I 
115TH CONGRESS 
1ST SESSION H. R. 3325 
To amend title XIX of the Social Security Act to provide States with the 
option of providing coordinated care for children with complex medical 
conditions through a health home, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 20, 2017 
Mr. BARTON (for himself, Ms. CASTOR of Florida, Mr. GENE GREEN of 
Texas, Ms. ESHOO, Mr. REICHERT, and Ms. HERRERA BEUTLER) intro-
duced the following bill; which was referred to the Committee on Energy 
and Commerce 
A BILL 
To amend title XIX of the Social Security Act to provide 
States with the option of providing coordinated care for 
children with complex medical conditions through a 
health home, 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 ‘‘Advancing Care for 
Exceptional Kids Act’’ or the ‘‘ACE Kids Act’’. 
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SEC. 2. ESTABLISHMENT OF STATE MEDICAID OPTION TO 
PROVIDE COORDINATED CARE THROUGH A 
HEALTH HOME FOR CHILDREN WITH COM-
PLEX MEDICAL CONDITIONS. 
Title XIX of the Social Security Act (42 U.S.C. 1396 
et seq.) is amended by adding at the end the following 
new section: 
‘‘STATE
OPTION
TO
PROVIDE
COORDINATED
CARE 
THROUGH A HEALTH HOME FOR CHILDREN WITH 
COMPLEX MEDICAL CONDITIONS 
‘‘SEC. 1947. (a) IN GENERAL.—Notwithstanding sec-
tion 1902(a)(1) (relating to statewideness), section 
1902(a)(10)(B) (relating 
to 
comparability), 
section 
1902(a)(23) (relating to freedom of choice), section 
1902(a)(30)(A) (relating to equal access), and any other 
provision of this title which the Secretary determines it 
is necessary to waive in order to implement this section 
(other than section 1905(a)(4)(B) (relating to early and 
periodic screening, diagnostic, and treatment services)), 
beginning on January 1, 2018, a State, at its option as 
a State plan amendment, may provide for medical assist-
ance under this title to children with medically complex 
conditions who select (or for whom is selected) a des-
ignated provider, or a team of health care professionals, 
as the individual’s health home for purposes of providing 
such children with health home services. 
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‘‘(b) PAYMENTS.— 
‘‘(1) IN GENERAL.—A State shall provide, with 
respect to health home services furnished to each 
child with medically complex conditions who selects 
or for whom there is selected a designated provider 
or a team as the child’s health home pursuant to 
this section, to such designated provider or team 
with payments for the provision of such health home 
services. The State shall make such payments re-
gardless of whether a child with medically complex 
conditions described in the preceding sentence re-
ceives health home services under this section 
through a fee-for-service or managed care system. 
Such payments for such services shall be treated as 
medical assistance (as defined in section 1905(a)) 
for purposes of payments made under section 
1903(a), except that, during the first 8 fiscal year 
quarters that the State plan amendment is in effect, 
the Federal medical assistance percentage applicable 
to such payments shall be increased by 20 percent-
age points, but in no case shall exceed 90 percent. 
‘‘(2) METHODOLOGY.— 
‘‘(A) IN GENERAL.—The State shall speci-
fy in the State plan amendment the method-
ology the State will use for determining pay-
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ment under paragraph (1). Such methodology 
for determining payment— 
‘‘(i) may be tiered to reflect, with re-
spect to each child with medically complex 
conditions and each designated provider, or 
team of health care professionals, the se-
verity or number of such child’s chronic 
conditions, life-threatening illnesses, dis-
abilities, or rare diseases or the specific ca-
pabilities of such provider or such team; 
‘‘(ii) shall be established consistent 
with section 1902(a)(30)(A); and 
‘‘(iii) shall take into account any feed-
back the State receives from stakeholders. 
‘‘(B) MODELS OF PAYMENT.—The method-
ology under subparagraph (A) may include pay-
ments made on a per-member, per-month basis 
and may include shared savings models, pay- 
for-performance models, contingency awards de-
pendent on reducing utilization of emergency 
departments, or other incentive-based ap-
proaches, as defined by the State. 
‘‘(C) ENSURING
HIGH-QUALITY
CARE.— 
The methodology under subparagraph (A) shall 
include the State’s strategy for evaluating the 
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