October 1, 2003. 
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