[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3335 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 3335

    To prevent a severe reduction in the Federal medical assistance 
 percentage determined for a State for fiscal year 2006 and to provide 
   for adjustment in computation of such percentage to disregard an 
              extraordinary employer pension contribution.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 19, 2005

 Mr. Dingell (for himself, Mr. Brown of Ohio, Mr. Waxman, Mr. Kildee, 
and Mr. McDermott) introduced the following bill; which was referred to 
                  the Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL


 
    To prevent a severe reduction in the Federal medical assistance 
 percentage determined for a State for fiscal year 2006 and to provide 
   for adjustment in computation of such percentage to disregard an 
              extraordinary employer pension contribution.

    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 ``Medicaid Formula Fairness Act of 
2005''.

SEC. 2. LIMITATION ON SEVERE REDUCTION IN THE MEDICAID FMAP FOR FISCAL 
              YEAR 2006.

    (a) Limitation on Reduction.--In no case shall the FMAP for a State 
for fiscal year 2006 be less than the greater of the following:
            (1) Half percentage point decrease.--The FMAP determined 
        for the State for fiscal year 2005, decreased by 0.5 percentage 
        points.
            (2) Computation without retroactive application of 
        rebenchmarked per capita income.--The FMAP that would have been 
        determined for the State for fiscal year 2006 if the per capita 
        incomes for 2001 and 2002 that was used to determine the FMAP 
        for the State for fiscal year 2005 were used.
    (b) Scope of Application.--The FMAP applicable to a State for 
fiscal year 2006 after the application of subsection (a) shall apply 
only for purposes of titles XIX and XXI of the Social Security Act 
(including for purposes of making disproportionate share hospital 
payments described in section 1923 of such Act (42 U.S.C. 1396r-4) and 
payments under such titles that are based on the enhanced FMAP 
described in section 2105(b) of such Act (42 U.S.C. 1397ee(b))) and 
shall not apply with respect to payments under title IV of such Act (42 
U.S.C. 601 et seq.).
    (c) Definitions.--In 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 (42 
        U.S.C. 1396 et seq.).

SEC. 3. REPEAL.

    Effective as of October 1, 2006, section 2 is repealed and shall 
not apply to any fiscal year after fiscal year 2006.

SEC. 4. ADJUSTMENT IN COMPUTATION OF MEDICAID FMAP TO DISREGARD AN 
              EXTRAORDINARY EMPLOYER PENSION CONTRIBUTION.

    (a) In General.--Only for purposes of computing the Federal medical 
assistance percentage under section 1905(b) of the Social Security Act 
(42 U.S.C. 1396d(b)) for a State for a fiscal year (beginning with 
fiscal year 2006), any significantly disproportionate employer pension 
contribution described in subsection (b) shall be disregarded in 
computing the per capita income of such State, but shall not be 
disregarded in computing the per capita income for the continental 
United States (and Alaska) and Hawaii.
    (b) Significantly Disproportionate Employer Pension Contribution.--
For purposes of subsection (a), a significantly disproportionate 
employer pension contribution described in this subsection with respect 
to a State for a fiscal year is an employer contribution towards 
pensions that is allocated to such State for a period if the aggregate 
amount so allocated exceeds 30 percent of the total increase in 
personal income in that State for the period involved.
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