[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 634 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                 S. 634

 To amend title XIX of the Social Security Act to provide a financial 
incentive for States to reduce expenditures under the medicaid program, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

               March 28 (legislative day, March 27), 1995

 Mr. D'Amato (for himself and Mr. Dole) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend title XIX of the Social Security Act to provide a financial 
incentive for States to reduce expenditures under the medicaid program, 
                        and for other purposes.

    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 Medicaid Savings Incentive Act 
of 1995''.

SEC. 2. MEDICAID SAVINGS INCENTIVE PAYMENTS.

    (a) Incentive Payments.--Section 1903(a) of the Social Security Act 
(42 U.S.C. 1396b(a)) is amended--
            (1) in paragraph (7), by striking the period and inserting 
        ``; plus''; and
            (2) by adding at the end the following new paragraph:
    ``(8) in the case of a State to which subsection (x) applies, the 
amount of the incentive payment determined under such subsection.''.
    (b) Incentive Payment.--Section 1903 of the Social Security Act (42 
U.S.C. 1396b) is amended by adding at the end the following new 
subsection:
    ``(x)(1) For purposes of subsection (a)(8), if a State achieves a 
rate of growth for a fiscal year which is less than the State baseline 
rate of growth for such fiscal year established under paragraph (3), 
the Secretary shall make an incentive payment to the State for the 
fiscal year in the amount determined under paragraph (2).
    ``(2) The amount of any incentive payment shall be equal to the 
amount that is 20 percent of the difference between the amount that the 
Federal Government would have paid to a State in a fiscal year for 
providing medical assistance in accordance with this title, if State 
expenditures for providing such assistance had increased by the State 
baseline rate of growth established under paragraph (3) for such fiscal 
year, and the amount that the Federal Government paid to such State in 
the fiscal year for providing medical assistance in accordance with 
this title using the actual State rate of growth for State expenditures 
for providing such assistance.
    ``(3) At the beginning of each fiscal year, the Secretary shall 
determine for that fiscal year a baseline rate of growth for medicaid 
expenditures for each State with a State plan approved under this title 
based on--
            ``(A) the historical rate of growth for such expenditures 
        in the State; and
            ``(B) such other factors as the Secretary deems 
        appropriate.''.
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