develop a State plan to offer universal comprehensive 
health care, with simplified administration, and to improve 
the cost-effectiveness of the health care delivery system. 
‘‘(b) CONTENTS.—The Secretary may not approve 
such a State planning grant for a State unless the applica-
tion for the grant includes or provides for the following: 
‘‘(1) BUDGET.—A budget and a budget jus-
tification. 
‘‘(2) PLANNING
PROCESS.—A description of 
how under the grant the State shall— 
‘‘(A) identify options to provide a uni-
versal, comprehensive, and cost-effective system 
of health care, with simplified administration, 
that is affordable and accessible to all eligible 
beneficiaries in the State; and 
‘‘(B) conduct an analysis that compares 
projected overall health expenditures over a 7- 
year period under the proposed system with the 
projected overall health expenditures that would 
otherwise occur during such period. 
‘‘(3) OPPORTUNITY
FOR
PUBLIC
PARTICIPA-
TION.—Assurances that the State will include a 
process for public contribution and participation in 
the planning process.
‘‘(c) NUMBER OF STATES; PERIOD OF GRANT.—The 
Secretary may not award State planning grants under this 
section to more than 10 States. A State planning grant 
under this section shall be effective for a period of up to 
30 months. In awarding State planning grants under this 
section the Secretary shall give preference to States from 
a variety of geographic areas in the United States. 
‘‘(d) AMOUNT.—The amount of a State planning 
grant under this section to a State may not exceed 
$3,750,000. 
‘‘(e) TECHNICAL ASSISTANCE.—The Secretary shall 
provide States with technical assistance in applying for 
and implementing State planning grants under this sec-
tion. At the request of the Secretary, other Departments 
and Offices of the Federal Government shall provide 
States with such technical assistance. 
‘‘SEC. 2202. DEMONSTRATION GRANTS. 
‘‘(a) APPLICATION.—A State that has developed a 
State plan may apply to the Secretary for approval of a 
demonstration grant under this section to achieve a cost- 
effective delivery system of universal, comprehensive 
health care with simplified administration. The Secretary 
shall notify the chief executive officer of all States of the 
availability of demonstration grants under this section.
‘‘(b) APPROVAL.—The Secretary shall approve the 
applications of not more than 5 States under this section. 
In approving grants under this section the Secretary shall 
give preference to States from a variety of geographic 
areas in the United States. If the Secretary determines 
that a State no longer meets the conditions for approval 
of the grant, the Secretary shall notify the State of such 
determination and provide the State with an opportunity 
to correct deficiencies in a timely manner. If the Secretary 
further determines that a State has not corrected such de-
ficiencies in a timely manner, the Secretary shall termi-
nate the grant (including waivers authorized under the 
grant). 
‘‘(c) PERIOD.—A demonstration grant approved 
under this section shall be effective for 7 years from the 
date of final approval of the demonstration grant applica-
tion under subsection (b). 
‘‘(d) STATE PLAN REQUIRED.—The Secretary may 
not approve a demonstration grant under this section un-
less the State has a State plan to carry out the grant con-
sistent with the requirements of section 2203. 
‘‘(e) FUNDING.— 
‘‘(1) TRANSITIONAL
GRANT
AMOUNT.—The 
amount awarded under this section to a State with 
a demonstration grant approved under this section