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such coverage, based upon projected enrollment 
and per capita costs of such enrollment; and 
‘‘(B) in the case of a State which provided 
for coverage of pregnant women under this title 
for the previous fiscal year— 
‘‘(i) in applying paragraph (2)(B) of 
such section, there shall also be taken into 
account (in an appropriate proportion) the 
percentage increase in births in the State 
for the relevant period; and 
‘‘(ii) in applying paragraph (3), preg-
nant women (and per capita expenditures 
for such women) shall be accounted for 
separately from children, but shall be in-
cluded in the total amount of any allot-
ment adjustment under such paragraph. 
‘‘(d) AUTOMATIC
ENROLLMENT
FOR
CHILDREN 
BORN TO WOMEN RECEIVING ASSISTANCE FOR PREG-
NANT WOMEN.—If a child is born to a targeted low-in-
come pregnant woman who was receiving assistance for 
pregnant women under this section on the date of the 
child’s birth, the child shall be deemed to have applied for 
child health assistance under the State child health plan 
and to have been found eligible for such assistance under 
such plan or to have applied for medical assistance under 
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title XIX and to have been found eligible for such assist-
ance under such title on the date of such birth, based on 
the mother’s reported income as of the time of her enroll-
ment under this section and applicable income eligibility 
levels under this title and title XIX, and to remain eligible 
for such assistance until the child attains 1 year of age. 
During the period in which a child is deemed under the 
preceding sentence to be eligible for child health or med-
ical assistance, the assistance for pregnant women or med-
ical assistance eligibility identification number of the 
mother shall also serve as the identification number of the 
child, and all claims shall be submitted and paid under 
such number (unless the State issues a separate identifica-
tion number for the child before such period expires).’’. 
(2) 
ADDITIONAL
AMENDMENT.—Section 
2107(e)(1)(I) 
of 
such 
Act 
(42 
U.S.C. 
1397gg(e)(1)(H)), 
as 
redesignated 
by 
section 
112(b), is amended to read as follows: 
‘‘(I) Sections 1920 and 1920A (relating to 
presumptive eligibility for pregnant women and 
children).’’. 
(b) AMENDMENTS TO MEDICAID.— 
(1) ELIGIBILITY
OF
A
NEWBORN.—Section 
1902(e)(4) of the Social Security Act (42 U.S.C. 
1396a(e)(4)) is amended in the first sentence by 
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striking ‘‘so long as the child is a member of the 
woman’s household and the woman remains (or 
would remain if pregnant) eligible for such assist-
ance’’. 
(2) APPLICATION OF QUALIFIED ENTITIES TO 
PRESUMPTIVE ELIGIBILITY FOR PREGNANT WOMEN 
UNDER MEDICAID.—Section 1920(b) of the Social 
Security Act (42 U.S.C. 1396r–1(b)) is amended by 
adding after paragraph (2) the following flush sen-
tence: 
‘‘The term ‘qualified provider’ also includes a qualified en-
tity, as defined in section 1920A(b)(3).’’. 
SEC. 134. LIMITATION ON WAIVER AUTHORITY TO COVER 
ADULTS. 
Section 2102 of the Social Security Act (42 U.S.C. 
1397bb) is amended by adding at the end the following 
new subsection: 
‘‘(d) LIMITATION ON COVERAGE OF ADULTS.—Not-
withstanding any other provision of this title, the Sec-
retary may not, through the exercise of any waiver author-
ity on or after January 1, 2008, provide for Federal finan-
cial participation to a State under this title for health care 
services for individuals who are not targeted low-income 
children or pregnant women unless the Secretary deter-
mines that no eligible targeted low-income child in the 
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