I 
110TH CONGRESS 
1ST SESSION H. R. 1741 
To impose a 2-year moratorium on implementation of a proposed rule relating 
to the Federal-State financial partnerships under Medicaid and the State 
Children’s Health Insurance Program. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 28, 2007 
Mr. KLEIN of Florida (for himself, Ms. ROS-LEHTINEN, Ms. WASSERMAN 
SCHULTZ, Mr. CRENSHAW, and Mr. SALAZAR) introduced the following 
bill; which was referred to the Committee on Energy and Commerce 
A BILL 
To impose a 2-year moratorium on implementation of a 
proposed rule relating to the Federal-State financial 
partnerships under Medicaid and the State Children’s 
Health Insurance Program. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. MORATORIUM ON IMPLEMENTATION OF PRO-
POSED RULE RELATING TO THE FEDERAL- 
STATE FINANCIAL PARTNERSHIPS UNDER 
MEDICAID AND SCHIP. 
(a) FINDINGS.—Congress makes the following find-
ings: 
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(1) The proposed rule published on January 18, 
2007, on pages 2236 through 2248 of volume 72, 
Federal Register (relating to parts 433, 447, and 
457 of title 42, Code of Federal Regulations) would 
significantly change the Federal-State financial part-
nership under the Medicaid and the State Children’s 
Health Insurance Programs by— 
(A) imposing a cost limit on payments 
made under such programs to governmentally 
operated providers; 
(B) limiting the permissible sources of the 
non-Federal shares required under such pro-
grams and the types of entities permitted to 
contribute to such shares; and 
(C) imposing new requirements on partici-
pating providers under such programs. 
(2) More time is needed to determine how the 
proposed rule would impact States, particularly with 
respect to those States with Medicaid or State Chil-
dren’s Health Insurance Programs that are oper-
ating under financing arrangements that have been 
approved by the Secretary of Health and Human 
Services through the waiver process established 
under section 1115 of the Social Security Act and 
have been properly following the intent and purpose 
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for which such funding arrangements were estab-
lished. 
(3) Permitting the proposed rule to take effect 
without allowing sufficient time for further study of 
the effect of the implementation of the rule could 
have a negative impact for States, particularly 
States with Medicaid or State Children’s Health In-
surance Programs operating under financing ar-
rangements that would be affected by such rule and 
that have been approved by the Secretary of Health 
and Human Services through the section 1115 waiv-
er process. 
(b) PROHIBITION
AGAINST
MEDICAID
RESTRIC-
TIONS.—The Secretary of Health and Human Services 
shall not, at any time before the end of the 2-year period 
beginning on the date of the enactment of this Act, take 
any action to finalize (or otherwise implement) provisions 
contained in the proposed rule published on January 18, 
2007, on pages 2236 through 2248 of volume 72, Federal 
Register (relating to parts 433, 447, and 457 of title 42, 
Code of Federal Regulations) or to restrict payments 
under title XIX of the Social Security Act for graduate 
medical education. 
Æ 
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