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‘‘(c) 
ESTABLISHMENT
OF
NEW
DRGS
AND
WEIGHTS.—In making payment under this title with re-
spect to inpatient hospital services, the Secretary shall
make such adjustments in the diagnosis-related groups
and weighting factors with respect to discharges within
such 
groups, 
otherwise 
established 
under 
section
1886(d)(4) as may be necessary to reflect the types of dis-
charges occurring under this title which are not occurring
under title XVIII.
‘‘(d) CONDITIONS OF AND LIMITATIONS ON PAY-
MENTS.—The provisions of sections 1814 and 1835 shall
apply to payment for services under this title in the same
manner as they apply to payment for services under parts
A and B, respectively, of title XVIII.
‘‘(e) USE OF TRUST FUND.—In carrying out this sec-
tion, any reference in title XVIII to a trust fund shall be
treated as a reference to the Children’s Health Insurance
Trust Fund established under section 2233.
‘‘PART C—PREMIUMS; TRUST FUND
‘‘SEC. 2231. AMOUNT OF PREMIUMS.
‘‘(a) PREMIUM CLASSES.—There are 2 monthly pre-
mium rate classes under this section as follows:
‘‘(1) 
SINGLE
CHILD
MONTHLY
PREMIUM
RATE.—A premium rate for a single eligible child in
a family (in this section referred to as the ‘single
282
child monthly premium rate’), which shall be the
rate paid under section 2232 with respect to a child
who has no other eligible children in the same fam-
ily.
‘‘(2) FAMILY
MONTHLY
PREMIUM
RATE.—A
premium rate for two or more eligible children in a
family (in this section referred to as the ‘family
monthly premium rate’), which shall be the rate paid
under section 2232 with respect to all eligible chil-
dren in the same family.
‘‘(3) FAMILY.—The Secretary shall specify, in
regulations, those children who shall be considered
to be in the same family for purposes of this section.
‘‘(b) MONTHLY PREMIUM RATES.—
‘‘(1) 1996 and 1997.—Subject to subsection
(c), the single child monthly premium rate and the
family monthly premium rate, for months in 1996
and 1997, are determined as follows:
For months in
The single child
monthly premium
rate
The family monthly
premium rate
1996 ........................................................
$156
$299
1997 ........................................................
$167
$321
‘‘(2) AFTER 1997.—Subject to subsection (d),
for months in years after 1997, the single child
monthly premium rate and the family monthly pre-
mium rate are equal to such respective rates estab-
283
lished under this subsection for the previous year
multiplied by the applicable adjustment factor (spec-
ified under section 101(c) of the Health Care Cost
Containment and Reform Act of 1993) for the year
involved.
‘‘(c) GEOGRAPHIC AREA ADJUSTMENT.—
‘‘(1) FORMULA.—The Secretary shall compute,
for each geographic locality, the ratio of the average
per capita costs of coverage under this title in local-
ity to the national average per capita costs.
‘‘(2) ADJUSTMENT.—The premium rates other-
wise established under this section and applied to a
geographic locality shall be multiplied by such ratio
and by such factor as the Secretary determines to be
necessary so that, if all eligible children were en-
rolled in the program under this title for all months
in the year and paid premiums based on the rates
specified in subsection (c) as adjusted under this
subsection, the total amount of such premiums
would equal the total amount of payments that
would be made under this title in the year.
‘‘(3) SELECTION
OF
GEOGRAPHIC
LOCAL-
ITIES.—For purposes of this subsection, the Sec-
retary shall use contiguous geographic localities that
are not smaller than metropolitan statistical areas.
284
‘‘(d) PUBLICATION OF RATES.—The Secretary shall
during July of each year (beginning in 1996) publish the
applicable premiums under this section for months in the
succeeding year for the different localities used under sub-
section (c).
‘‘SEC. 2232. PAYMENT OF PREMIUMS.
‘‘(a) IN GENERAL.—Subject to subsection (c), pre-
miums under this title shall be paid at the rates specified
under section 2231 to the Secretary at such times, and
in such manner, as the Secretary shall prescribe by regula-
tions.
‘‘(b) INTEREST FOR LATE PAYMENT.—In the case
premiums are not paid on a timely basis, the Secretary
may impose a reasonable late charge and interest at a rate
(estimated by the Secretary) not to exceed 125 percent
of the average market yield described in the third sentence
of section 1817(c).
‘‘(c) SUSPENSION OF PREMIUMS.—Payment of pre-
miums under this section shall be suspended for any
month for which the eligible individual establishes that the
individual—
‘‘(1) is entitled to medical assistance under a
State plan approved under title XIX, or
‘‘(2) is entitled to benefits under a group health
plan (as defined in section 5000(b)(1) of the Inter-
285
nal Revenue Code of 1986), including benefits under
continuation coverage.
‘‘(d) DEPOSIT INTO TRUST FUND.—Premiums col-
lected under this section shall be deposited in the Chil-
dren’s Health Insurance Trust Fund.
‘‘SEC. 2233. CHILDREN’S HEALTH INSURANCE TRUST FUND.
‘‘(a) ESTABLISHMENT.—(1) There is hereby created
on the books of the Treasury of the United States a trust
fund to be known as the ‘Children’s Health Insurance
Trust Fund’ (in this section referred to as the ‘Trust
Fund’). The Trust Fund shall consist of such gifts and
bequests as may be made as provided in section 201(i)(1)
and amounts appropriated under paragraph (2).
‘‘(2) There are authorized to be appropriated for each
fiscal year out of any moneys in the Treasury not other-
wise appropriated to the Trust Fund a Government con-
tribution equal to the amount of expenditures made under
this title in the fiscal year, reduced by the amount of the
premiums deposited in the Trust Fund under section
2232(d).
‘‘(b) INCORPORATION OF PROVISIONS.—
‘‘(1) IN GENERAL.—Subject to paragraph (2),
the provisions of subsections (b) through (j) of sec-
tion 1817 shall apply to the Trust Fund in the same