Laws: Cases and Codes : U.S. Code : Title 42 : Section 1397ee


   
U.S. Code as of: 01/19/04
Section 1397ee. Payments to States

    (a) Payments
      (1) In general
        Subject to the succeeding provisions of this section, the
      Secretary shall pay to each State with a plan approved under this
      subchapter, from its allotment under section 1397dd of this
      title, an amount for each quarter equal to the enhanced FMAP (or,
      in the case of expenditures described in subparagraph (B), the
      Federal medical assistance percentage (as defined in the first
      sentence of section 1396d(b) of this title)) of expenditures in
      the quarter - 
          (A) for child health assistance under the plan for targeted
        low-income children in the form of providing medical assistance
        for which payment is made on the basis of an enhanced FMAP
        under the fourth sentence of section 1396d(b) of this title;
          (B) for the provision of medical assistance on behalf of a
        child during a presumptive eligibility period under section
        1396r-1a of this title;
          (C) for child health assistance under the plan for targeted
        low-income children in the form of providing health benefits
        coverage that meets the requirements of section 1397cc of this
        title; and
          (D) only to the extent permitted consistent with subsection
        (c) of this section - 
            (i) for payment for other child health assistance for
          targeted low-income children;
            (ii) for expenditures for health services initiatives under
          the plan for improving the health of children (including
          targeted low-income children and other low-income children);
            (iii) for expenditures for outreach activities as provided
          in section 1397bb(c)(1) of this title under the plan; and
            (iv) for other reasonable costs incurred by the State to
          administer the plan.
      (2) Order of payments
        Payments under paragraph (1) from a State's allotment shall be
      made in the following order:
          (A) First, for expenditures for items described in paragraph
        (1)(A).
          (B) Second, for expenditures for items described in paragraph
        (1)(B).
          (C) Third, for expenditures for items described in paragraph
        (1)(C).
          (D) Fourth, for expenditures for items described in paragraph
        (1)(D).
    (b) Enhanced FMAP
      For purposes of subsection (a) of this section, the "enhanced
    FMAP", for a State for a fiscal year, is equal to the Federal
    medical assistance percentage (as defined in the first sentence of
    section 1396d(b) of this title) for the State increased by a number
    of percentage points equal to 30 percent of the number of
    percentage points by which (1) such Federal medical assistance
    percentage for the State, is less than (2) 100 percent; but in no
    case shall the enhanced FMAP for a State exceed 85 percent.
    (c) Limitation on certain payments for certain expenditures
      (1) General limitations
        Funds provided to a State under this subchapter shall only be
      used to carry out the purposes of this subchapter (as described
      in section 1397aa of this title), and any health insurance
      coverage provided with such funds may include coverage of
      abortion only if necessary to save the life of the mother or if
      the pregnancy is the result of an act of rape or incest.
      (2) Limitation on expenditures not used for medicaid or health
        insurance assistance
        (A) In general
          Except as provided in this paragraph, the amount of payment
        that may be made under subsection (a) of this section for a
        fiscal year for expenditures for items described in paragraph
        (1)(D) of such subsection shall not exceed 10 percent of the
        total amount of expenditures for which payment is made under
        subparagraphs (A), (C), and (D) of paragraph (1) of such
        subsection.
        (B) Waiver authorized for cost-effective alternative
          The limitation under subparagraph (A) on expenditures for
        items described in subsection (a)(1)(D) of this section shall
        not apply to the extent that a State establishes to the
        satisfaction of the Secretary that - 
            (i) coverage provided to targeted low-income children
          through such expenditures meets the requirements of section
          1397cc of this title;
            (ii) the cost of such coverage is not greater, on an
          average per child basis, than the cost of coverage that would
          otherwise be provided under section 1397cc of this title; and
            (iii) such coverage is provided through the use of a
          community-based health delivery system, such as through
          contracts with health centers receiving funds under section
          254b of this title or with hospitals such as those that
          receive disproportionate share payment adjustments under
          section 1395ww(d)(5)(F) or 1396r-4 of this title.
      (3) Waiver for purchase of family coverage
        Payment may be made to a State under subsection (a)(1) of this
      section for the purchase of family coverage under a group health
      plan or health insurance coverage that includes coverage of
      targeted low-income children only if the State establishes to the
      satisfaction of the Secretary that - 
          (A) purchase of such coverage is cost-effective relative to
        the amounts that the State would have paid to obtain comparable
        coverage only of the targeted low-income children involved, and
          (B) such coverage shall not be provided if it would otherwise
        substitute for health insurance coverage that would be provided
        to such children but for the purchase of family coverage.
      (4) Use of non-Federal funds for State matching requirement
        Amounts provided by the Federal Government, or services
      assisted or subsidized to any significant extent by the Federal
      Government, may not be included in determining the amount of
      non-Federal contributions required under subsection (a) of this
      section.
      (5) Offset of receipts attributable to premiums and other
        cost-sharing
        For purposes of subsection (a) of this section, the amount of
      the expenditures under the plan shall be reduced by the amount of
      any premiums and other cost-sharing received by the State.
      (6) Prevention of duplicative payments
        (A) Other health plans
          No payment shall be made to a State under this section for
        expenditures for child health assistance provided for a
        targeted low-income child under its plan to the extent that a
        private insurer (as defined by the Secretary by regulation and
        including a group health plan (as defined in section 1167(1) of
        title 29), a service benefit plan, and a health maintenance
        organization) would have been obligated to provide such
        assistance but for a provision of its insurance contract which
        has the effect of limiting or excluding such obligation because
        the individual is eligible for or is provided child health
        assistance under the plan.
        (B) Other Federal governmental programs
          Except as provided in subparagraph (A) or (B) of subsection
        (a)(1) of this section or any other provision of law, no
        payment shall be made to a State under this section for
        expenditures for child health assistance provided for a
        targeted low-income child under its plan to the extent that
        payment has been made or can reasonably be expected to be made
        promptly (as determined in accordance with regulations) under
        any other federally operated or financed health care insurance
        program, other than an insurance program operated or financed
        by the Indian Health Service, as identified by the Secretary.
        For purposes of this paragraph, rules similar to the rules for
        overpayments under section 1396b(d)(2) of this title shall
        apply.
      (7) Limitation on payment for abortions
        (A) In general
          Payment shall not be made to a State under this section for
        any amount expended under the State plan to pay for any
        abortion or to assist in the purchase, in whole or in part, of
        health benefit coverage that includes coverage of abortion.
        (B) Exception
          Subparagraph (A) shall not apply to an abortion only if
        necessary to save the life of the mother or if the pregnancy is
        the result of an act of rape or incest.
        (C) Rule of construction
          Nothing in this section shall be construed as affecting the
        expenditure by a State, locality, or private person or entity
        of State, local, or private funds (other than funds expended
        under the State plan) for any abortion or for health benefits
        coverage that includes coverage of abortion.
    (d) Maintenance of effort
      (1) In medicaid eligibility standards
        No payment may be made under subsection (a) of this section
      with respect to child health assistance provided under a State
      child health plan if the State adopts income and resource
      standards and methodologies for purposes of determining a child's
      eligibility for medical assistance under the State plan under
      subchapter XIX of this chapter that are more restrictive than
      those applied as of June 1, 1997.
      (2) In amounts of payment expended for certain State-funded
        health insurance programs for children
        (A) In general
          The amount of the allotment for a State in a fiscal year
        (beginning with fiscal year 1999) shall be reduced by the
        amount by which - 
            (i) the total of the State children's health insurance
          expenditures in the preceding fiscal year, is less than
            (ii) the total of such expenditures in fiscal year 1996.
        (B) State children's health insurance expenditures
          The term "State children's health insurance expenditures"
        means the following:
            (i) The State share of expenditures under this subchapter.
            (ii) The State share of expenditures under subchapter XIX
          of this chapter that are attributable to an enhanced FMAP
          under the fourth sentence of section 1396d(b) of this title.
            (iii) State expenditures under health benefits coverage
          under an existing comprehensive State-based program,
          described in section 1397cc(d) of this title.
    (e) Advance payment; retrospective adjustment
      The Secretary may make payments under this section for each
    quarter on the basis of advance estimates of expenditures submitted
    by the State and such other investigation as the Secretary may find
    necessary, and may reduce or increase the payments as necessary to
    adjust for any overpayment or underpayment for prior quarters.
    (f) Flexibility in submittal of claims
      Nothing in this section or subsections (e) and (f) of section
    1397dd of this title shall be construed as preventing a State from
    claiming as expenditures in the quarter expenditures that were
    incurred in a previous quarter.
    (g) Authority for qualifying States to use certain funds for
      medicaid expenditures
      (1) State option
        (A) In general
          Notwithstanding any other provision of law, a qualifying
        State (as defined in paragraph (2)) may elect to use not more
        than 20 percent of any allotment under section 1397dd of this
        title for fiscal year 1998, 1999, 2000, or 2001 (insofar as it
        is available under subsections (e) and (g) of such section) for
        payments under subchapter XIX of this chapter in accordance
        with subparagraph (B), instead of for expenditures under this
        subchapter.
        (B) Payments to States
          (i) In general
            In the case of a qualifying State that has elected the
          option described in subparagraph (A), subject to the
          availability of funds under such subparagraph with respect to
          the State, the Secretary shall pay the State an amount each
          quarter equal to the additional amount that would have been
          paid to the State under subchapter XIX of this chapter with
          respect to expenditures described in clause (ii) if the
          enhanced FMAP (as determined under subsection (b) of this
          section) had been substituted for the Federal medical
          assistance percentage (as defined in section 1396d(b) of this
          title).
          (ii) Expenditures described
            For purposes of this subparagraph, the expenditures
          described in this clause are expenditures, made after August
          15, 2003, and during the period in which funds are available
          to the qualifying State for use under subparagraph (A), for
          medical assistance under subchapter XIX of this chapter to
          individuals who have not attained age 19 and whose family
          income exceeds 150 percent of the poverty line.
          (iii) No impact on determination of budget neutrality for
            waivers
            In the case of a qualifying State that uses amounts paid
          under this subsection for expenditures described in clause
          (ii) that are incurred under a waiver approved for the State,
          any budget neutrality determinations with respect to such
          waiver shall be determined without regard to such amounts
          paid.
      (2) Qualifying State
        In this subsection, the term "qualifying State" means a State
      that, on and after April 15, 1997, has an income eligibility
      standard that is at least 184 percent of the poverty line with
      respect to any 1 or more categories of children (other than
      infants) who are eligible for medical assistance under section
      1396a(a)(10)(A) of this title or, in the case of a State that has
      a statewide waiver in effect under section 1315 of this title
      with respect to subchapter XIX of this chapter that was first
      implemented on August 1, 1994, or July 1, 1995, has an income
      eligibility standard under such waiver for children that is at
      least 185 percent of the poverty line, or, in the case of a State
      that has a statewide waiver in effect under section 1315 of this
      title with respect to subchapter XIX of this chapter that was
      first implemented on January 1, 1994, has an income eligibility
      standard under such waiver for children who lack health insurance
      that is at least 185 percent of the poverty line, or, in the case
      of a State that had a statewide waiver in effect under section
      1315 of this title with respect to subchapter XIX of this chapter
      that was first implemented on October 1, 1993, had an income
      eligibility standard under such waiver for children that was at
      least 185 percent of the poverty line and on and after July 1,
      1998, has an income eligibility standard for children under
      section 1396a(a)(10)(A) of this title or a statewide waiver in
      effect under section 1315 of this title with respect to
      subchapter XIX of this chapter that is at least 185 percent of
      the poverty line.
      (3) Construction
        Nothing in paragraphs (1) and (2) shall be construed as
      modifying the requirements applicable to States implementing
      State child health plans under this subchapter.



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