Detailed Instructions: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Problem:SECTION 1. STRENGTHENING THE MEDICAID THIRD-PARTY LIABILITY
REQUIREMENT.

(a) State and Health Provider Right To Make Inquiries and Third-
Party Responsibilities.--Section 1902 of the Social Security Act (42
U.S.C. 1396a) is amended--
(1) in subsection (a)(25)--
(A) by striking ''and'' at the end of subparagraph
(H);
(B) by adding ''and'' at the end of subparagraph
(I); and
(C) by adding at the end the following new
subparagraph:
''(J) that the State shall provide assurances
satisfactory to the Secretary that the State has in
effect laws requiring the State to make inquiries to
third parties, including health insurers, self-insured
plans, group health plans (as defined in section 607(1)
of the Employee Retirement Income Security Act of
1974), service benefit plans, managed care
organizations, pharmacy benefit managers, or other
parties that are, by statute, contract, or agreement,
legally responsible for payment of a claim for a health
care item or service, operating in any State;''; and
(2) by adding at the end the following new subsection:
''(dd) Responsibilities of Third Parties.--
''(1) In general.--Third parties described in subsection
(a)(25)(J) shall--
''(A) provide, with respect to individuals who are
eligible for, or are provided, medical assistance under
the State plan, upon the request of the State,
information to determine during what period the
individual (or the individual's spouse or dependents)
may be (or may have been) covered by a health insurer
and the nature of the coverage that is or was provided
by the health insurer (including the name, address, and
identifying number of the plan) in a manner prescribed
by the Secretary;
''(B) accept the State's right of recovery and the
assignment to the State of any right of an individual
or other entity to payment from the party for an item
or service for which payment has been made under the
State plan;
''(C) respond to any inquiry by the State regarding
a claim for payment for any health care item or service
that is submitted not later than 3 years after the date
of the provision of such health care item or service;
and
''(D) agree not to deny a claim submitted by the
State solely on the basis of the date of submission of
the claim, the type or format of the claim form, or a
failure to present proper documentation at the point-
of-sale that is the basis of the claim, if--
''(i) the claim is submitted by the State
within the 3-year period beginning on the date
on which the item or service was furnished; and
''(ii) any action by the State to enforce
its rights with respect to such claim is
commenced within 6 years of the State's
submission of such claim.
''(2) Inquiries of third parties.--Entities providing
services and items to individuals receiving medical assistance
under this title (or to individuals the entity reasonably
believes may receive medical assistance under this title) may
make inquiries to third parties described in subsection
(a)(15)(J) that are, by statute, contract, or agreement,
legally responsible for payment of a claim, operating in any
State, for the purpose of determining eligibility and coverage
for those individuals.''.
(b) Referrals to the Secretary; Maintaining the Integrity of the
Medicaid Program.--Section 1909 of such Act (42 U.S.C. 1396h) is
amended--
(1) in subsection (b), by adding at the end the following
new paragraph:
''(5) The law contains a requirement for making a referral
to the Secretary for the purposes of subsection (e).''; and
(2) by adding at the end the following new subsection:
''(e) Federal Civil Penalties and Payments to States.--
''(1) Federal civil penalties.--
''(A) In general.--Upon referral from a State, if
the Secretary finds that a third party, including any
third party described in section 1902(a)(25)(J), that
is, by statute, contract, or agreement, legally
responsible for payment of a claim for a health care
item or service, failed to reply to inquiries about an
individual sent pursuant to such section, the Secretary
shall impose a civil penalty upon that third party of
not less than $5,000 and not more than $10,000, plus 3
times the amount of the claim for that individual
without regard to any other legal responsibility of the
third party for payment of a claim for a health care
item or service for that individual.
''(B) Failure defined.--For purposes of
subparagraph (A), the term 'failed' means the failure
of a third party described to provide the information
required by section 1902(a)(25)(J) about an individual
within 10 days of the date the inquiry is first made to
the party.
''(2) Payments to states.--The Secretary shall pay a State
an amount equal to the Federal medical assistance percentage of
any amount obligated to the United States under paragraph
(1).''.
(c) Effective Date.--The amendments made by this section shall take
effect on January 1, 2009.
Solution:
Amends title XIX (Medicaid) of the Social Security Act to direct state Medicaid plans to require the state to provide the Secretary of Health and Human Services with satisfactory assurances that it has in effect laws requiring the state to make inquiries to third parties, including health insurers, self-insured plans, group health plans, or other parties operating in any state that are responsible for payment of a claim for a health care item or service.

Requires third parties to: (1) provide, upon state request, information about Medicaid-eligible or -receiving individuals to determine during what period the individual (or the spouse or dependents) may be (or may have been) covered by a health insurer, as well as the nature of such coverage; (2) accept the state's right of recovery and the assignment to the state of any right of an individual or other entity to payment from the party for an item or service for which payment has been made under the state plan; and (3) agree not to deny a claim submitted by the state solely on the basis of its date of submission, the type or format of the claim form, or a failure to present proper documentation at the point-of-sale that is the basis of the claim, if the claim is submitted by the state within three years after the item or service was furnished, and any action by the state to enforce its rights is commenced within six years of its submission of the claim.

Establishes a civil monetary penalty for a third party's failure to reply to inquiries required by this Act.