Extension and expansion of medicaid emergency psychiatric demonstration project

(a)

In general

Subsection (d) of section 2707 of Public Law 111–148 (42 U.S.C. 1396a note) is amended to read as follows:

(d)

Length of demonstration project

(1)

In general

Except as provided in paragraphs (2) and (3), the demonstration project established under this section shall be conducted for a period of 3 consecutive years.(2)

Temporary extension of participation eligibility for selected States

(A)

In general

Subject to paragraph (3), a State selected as an eligible State to participate in the demonstration project on or prior to March 13, 2012, shall, upon the request of the State, be permitted to continue to participate in the demonstration project through the date described in subparagraph (B) if—(i)the Secretary determines that the continued participation of the State in the demonstration project is not expected to increase spending under title XIX of the Social Security Act; and(ii)the Chief Actuary of the Centers for Medicare & Medicaid Services certifies that such extension for that State is projected to reduce (or is projected not to result in any increase in) net program spending under title XIX of the Social Security Act.(B)

Date described

The date described in this subparagraph is the earlier of—(i)the date on which Secretary submits the recommendations required under subsection (f)(3); or(ii)September 30, 2016.(3)

Extension and expansion of demonstration project

(A)

Additional extension

Taking into account the recommendations submitted to Congress pursuant to subsection (f)(3), the Secretary may, if the Secretary determines that extension and expansion of the demonstration project satisfies the criteria for the temporary extension under subparagraphs (A) and (B) of paragraph (2)—(i)extend the demonstration project through December 31, 2019; and(ii)permit any eligible State participating in the demonstration project as of the date such recommendations are submitted to continue to participate in the project.(B)

Option for expansion to additional States

Taking into account the recommendations submitted to Congress pursuant to subsection (f)(3), the Secretary may expand (including on a nationwide basis) the number of eligible States participating in the demonstration project during the extension period established under subparagraph (A) if, with respect to any new eligible State—(i)the Secretary determines that the participation of the State in the demonstration project is not expected to increase spending under title XIX of the Social Security Act; and(ii)the Chief Actuary of the Centers for Medicare & Medicaid Services certifies that the participation of the State in the demonstration project is projected to reduce (or is projected not to result in any increase in) net program spending under title XIX of the Social Security Act.(4)

Authority to ensure budget neutrality

The Secretary annually shall review each participating State’s demonstration project expenditures to ensure compliance with the requirements of paragraphs (2)(A), (2)(B), (3)(B)(i), and (3)(B)(ii) (as applicable). If the Secretary determines with respect to a State's participation in the demonstration project that the State's net program spending under title XIX of the Social Security Act has increased as a result of the State's participation in the project, the Secretary shall treat the demonstration project excess expenditures of the State as an overpayment under title XIX of the Social Security Act.

(b)

Funding

Subsection (e) of section 2707 of such Act (42 U.S.C. 1396a note) is amended—(1)in the subsection heading, by striking

Limitations on Federal

;(2)in paragraph (2)—(A)in the paragraph heading, by striking

5-year

; and(B)by striking through December 31, 2015 and inserting until expended;(3)by striking paragraph (3);(4)by redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively;(5)in paragraph (3) (as so redesignated), by striking and the availability of funds and inserting (other than States deemed to be eligible States through the application of subsection (c)(4)); and(6)in paragraph (4) (as so redesignated)—(A)in the first sentence—(i)by inserting (other than a State deemed to be an eligible State through the application of subsection (c)(4)) after eligible State; and(ii)by striking paragraph (4) and inserting paragraph (3); and(B)by inserting after the first sentence the following In addition to any payments made to an eligible State under the preceding sentence, the Secretary shall, during any period in effect under paragraph (2) or (3) of subsection (d), or during any period in which a law described in subsection (f)(4)(C) is in effect, pay each eligible State (including any State deemed to be an eligible State through the application of subsection (c)(4)), an amount each quarter equal to the Federal medical assistance percentage of expenditures in the quarter during such period for medical assistance described in subsection (a). Payments made to States under this paragraph shall be considered to have been made under, and are subject to, the requirements of section 1903 of the Social Security Act (42 U.S.C. 1396b)..(c)

Recommendations to congress

Subsection (f) of section 2707 of such Act (42 U.S.C. 1396a note) is amended by adding at the end the following:

(3)

Recommendation to congress regarding extension and expansion of project

Not later than September 30, 2016, the Secretary shall submit to Congress and make available to the public recommendations based on an evaluation of the demonstration project, including the use of appropriate quality measures, regarding—(A)whether the demonstration project should be continued after December 31, 2016; and(B)whether the demonstration project should be expanded (including on a nationwide basis).(4)

Recommendation to congress regarding permanent extension and nationwide expansion

(A)

In general

Not later than April 1, 2019, the Secretary shall submit to Congress and make available to the public recommendations based on an evaluation of the demonstration project, including the use of appropriate quality measures, regarding—(i)whether the demonstration project should be permanently continued after December 31, 2019, in 1 or more States; and(ii)whether the demonstration project should be expanded (including on a nationwide basis).(B)

Requirements

Any recommendation submitted under subparagraph (A) to permanently continue the project in a State, or to expand the project to 1 or more other States (including on a nationwide basis) shall include a certification from the Chief Actuary of the Centers for Medicare & Medicaid Services that permanently continuing the project in a particular State, or expanding the project to a particular State (or all States) is projected to reduce (or is projected not to result in any increase in) net program spending under title XIX of the Social Security Act. If the Secretary determines with respect to a State's participation in the demonstration project that net program spending under title XIX of such Act has increased as a result of the project, the Secretary shall treat the demonstration project excess expenditures of the State as an overpayment under title XIX of the Social Security Act.(C)

Congressional approval required

The Secretary shall not permanently continue the demonstration project in any State after December 31, 2019, or expand the demonstration project to any additional State after December 31, 2019, unless Congress enacts a law approving either or both such actions.(5)

Funding

Out of any funds in the Treasury not otherwise appropriated, there is appropriated to the Centers for Medicare & Medicaid Services Program Management Account to carry out this subsection, $100,000 for fiscal year 2015, to remain available until expended.

(d)

Conforming amendments

Section 2707 of such Act (42 U.S.C. 1396a note) is amended—(1)in subsection (c)—(A)in paragraph (1), by striking An eligible State and inserting Except as otherwise provided in paragraph (4), an eligible State;(B)in paragraph (3), by striking A State shall and inserting Except as otherwise provided in paragraph (4), a State shall; and(C)by adding at the end the following:

(4)

Nationwide availability

In the event that the Secretary makes a recommendation pursuant to subsection (f)(4) that the demonstration project be expanded on a national basis, any State that has submitted or submits an application pursuant to paragraph (2) shall be deemed to have been selected to be an eligible State to participate in the demonstration project.

; and

(2)in the heading for subsection (f), by striking

and report

and inserting

, report, and recommendations

.(e)

Effective date

The amendments made by this section shall take effect on the date of the enactment of this Act.