I
107TH CONGRESS
1ST SESSION
H. R. 3414
To provide certain temporary increases in the Federal medical assistance
percentage (FMAP) under the Medicaid Program for fiscal year 2002
to help States finance increases in enrollment due to rising unemployment
and to prevent reductions in health insurance coverage due to State
budget crises.
IN THE HOUSE OF REPRESENTATIVES
DECEMBER 5, 2001
Mr. KING (for himself, Mr. BROWN of Ohio, Mr. WALSH, Mr. DINGELL, Mr.
HOUGHTON, Mr. WAXMAN, Mrs. KELLY, Mr. BONIOR, Mr. SWEENEY,
Mr. NADLER, Mr. QUINN, Mr. PALLONE, Mr. GRUCCI, Mrs. CAPPS, Mr.
SERRANO, Mrs. MALONEY of New York, Mr. BOUCHER, Mr. TOWNS, Mr.
BARRETT of Wisconsin, Mr. MCNULTY, Mr. FARR of California, Mr.
ACKERMAN, Mr. STENHOLM, Mr. ISRAEL, Mr. SHOWS, Mr. ENGEL, Mrs.
MCCARTHY of New York, Mr. GREEN of Texas, Mr. STRICKLAND, Mr.
GILMAN, Mr. ALLEN, Mr. HINCHEY, Mr. STUPAK, Ms. LEE, Mr. RAN-
GEL, Mr. REYNOLDS, Mrs. LOWEY, Mr. WEINER, Mr. CROWLEY, Ms.
VELA´ZQUEZ, Mr. MCHUGH, and Mr. FOLEY) introduced the following
bill; which was referred to the Committee on Energy and Commerce
A BILL
To provide certain temporary increases in the Federal med-
ical assistance percentage (FMAP) under the Medicaid
Program for fiscal year 2002 to help States finance
increases in enrollment due to rising unemployment and
to prevent reductions in health insurance coverage due
to State budget crises.
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 ‘‘State Budget Relief
Act of 2001’’.
SEC. 2. TEMPORARY INCREASES OF MEDICAID FMAP FOR
FISCAL YEAR 2002.
(a) PERMITTING MAINTENANCE OF FISCAL YEAR
2001 FMAP.—Notwithstanding any other provision of
law, but subject to subsection (d), if the FMAP deter-
mined without regard to this section for a State for fiscal
year 2002 is less than the FMAP as so determined for
fiscal year 2001, the FMAP for the State for fiscal year
2001 shall be substituted for the State’s FMAP for fiscal
year 2002, before the application of this section.
(b) GENERAL 2 PERCENTAGE POINT INCREASE.—
Notwithstanding any other provision of law, but subject
to subsections (d) and (e), for each State for each calendar
quarter in fiscal year 2002, the FMAP (taking into ac-
count the application of subsection (a)) shall be increased
by 2 percentage points.
(c) FURTHER INCREASE FOR STATES WITH HIGH
UNEMPLOYMENT RATES.—
(1) IN GENERAL.—Notwithstanding any other
provision of law, but subject to subsections (d) and
(e), if a State is a high unemployment State for a
calendar quarter in fiscal year 2002, then the
FMAP for that State for that calendar quarter and
for any subsequent calendar quarter in such fiscal
year regardless of whether the State continues to be
high unemployment State for that subsequent cal-
endar quarter shall be increased (after the applica-
tion of subsections (a) and (b)) by 2.5 percentage
points.
(2) HIGH UNEMPLOYMENT STATE.—For pur-
poses of this subsection, a State is a high unemploy-
ment State for a calendar quarter if, for any 3 con-
secutive month period beginning on or after June
2001 and ending with the second month before the
beginning of the calendar quarter, the State has an
average seasonally adjusted unemployment rate that
exceeds the average weighted unemployment rate
during such period. Such unemployment rates for
such months shall be determined based on publica-
tions of the Bureau of Labor Statistics of the De-
partment of Labor.
(3) AVERAGE WEIGHTED UNEMPLOYMENT RATE
DEFINED.—For purposes of paragraph (2), the ‘‘av-
erage weighted unemployment rate’’ for a period
is—
(A) the sum of the seasonally adjusted
number of unemployed civilians in each State
and the District of Columbia for the period, di-
vided by
(B) the sum of the civilian labor force in
each State and the District of Columbia for the
period.
(d) SCOPE OF APPLICATION.—The increases in the
FMAP for a State under this section shall apply only for
purposes of title XIX of the Social Security Act and shall
not apply with respect to—
(1) disproportionate share hospital payments
described in section 1923 of such Act; and
(2) payments under titles IV and XXI of such
Act.
(e) STATE ELIGIBILITY.—A State is eligible for an
increase in its FMAP under subsection (b) or (c) or an
increase in a cap amount under subsection (f) only if the
eligibility under its State plan under title XIX of the So-
cial Security Act (including any waiver under such title
or under section 1115 of such Act) is no more restrictive
than the eligibility under such plan (or waiver) as in effect
on October 1, 2001.
(f) ONE-YEAR INCREASE IN CAP ON MEDICAID PAY-
MENTS
TO TERRITORIES.—Notwithstanding any other
provision of law, but subject to section (e), with respect
to fiscal year 2002, the amounts otherwise determined for
Puerto Rico, the Virgin Islands, Guam, the Northern Mar-
iana Islands, and American Samoa under subsections (f)
and (g)(2) of section 1108 of the Social Security Act (42
U.S.C 1308) shall each be increased by 9 percent of such
amounts.
(g) DEFINITIONS.—For purposes of 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.
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