SEC. 6. STATE OPTION TO PROVIDE FAMILY PLANNING 
SERVICES AND SUPPLIES TO INDIVIDUALS 
WITH INCOMES THAT DO NOT EXCEED A 
STATE’S INCOME ELIGIBILITY LEVEL FOR 
MEDICAL ASSISTANCE. 
(a) IN GENERAL.—Title XIX of the Social Security 
Act (42 U.S.C. 1396 et seq.) is amended—
(1) by redesignating section 1935 as section 
1936; and 
(2) by inserting after section 1934 the following 
new section: 
‘‘STATE OPTION TO PROVIDE FAMILY PLANNING 
SERVICES AND SUPPLIES 
‘‘SEC. 1935. (a) IN GENERAL.—Subject to sub-
sections (b) and (c), a State may elect (through a State 
plan amendment) to make medical assistance described in 
section 1905(a)(4)(C) available to any individual whose 
family income does not exceed the greater of—
‘‘(1) 185 percent of the income official poverty 
line (as defined by the Office of Management and 
Budget, and revised annually in accordance with sec-
tion 673(2) of the Omnibus Budget Reconciliation 
Act of 1981) applicable to a family of the size in-
volved; or 
‘‘(2) the eligibility income level (expressed as a 
percentage of such poverty line) that has been speci-
fied under a waiver authorized by the Secretary or 
under section 1902(r)(2)), as of October 1, 2003, 
for an individual to be eligible for medical assistance 
under the State plan. 
‘‘(b) COMPARABILITY.—Medical assistance described 
in section 1905(a)(4)(C) that is made available under a 
State plan amendment under subsection (a) shall—
‘‘(1) not be less in amount, duration, or scope 
than the medical assistance described in that section 
that is made available to any other individual under 
the State plan; and 
‘‘(2) be provided in accordance with the restric-
tions on deductions, cost sharing, or similar charges 
imposed under section 1916(a)(2)(D). 
‘‘(c) OPTION TO EXTEND COVERAGE DURING
A 
POST-ELIGIBILITY PERIOD.—
‘‘(1) INITIAL
PERIOD.—A State plan amend-
ment made under subsection (a) may provide that 
any individual who was receiving medical assistance 
described in section 1905(a)(4)(C) as a result of 
such amendment, and who becomes ineligible for 
such assistance because of hours of, or income from, 
employment, may remain eligible for such medical 
assistance through the end of the 6-month period
that begins on the first day the individual becomes 
so ineligible. 
‘‘(2) ADDITIONAL EXTENSION.—A State plan 
amendment made under subsection (a) may provide 
that any individual who has received medical assist-
ance described in section 1905(a)(4)(C) during the 
entire 6-month period described in paragraph (1) 
may be extended coverage for such assistance for a 
succeeding 6-month period.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) apply to medical assistance provided on and 
after October 1, 2003. 
SEC. 7. STATE OPTION TO EXTEND THE POSTPARTUM PE-
RIOD FOR PROVISION OF FAMILY PLANNING 
SERVICES AND SUPPLIES. 
(a) IN GENERAL.—Section 1902(e)(5) of the Social 
Security Act (42 U.S.C. 1396a(e)(5)) is amended—
(1) by striking ‘‘eligible under the plan, as 
though’’ and inserting ‘‘eligible under the plan—
‘‘(A) as though’’; 
(2) by striking the period and inserting ‘‘; 
and’’; and 
(3) by adding at the end the following new sub-
paragraph:
‘‘(B) for medical assistance described in section 
1905(a)(4)(C) for so long as the family income of 
such woman does not exceed the maximum income 
level established by the State for the woman to be 
eligible for medical assistance under the State plan 
(as a result of pregnancy or otherwise).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) apply to medical assistance provided on and 
after October 1, 2003. 
SEC. 8. STATE OPTION TO PROVIDE WRAP-AROUND SCHIP 
COVERAGE TO CHILDREN WHO HAVE OTHER 
HEALTH COVERAGE. 
(a) IN GENERAL.—
(1) SCHIP.—
(A) STATE
OPTION
TO
PROVIDE
WRAP-
AROUND
COVERAGE.—Section 2110(b) of the 
Social Security Act (42 U.S.C. 1397jj(b)) is 
amended—
(i) in paragraph (1)(C), by inserting 
‘‘, subject to paragraph (5),’’ after ‘‘under 
title XIX or’’; and 
(ii) by adding at the end the fol-
lowing: 
‘‘(5) STATE OPTION TO PROVIDE WRAP-AROUND 
COVERAGE.—A State may waive the requirement of
paragraph (1)(C) that a targeted low-income child 
may not be covered under a group health plan or 
under health insurance coverage, if the State satis-
fies the conditions described in subsection (c)(8). 
The State may waive such requirement in order to 
provide—
‘‘(A) services for a child with special health 
care needs; or 
‘‘(B) all services. 
In waiving such requirement, a State may limit the 
application of the waiver to children whose family in-
come does not exceed a level specified by the State, 
so long as the level so specified does not exceed the 
maximum income level otherwise established for 
other children under the State child health plan .’’. 
(B) 
CONDITIONS
DESCRIBED.—Section 
2105(c) of the Social Security Act (42 U.S.C. 
1397ee(c)) is amended by adding at the end the 
following: 
‘‘(8) CONDITIONS
FOR
PROVISION
OF
WRAP-
AROUND
COVERAGE.—For 
purposes 
of 
section 
2110(b)(5), the conditions described in this para-
graph are the following:
‘‘(A) INCOME
ELIGIBILITY.—The State 
child health plan (whether implemented under 
title XIX or this XXI)—
‘‘(i) has the highest income eligibility 
standard permitted under this title as of 
January 1, 2003; 
‘‘(ii) subject to subparagraph (B), 
does not limit the acceptance of applica-
tions for children; and 
‘‘(iii) provides benefits to all children 
in the State who apply for and meet eligi-
bility standards. 
‘‘(B) NO WAITING LIST IMPOSED.—With 
respect to children whose family income is at or 
below 200 percent of the poverty line, the State 
does not impose any numerical limitation, wait-
ing list, or similar limitation on the eligibility of 
such children for child health assistance under 
such State plan. 
‘‘(C) NO MORE FAVORABLE TREATMENT.—
The State child health plan may not provide 
more favorable coverage of dental services to 
the children covered under section 2110(b)(5) 
than to children otherwise covered under this 
title.’’.