ance is made available for an individual or family who is
eligible for such assistance under section 1902(a)(10)(A).
‘‘(d) PRESUMPTIVE ELIGIBILITY.—Each individual
that indicates on a form described in paragraph (2) of sec-
tion 301(c) of Basic Access to Secure Health Insurance
Coverage Health Plan (BASIC Health Plan) Act that the
individual believes he or she (and the individual’s family,
if applicable) is eligible for medical assistance under this
section, and that is forwarded to a State agency in accord-
ance with paragraph (1)(B) of such section, shall be pro-
vided with a period of presumptive eligibility for coverage
under this section (in the same manner as such a period
is imposed under sections 1920 and 1920A) until such
time as the State makes a determination as to such eligi-
bility.
‘‘(e) NO EFFECT ON COVERAGE OFFERED UNDER
A WAIVER.—Nothing in this section shall be construed as
affecting any medical assistance made available under a
waiver of the requirements of this title (under section
1115 or otherwise) to an individual or family described
in subsection (a).’’.
(2) ESTABLISHMENT OF OPTIONAL ELIGIBILITY
CATEGORY.—
(A) 
IN
GENERAL.—Section
1902(a)(10)(A)(ii) of the Social Security Act
(42 U.S.C. 1396a(a)(10)(A)(ii)), as amended by
section 201(b)(1)(C), is amended—
(i) by striking ‘‘or’’ at the end of sub-
clause (XVIII);
(ii) by striking the semicolon at the
end of subclause (XIX) and inserting ‘‘,
or’’; and
(iii) by adding at the end the fol-
lowing new subclause:
‘‘(XX) who are individuals de-
scribed in section 1936 (subject to
payment of a premium determined in
accordance with that section);’’.
(B) CONFORMING AMENDMENTS.—
(i) ELIGIBILITY
CATEGORIES.—Sec-
tion 1905(a) of such Act (42 U.S.C.
1396d(a)), 
as 
amended 
by 
section
201(b)(3), is amended, in the matter be-
fore paragraph (1)—
(I) by striking ‘‘or’’ at the end of
clause (xii);
(II) by inserting ‘‘or’’ at the end
of clause (xiii); and
(III) by inserting after clause
(xiii) the following new clause:
‘‘(xiv) who are individuals described in section
1902(aa)(1),’’.
(ii) INCOME
LIMITATIONS.—Section
1903(f)(4) 
of 
such 
Act 
(42 
U.S.C.
1396b(f)(4)), 
as 
amended 
by 
section
201(b)(3)(B), is amended by inserting
‘‘1902(a)(10)(A)(ii)(XX),’’ 
after
‘‘1902(a)(10)(A)(ii)(XIX),’’.
(b) COVERAGE UNDER SCHIP.—Section 2111 of
such Act, as amended by section 201(c), is amended—
(1) in subsection (a), by adding at the end the
following new paragraph:
‘‘(3) OTHER INDIVIDUALS AND FAMILIES.—
‘‘(A) IN GENERAL.—Notwithstanding any
other provision of this title, with respect to a
State that does not provide medical assistance
under section 1936 for an individual or family
described in subsection (a) of that section, the
State shall make available through the payment
of a premium determined in accordance with
section 1936(b), health coverage under this title
for such an individual or family through an
amendment to its State child health plan under
section 2102 in accordance with this section
and the requirements of section 1936.
‘‘(B) DETERMINATION OF PREMIUM.—For
purposes of determining a premium for the pur-
chase of health coverage under this title, para-
graph (1) of section 1936(b) shall be applied by
substituting ‘pooled average cost of health cov-
erage’ for ‘pooled average cost of medical assist-
ance’.’’; and
(2) in subsection (b), by adding at the end the
following new paragraph:
‘‘(4) TREATMENT OF OTHER INDIVIDUALS AND
FAMILIES.—A State child health plan shall treat,
and shall apply this section to, an individual or fam-
ily described in subsection (a)(3) in the same man-
ner as such plan treats and applies this section to
a family described in section 1902(k)(1).’’.
(c) EMPLOYER RESPONSIBILITIES.—
(1) IN
GENERAL.—Beginning with calendar
year 2002, each covered employer shall—
(A) inform, through the use of the form
described in paragraph (2), each individual in
the person’s employ who is not eligible for
health benefits coverage provided by such em-
ployer, of the opportunity to purchase health
benefits coverage under section 1936 or 2111 of
the Social Security Act;
(B) forward all such forms on which an in-
dividual indicates that the individual believes
they are eligible for coverage under such sec-
tions of the Social Security Act to the appro-
priate State agency, unless the individual spe-
cifically declines such coverage on such form;
and
(C) with respect to each such individual
who purchases such coverage (for such indi-
vidual or their family), withhold an amount
equal to the premium required by the State for
the coverage from the individual’s wages and
forward such amount to the appropriate place
(as determined by the State).
(2) FORM DESCRIBED.—The form described in
this paragraph is a form that—
(A) is developed by the State in which the
covered employer resides in accordance with
guidelines issued by the Secretary of Health
and Human Services;
(B) describes the health benefits coverage
available under sections 1936 and 2111 of the
Social Security Act; and
(C) provides an individual with an oppor-
tunity to indicate on the form if the individual