CHILDREN'S HEALTH INSURANCE PROVIDES SECURITY (CHIPS) ACT
(Senate - May 01, 1997)

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[Pages S3926-S3927]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       CHILDREN'S HEALTH INSURANCE PROVIDES SECURITY (CHIPS) ACT

 Mr. CHAFEE. Mr. President, yesterday I introduced S. 674 along 
with Senator Rockefeller and others. I ask that the text of bill S. 674 
be printed in the Record.
  The text of the bill follows:

                                 S. 674

       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 ``Children's Health Insurance 
     Provides Security (CHIPS) Act of 1997''.

     SEC. 2. ENCOURAGING STATES THROUGH INCREASED FEDERAL MEDICAL 
                   ASSISTANCE PERCENTAGE (FMAP) TO EXPAND MEDICAID 
                   COVERAGE OF CHILDREN AND PREGNANT WOMEN.

       (a) Increased FMAP for Medical Assistance for Certain 
     Individuals.--Section 1905 of the Social Security Act (42 
     U.S.C. 1396d) is amended--
       (1) in subsection (b), by adding at the end the following 
     new sentence: ``Notwithstanding the first sentence of this 
     subsection, in the case of a State plan that meets the 
     conditions described in subsection (t)(1), with respect to 
     expenditures for medical assistance for individuals within an 
     optional coverage group (as defined in subsection (t)(2)) the 
     Federal medical assistance percentage is equal to the 
     enhanced medical assistance

[[Page S3927]]

     percentage described in subsection (t)(3).''; and
       (2) by adding at the end the following new subsection:
       ``(t)(1) The conditions described in this paragraph for a 
     State plan are as follows:
       ``(A) The plan provides (either through exercise of the 
     option under section 1902(l)(1)(D) or authority under section 
     1902(r)(2)) for coverage under section 1902(l)(1)(D) of 
     individuals under 19 years of age, regardless of date of 
     birth.
       ``(B) The plan provides under section 1902(e)(12) for 
     continuous eligibility for a period of 12 months (under 
     subparagraph (A) of such section) of all individuals under 19 
     years of age who are determined to be eligible for benefits 
     under a State plan approved under this title under section 
     1902(a)(10)(A).
       ``(2) For purposes of subsection (b), the term `optional 
     coverage group' means individuals described in each of the 
     following subparagraphs:
       ``(A) Pregnant women with family income between 133 percent 
     and 150 percent of poverty line.--Women described in 
     subparagraph (A) of section 1902(l)(1) whose family income 
     exceeds 133 percent, but does not exceed 150 percent, of the 
     poverty line for a family of the size involved.
       ``(B) Infants with family income between 133 percent and 
     150 percent of poverty line.--Infants described in 
     subparagraph (B) of section 1902(l)(1) whose family income 
     exceeds 133 percent, but does not exceed 150 percent, of the 
     poverty line for a family of the size involved.
       ``(C) Children under 6 years of age with family income 
     between 133 percent and 150 percent of poverty line.--
     Children described in subparagraph (C) of section 1902(l)(1) 
     whose family income exceeds 133 percent, but does not exceed 
     150 percent, of the poverty line for a family of the size 
     involved.
       ``(D) Older children with family income between 100 percent 
     and 150 percent of poverty line.--Children described in 
     subparagraph (D) of section 1902(l)(1), who are not described 
     in any of subclauses (I) through (III) of section 
     1902(a)(10)(A)(i), and whose family income exceeds 100 
     percent, but does not exceed 150 percent, of the poverty line 
     for a family of the size involved.
       ``(3) The enhanced medical assistance percentage described 
     in this paragraph for a State is equal to the Federal medical 
     assistance percentage (as defined in the first sentence of 
     subsection (b)) for the State increased (but not above 90 
     percent) by the number of percentage points equal to 30 
     percent of the number of percentage points by which (A) such 
     Federal medical assistance percentage for the State, is less 
     than (B) 100 percent.''.
       (b) State Option to Expand Eligibility to 150 Percent of 
     Poverty Line For Children Over 1 Year of Age.--Section 
     1902(l)(2) of such Act (42 U.S.C. 1396a(l)(2)) is amended--
       (1) in subparagraph (B), by striking ``equal to 133 
     percent'' and inserting ``a percentage (specified by the 
     State and not less than 133 percent and not more than 150 
     percent)'', and
       (2) in subparagraph (C), by striking ``equal to 100 
     percent'' and inserting ``a percentage (specified by the 
     State and not less than 100 percent and not more than 150 
     percent)''.
       (c) Clarification of State Option to Cover All Children 
     Under 19 Years of Age.--Section 1902(l)(1)(D) of such Act (42 
     U.S.C. 1396a(l)(1)(D)) is amended by inserting ``(or, at the 
     option of a State, after any earlier date)'' after ``children 
     born after September 30, 1983''.
       (d) State Option of Continuous Eligibility for 12 Months.--
     Section 1902(e) of such Act (42 U.S.C. 1396a(e)) is amended 
     by adding at the end the following new paragraph:
       ``(12) At the option of the State, the plan may provide 
     that an individual who is under an age specified by the State 
     (not to exceed 19 years of age) and who is determined to be 
     eligible for benefits under a State plan approved under this 
     title under subsection (a)(10)(A) shall remain eligible for 
     those benefits until the earlier of--
       ``(A) the end of a period (not to exceed 12 months) 
     following the determination; or
       ``(B) the time that the individual exceeds that age.''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to medical assistance for items and services 
     furnished on or after January 1, 1998.

     SEC. 3. EMPLOYER CONTRIBUTIONS TO PREMIUMS.

       (a) General Rule.--Any employer which elects to make 
     employer contributions on behalf of an individual who is an 
     employee of such employer, or who is a dependent of such 
     employee, for health insurance coverage shall not condition, 
     or vary, such contributions with respect to any such 
     individual by reason of such individual's status as an 
     individual eligible for medical assistance under a State plan 
     under title XIX of the Social Security Act (42 U.S.C. 1396 et 
     seq.).
       (b) Elimination of Contributions.--An employer shall not be 
     treated as failing to meet the requirements of subsection (a) 
     if the employer ceases to make employer contributions for 
     health insurance coverage for all its employees.
       (c) Enforcement.--The enforcement provisions applicable to 
     group health insurance coverage under the amendments made by 
     section 101(e)(2) of the Health Insurance Portability and 
     Accountability Act of 1996 (Public Law 104-191; 110 Stat. 
     1952) shall apply with respect to an employer that violates 
     the provisions of this section in the same manner as such 
     provisions apply to employers under such amendments.

     SEC. 4. GRANT PROGRAM TO PROMOTE OUTREACH EFFORTS.

       (a) Authorization of Appropriations.--There are authorized 
     to be appropriated, for each fiscal year beginning with 
     fiscal year 1998 to the Secretary of Health and Human 
     Services, $25,000,000 for grants to States, localities, and 
     nonprofit entities to promote outreach efforts to enroll 
     eligible children under the medicaid program under title XIX 
     of the Social Security Act (42 U.S.C. 1396 et seq.) and 
     related programs.
       (b) Use of Funds.--Funds under this section may be used to 
     reimburse States, localities, and nonprofit entities for 
     additional training and administrative costs associated with 
     outreach activities. Such activities include the following:
       (1) Use of a common application form for federal child 
     assistance programs.--Implementing use of a single 
     application form (established by the Secretary and based on 
     the model application forms developed under subsections (a) 
     and (b) of section 6506 of the Omnibus Budget Reconciliation 
     Act of 1989 (42 U.S.C. 701 note; 1396a note)) to determine 
     the eligibility of a child or the child's family (as 
     applicable) for assistance or benefits under the medicaid 
     program and under other Federal child assistance programs 
     (such as the temporary assistance for needy families program 
     under part A of title IV of the Social Security Act (42 
     U.S.C. 601 et seq.), the food stamp program, as defined in 
     section 3(h) of the Food Stamp Act of 1977 (7 U.S.C. 
     2012(h)), and the State program for foster care maintenance 
     payments and adoption assistance payments under part E of 
     title IV of the Social Security Act (42 U.S.C. 670 et seq.)).
       (2) Expanding outstationing of eligibility personnel.--
     Providing for the stationing of eligibility workers at sites, 
     such as hospitals and health clinics, at which children 
     receive health care or related services.
       (c) Application, Etc.--Funding shall be made available 
     under this section only upon the approval of an application 
     by a State, locality, or nonprofit entity for such funding 
     and only upon such terms and conditions as the Secretary 
     specifies.
       (d) Administration.--The Secretary may administer the grant 
     program under this section through the identifiable 
     administrative unit designated under section 509(a) of the 
     Social Security Act (42 U.S.C. 709(a)) to promote 
     coordination of medicaid and maternal and child health 
     activities and other child health related activities.

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