To provide certain temporary increases in the Federal medical assistance percentage (FMAP) under the Medicaid Program for fiscal year 2002 to help States finance increases in enrollment due to rising unemployment and to prevent reductions in health insurance coverage due to State budget crises.

December 5, 2001

Mr. KING (for himself, Mr. BROWN of Ohio, Mr. WALSH, Mr. DINGELL, Mr. HOUGHTON, Mr. WAXMAN, Mrs. KELLY, Mr. BONIOR, Mr. SWEENEY, Mr. NADLER, Mr. QUINN, Mr. PALLONE, Mr. GRUCCI, Mrs. CAPPS, Mr. SERRANO, Mrs. MALONEY of New York, Mr. BOUCHER, Mr. TOWNS, Mr. BARRETT of Wisconsin, Mr. MCNULTY, Mr. FARR of California, Mr. ACKERMAN, Mr. STENHOLM, Mr. ISRAEL, Mr. SHOWS, Mr. ENGEL, Mrs. MCCARTHY of New York, Mr. GREEN of Texas, Mr. STRICKLAND, Mr. GILMAN, Mr. ALLEN, Mr. HINCHEY, Mr. STUPAK, Ms. LEE, Mr. RANGEL, Mr. REYNOLDS, Mrs. LOWEY, Mr. WEINER, Mr. CROWLEY, Ms. VELAZQUEZ, Mr. MCHUGH, and Mr. FOLEY) introduced the following bill; which was referred to the Committee on Energy and Commerce

To provide certain temporary increases in the Federal medical assistance percentage (FMAP) under the Medicaid Program for fiscal year 2002 to help States finance increases in enrollment due to rising unemployment and to prevent reductions in health insurance coverage due to State budget crises.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `State Budget Relief Act of 2001'.

SEC. 2. TEMPORARY INCREASES OF MEDICAID FMAP FOR FISCAL YEAR 2002.

(a) PERMITTING MAINTENANCE OF FISCAL YEAR 2001 FMAP- Notwithstanding any other provision of law, but subject to subsection (d), if the FMAP determined without regard to this section for a State for fiscal year 2002 is less than the FMAP as so determined for fiscal year 2001, the FMAP for the State for fiscal year 2001 shall be substituted for the State's FMAP for fiscal year 2002, before the application of this section.

(b) GENERAL 2 PERCENTAGE POINT INCREASE- Notwithstanding any other provision of law, but subject to subsections (d) and (e), for each State for each calendar quarter in fiscal year 2002, the FMAP (taking into account the application of subsection (a)) shall be increased by 2 percentage points.

(c) FURTHER INCREASE FOR STATES WITH HIGH UNEMPLOYMENT RATES-

(1) IN GENERAL- Notwithstanding any other provision of law, but subject to subsections (d) and (e), if a State is a high unemployment State for a calendar quarter in fiscal year 2002, then the FMAP for that State for that calendar quarter and for any subsequent calendar quarter in such fiscal year regardless of whether the State continues to be high unemployment State for that subsequent calendar quarter shall be increased (after the application of subsections (a) and (b)) by 2.5 percentage points.

(2) HIGH UNEMPLOYMENT STATE- For purposes of this subsection, a State is a high unemployment State for a calendar quarter if, for any 3 consecutive month period beginning on or after June 2001 and ending with the second month before the beginning of the calendar quarter, the State has an average seasonally adjusted unemployment rate that exceeds the average weighted unemployment rate during such period. Such unemployment rates for such months shall be determined based on publications of the Bureau of Labor Statistics of the Department of Labor.

(3) AVERAGE WEIGHTED UNEMPLOYMENT RATE DEFINED- For purposes of paragraph (2), the `average weighted unemployment rate' for a period is--

(A) the sum of the seasonally adjusted number of unemployed civilians in each State and the District of Columbia for the period, divided by

(B) the sum of the civilian labor force in each State and the District of Columbia for the period.

(d) SCOPE OF APPLICATION- The increases in the FMAP for a State under this section shall apply only for purposes of title XIX of the Social Security Act and shall not apply with respect to--

(1) disproportionate share hospital payments described in section 1923 of such Act; and

(2) payments under titles IV and XXI of such Act.

(e) STATE ELIGIBILITY- A State is eligible for an increase in its FMAP under subsection (b) or (c) or an increase in a cap amount under subsection (f) only if the eligibility under its State plan under title XIX of the Social Security Act (including any waiver under such title or under section 1115 of such Act) is no more restrictive than the eligibility under such plan (or waiver) as in effect on October 1, 2001.

(f) ONE-YEAR INCREASE IN CAP ON MEDICAID PAYMENTS TO TERRITORIES- Notwithstanding any other provision of law, but subject to section (e), with respect to fiscal year 2002, the amounts otherwise determined for Puerto Rico, the Virgin Islands, Guam, the Northern Mariana Islands, and American Samoa under subsections (f) and (g)(2) of section 1108 of the Social Security Act (42 U.S.C 1308) shall each be increased by 9 percent of such amounts.

(g) DEFINITIONS- For purposes of this section:

(1) FMAP- The term `FMAP' means the Federal medical assistance percentage, as defined in section 1905(b) of the Social Security Act (42 U.S.C. 1396d(b)).

(2) STATE- The term `State' has the meaning given such term for purposes of title XIX of the Social Security Act.

END