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<bill bill-stage="Introduced-in-House" dms-id="H07173A2C053343C1B1CF79FE3D00B14F" public-private="public" bill-type="olc"> 
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<dublinCore>
<dc:title>109 HR 3891 IH: States’ Right To Innovate in Health Care Act of 2005</dc:title>
<dc:publisher>U.S. House of Representatives</dc:publisher>
<dc:date>2005-09-22</dc:date>
<dc:format>text/xml</dc:format>
<dc:language>EN</dc:language>
<dc:rights>Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.</dc:rights>
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<form> 
<distribution-code display="yes">I</distribution-code> 
<congress>109th CONGRESS</congress>
<session>1st Session</session>
<legis-num>H. R. 3891</legis-num> 
<current-chamber>IN THE HOUSE OF REPRESENTATIVES</current-chamber> 
<action> 
<action-date date="20050922">September 22, 2005</action-date> 
<action-desc><sponsor name-id="T000266">Mr. Tierney</sponsor> (for himself, <cosponsor name-id="B001227">Mr. Brady of Pennsylvania</cosponsor>, <cosponsor name-id="C001037">Mr. Capuano</cosponsor>, <cosponsor name-id="C000714">Mr. Conyers</cosponsor>, <cosponsor name-id="D000096">Mr. Davis of Illinois</cosponsor>, <cosponsor name-id="D000191">Mr. DeFazio</cosponsor>, <cosponsor name-id="E000250">Mr. Evans</cosponsor>, <cosponsor name-id="F000043">Mr. Fattah</cosponsor>, <cosponsor name-id="F000116">Mr. Filner</cosponsor>, <cosponsor name-id="G000535">Mr. Gutierrez</cosponsor>, <cosponsor name-id="H000627">Mr. Hinchey</cosponsor>, <cosponsor name-id="J000032">Ms. Jackson-Lee of Texas</cosponsor>, <cosponsor name-id="K000113">Mr. Kennedy of Rhode Island</cosponsor>, <cosponsor name-id="K000172">Mr. Kildee</cosponsor>, <cosponsor name-id="L000090">Mr. Lantos</cosponsor>, <cosponsor name-id="L000551">Ms. Lee</cosponsor>, <cosponsor name-id="L000287">Mr. Lewis of Georgia</cosponsor>, <cosponsor name-id="L000562">Mr. Lynch</cosponsor>, <cosponsor name-id="M000087">Mrs. Maloney</cosponsor>, <cosponsor name-id="M000404">Mr. McDermott</cosponsor>, <cosponsor name-id="M000312">Mr. McGovern</cosponsor>, <cosponsor name-id="M000627">Mr. Meehan</cosponsor>, <cosponsor name-id="N000002">Mr. Nadler</cosponsor>, <cosponsor name-id="O000085">Mr. Olver</cosponsor>, <cosponsor name-id="O000159">Mr. Owens</cosponsor>, <cosponsor name-id="S000033">Mr. Sanders</cosponsor>, <cosponsor name-id="S001153">Ms. Solis</cosponsor>, <cosponsor name-id="S000810">Mr. Stark</cosponsor>, <cosponsor name-id="T000193">Mr. Thompson of Mississippi</cosponsor>, <cosponsor name-id="U000039">Mr. Udall of New Mexico</cosponsor>, <cosponsor name-id="W000792">Mr. Weiner</cosponsor>, <cosponsor name-id="D000210">Mr. Delahunt</cosponsor>, <cosponsor name-id="B001230">Ms. Baldwin</cosponsor>, <cosponsor name-id="P000149">Mr. Payne</cosponsor>, <cosponsor name-id="N000147">Ms. Norton</cosponsor>, <cosponsor name-id="M000725">Mr. George Miller of California</cosponsor>, <cosponsor name-id="H000324">Mr. Hastings of Florida</cosponsor>, <cosponsor name-id="K000336">Mr. Kucinich</cosponsor>, <cosponsor name-id="C000380">Mrs. Christensen</cosponsor>, <cosponsor name-id="J000284">Mrs. Jones of Ohio</cosponsor>, <cosponsor name-id="M000714">Ms. Millender-McDonald</cosponsor>, and <cosponsor name-id="C000191">Ms. Carson</cosponsor>) introduced the following bill; which was referred to the <committee-name committee-id="HIF00">Committee on Energy and Commerce</committee-name></action-desc>
</action> 
<legis-type>A BILL</legis-type> 
<official-title>To amend the Social Security Act to provide grants and flexibility through demonstration projects for States to provide universal, comprehensive, cost-effective systems of health care coverage, with simplified administration.</official-title> 
</form> 
<legis-body id="H2B15FC03262A45B5BC2783ED1764451D" style="OLC"> 
<section section-type="section-one" id="H6154BAE4ADFB48C7A41538B0E6170032" display-inline="no-display-inline"><enum>1.</enum><header>Short title; table of contents</header> 
<subsection id="H3F6B245BFC944DCA8100CBFF58D1D949"><enum>(a)</enum><header>Short title</header><text>This Act may be cited as the <quote><short-title>States’ Right To Innovate in Health Care Act of 2005</short-title></quote>.</text></subsection> 
<subsection id="H51BBFA3636FE452387CBFA33E3BCF090"><enum>(b)</enum><header>Table of contents</header><text>The table of contents of this Act is as follows:</text> 
<toc container-level="legis-body-container" quoted-block="yes-quoted-block" lowest-level="section" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded"> 
<toc-entry idref="H6154BAE4ADFB48C7A41538B0E6170032" level="section">Sec. 1. Short title; table of contents</toc-entry> 
<toc-entry idref="HABE17343A7FF4D409061AD00EF6039ED" level="section">Sec. 2. Findings and purposes</toc-entry> 
<toc-entry idref="H361B9547165C4BD88E058329F1260510" level="section">Sec. 3. Amendment to <act-name parsable-cite="SSA">Social Security Act</act-name></toc-entry> 
<toc-quoted-entry style="OLC"> 
<toc-entry idref="HE5B480B6EA1542CD96001D5177A8A277" level="title">Title XXII—State comprehensive health care and cost containment demonstration projects</toc-entry> 
<toc-entry idref="HB5FAD91DA0B3481697F45C742CA9CD1B" level="section">Sec. 2201. Planning grants</toc-entry> 
<toc-entry idref="HA871528D5E36409D93BAB007E0A9D53E" level="section">Sec. 2202. Demonstration grants</toc-entry> 
<toc-entry idref="H19C33B227DD64B6BBE65439B24F986BB" level="section">Sec. 2203. State plan requirements</toc-entry> 
<toc-entry idref="HE72485044A1B44558D3297A307740165" level="section">Sec. 2204. Interstate arrangements</toc-entry> 
<toc-entry idref="H0F91F43174F246B99E61B5F66D6BC8D9" level="section">Sec. 2205. Definitions</toc-entry> </toc-quoted-entry></toc> </subsection></section> 
<section id="HABE17343A7FF4D409061AD00EF6039ED"><enum>2.</enum><header>Findings and purposes</header> 
<subsection id="HDD8A4492185E43FF887741CE16B648A"><enum>(a)</enum><header>Findings</header><text>Congress finds the following:</text> 
<paragraph id="HE1A18D502FDB49B386456645953696B5"><enum>(1)</enum><text display-inline="yes-display-inline">In 2002, in response to a request from the Secretary of Health and Human Services (SHHS), the Institute of Medicine (IOM) established a Committee, officially known as the Committee on Rapid Advance Demonstration Projects: Health Care Finance and Delivery Systems, with the goal of formulating models for broader health care reform. The committee recommended a 10-year commitment to State demonstration projects as a means to encourage States to develop their own systems of universal care and facilitate innovation. </text></paragraph> 
<paragraph id="H44F92C7D33EA4BD59B37EE14B70189A8"><enum>(2)</enum><text>In 2003, annual health care expenditures in the United States totaled $1.7 trillion, or $5,670 per person.</text></paragraph> 
<paragraph id="H6ECE63E7B03349C887E715C96E037FA5"><enum>(3)</enum><text>In 2003, health care expenditures represented 15.3 percent of the gross domestic product (GDP) in the United States and grew at the rate of 7.7 percent while the gross domestic product grew only at the rate of 4.9 percent.</text></paragraph> 
<paragraph id="HFF94E8A931844CDC90C73A4F508DA8B"><enum>(4)</enum><text>Center for Medicare and Medicaid Studies (CMS) actuaries report that the United States as a whole spent an estimated $1.5 trillion on health care in 2003, or 14.9 percent of GDP of $10.9 trillion. They project by 2013 the United States will spend about $3.36 trillion on health care, or 18.4 percent of a GDP of $18.24 trillion.</text></paragraph> 
<paragraph id="HC1DDBC93378540FD8543C9BEFE974300"><enum>(5)</enum><text>Because many individuals do not have health insurance coverage, they may incur health care costs which they do not fully reimburse, resulting in cost-shifting to others.</text></paragraph> 
<paragraph id="H53AF6ABB337C429E952FBF24EBB538FA"><enum>(6)</enum><text>According to the Kaiser Family Foundation and Health Research Educational Trust, the total premium for a typical employment-based health insurance policy for a family in 2003 was $8,800, split between employer and employee. Health Administration costs in the United States total over $1,000 per capita, adding to the high cost of insurance. In 2003 health insurance enrollment declined by nearly a percentage point for a third year in a row.</text></paragraph></subsection> 
<subsection id="H289A3FC3280C4BBB8672A700F9A3DE7"><enum>(b)</enum><header>Purpose</header><text>It is the purpose of this Act to encourage States—</text> 
<paragraph id="H759AC2697D3C48B08CF049AA169F9536"><enum>(1)</enum><text>to develop plans for universal, comprehensive, cost-effective systems of health care with simplified administration to individuals residing in such States; and</text></paragraph> 
<paragraph id="HE5F57E158604498DB4D19BC289ACB5DC"><enum>(2)</enum><text>to implement such plans by offering transitional grants and by removing Federal statutory and administrative barriers that may inhibit or discourage efforts by States to provide such health care while maintaining Federal payments for health care under Federal health care programs.</text></paragraph></subsection></section> 
<section id="H361B9547165C4BD88E058329F1260510"><enum>3.</enum><header>Amendment to <act-name parsable-cite="SSA">Social Security Act</act-name></header><text display-inline="no-display-inline">The <act-name parsable-cite="SSA">Social Security Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/301">42 U.S.C. 301 et seq.</external-xref>) is amended by adding at the end the following new title:</text> 
<quoted-block act-name="Social Security Act" id="H0B32D779DFD64FC19F18D0A8BBC625CA"> 
<title id="HE5B480B6EA1542CD96001D5177A8A277"><enum>XXII</enum><header>State comprehensive health care and cost containment demonstration projects</header> 
<section id="HB5FAD91DA0B3481697F45C742CA9CD1B"><enum>2201.</enum><header>Planning grants</header> 
<subsection id="H3D89FE8ADF704151A7CE2435222846FD"><enum>(a)</enum><header>Application</header><text>A State may apply to the Secretary for a State planning grant under this section to develop a State plan to offer universal comprehensive health care, with simplified administration, and to improve the cost-effectiveness of the health care delivery system.</text></subsection> 
<subsection id="HB135ADBED30147AF9D429F2DC55DBAEB"><enum>(b)</enum><header>Contents</header><text>The Secretary may not approve such a State planning grant for a State unless the application for the grant includes or provides for the following:</text> 
<paragraph id="HDB3504C9AB5643F0B4D265483F65C250"><enum>(1)</enum><header>Budget</header><text>A budget and a budget justification.</text></paragraph> 
<paragraph id="H2E4D0DC66142476594DEA105A300A523"><enum>(2)</enum><header>Planning process</header><text>A description of how under the grant the State shall—</text> 
<subparagraph id="HE8BAFCB76DDD4ABC829F2C3C57AD232F"><enum>(A)</enum><text>identify options to provide a universal, comprehensive, and cost-effective system of health care, with simplified administration, that is affordable and accessible to all eligible beneficiaries in the State; and</text></subparagraph> 
<subparagraph id="H43D654979A7D45DD84CDAE02D37C4B4"><enum>(B)</enum><text>conduct an analysis that compares projected overall health expenditures over a 7-year period under the proposed system with the projected overall health expenditures that would otherwise occur during such period.</text></subparagraph></paragraph> 
<paragraph id="HECAE57C7411E41A382E911A71C99C62C"><enum>(3)</enum><header>Opportunity for public participation</header><text>Assurances that the State will include a process for public contribution and participation in the planning process.</text></paragraph></subsection> 
<subsection id="H52B9D97D80E546E7A9FCC80512D67284"><enum>(c)</enum><header>Number of States; period of grant</header><text>The Secretary may not award State planning grants under this section to more than 10 States. A State planning grant under this section shall be effective for a period of up to 30 months. In awarding State planning grants under this section the Secretary shall give preference to States from a variety of geographic areas in the United States.</text></subsection> 
<subsection id="HD4EC8BBA48834D21AC8200D19DC400CD"><enum>(d)</enum><header>Amount</header><text>The amount of a State planning grant under this section to a State may not exceed $3,750,000.</text></subsection> 
<subsection id="HC70AB9CA5C024B308FE39FBEFEAB9C"><enum>(e)</enum><header>Technical assistance</header><text>The Secretary shall provide States with technical assistance in applying for and implementing State planning grants under this section. At the request of the Secretary, other Departments and Offices of the Federal Government shall provide States with such technical assistance.</text></subsection></section> 
<section id="HA871528D5E36409D93BAB007E0A9D53E"><enum>2202.</enum><header>Demonstration grants</header> 
<subsection id="HE629666184C14D70BBD76FBC852E42EB"><enum>(a)</enum><header>Application</header><text>A State that has developed a State plan may apply to the Secretary for approval of a demonstration grant under this section to achieve a cost-effective delivery system of universal, comprehensive health care with simplified administration. The Secretary shall notify the chief executive officer of all States of the availability of demonstration grants under this section.</text></subsection> 
<subsection id="H8263A091E97A4587AB61ED08F8519E8"><enum>(b)</enum><header>Approval</header><text>The Secretary shall approve the applications of not more than 5 States under this section. In approving grants under this section the Secretary shall give preference to States from a variety of geographic areas in the United States. If the Secretary determines that a State no longer meets the conditions for approval of the grant, the Secretary shall notify the State of such determination and provide the State with an opportunity to correct deficiencies in a timely manner. If the Secretary further determines that a State has not corrected such deficiencies in a timely manner, the Secretary shall terminate the grant (including waivers authorized under the grant).</text></subsection> 
<subsection id="H3FAA13D88FA340058D885F44C7D1679D"><enum>(c)</enum><header>Period</header><text>A demonstration grant approved under this section shall be effective for 7 years from the date of final approval of the demonstration grant application under subsection (b).</text></subsection> 
<subsection id="H1EBFB006D4B448CF9D94F8DB76F54D1F"><enum>(d)</enum><header>State plan required</header><text>The Secretary may not approve a demonstration grant under this section unless the State has a State plan to carry out the grant consistent with the requirements of section 2203.</text></subsection> 
<subsection id="H870733476C6C446C9DE89E7BAB3BED6"><enum>(e)</enum><header>Funding</header> 
<paragraph id="H70DBA99E9E044068B83135E64F75A1B4"><enum>(1)</enum><header>Transitional grant amount</header><text>The amount awarded under this section to a State with a demonstration grant approved under this section may not exceed an aggregate amount of $10,000,000 plus $3 multiplied by the number of eligible State residents of the State, to assist the State in the transition of the health care delivery and financing infrastructure. Such amount shall be made available to a State during the period of transition, as provided in the State plan. The number of eligible State residents of a State shall be determined based on the best available Census Bureau data as of the July 1 before the date the grant under this section is approved.</text></paragraph> 
<paragraph id="H249507E3FA2D4508A9C8A26E0859C5C0"><enum>(2)</enum><header>Maintenance of Federal funds under waivers</header><text>Pursuant to the waivers under subsection (f), the Federal Government shall pay to a State amounts for health care under Federal health care programs that would otherwise have been payable by the Federal Government but for the State’s universal, comprehensive health care system under this section.</text></paragraph> 
<paragraph id="H3B7C59F34100491B002E68D1607F09C9"><enum>(3)</enum><header>General 3 percentage points increase in FMAP for calendar quarters occurring during the period of the demonstration grant</header> 
<subparagraph id="H6EDACBEE50684993AA002EBE9CC9F727"><enum>(A)</enum><header>In general</header><text>Notwithstanding any other provision of law, for each State for which a demonstration grant is approved under this section, the FMAP of the State shall be increased by 3 percentage points for each calendar quarter occurring during the period referred to in subsection (c).</text></subparagraph> 
<subparagraph id="H6EA047A3BC274A52A44CF3B5D7975E00"><enum>(B)</enum><header>FMAP</header><text>In this paragraph, the term <term>FMAP</term> means the Federal medical assistance percentage, as defined in section 1905(b) of the <act-name parsable-cite="SSA">Social Security Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/1396d">42 U.S.C. 1396d(b)</external-xref>).</text></subparagraph></paragraph></subsection> 
<subsection id="H22A5735FBA194FC497FFF100C2AE1231"><enum>(f)</enum><header>Waiver of ERISA preemption and waivers to pool funds</header><text>As part of a demonstration grant under this section and subject to the benefit maintenance requirements applicable under section 2203(b), a State may request (and the Secretary may grant) the following waivers of requirements and provisions to the extent necessary to carry out the State plan under section 2203:</text> 
<paragraph id="H67A6EF7C87454C1DA1AB90B80018B687"><enum>(1)</enum><header>ERISA</header><text>Waiving application of section 514 of the <act-name parsable-cite="ERISA">Employee Retirement Income Security Act of 1974</act-name>.</text></paragraph> 
<paragraph id="HBECD21C63F644AF58724907097816D4C"><enum>(2)</enum><header>Medicare</header><text>Waiving provisions necessary to permit the State—</text> 
<subparagraph id="H8B757E7185694732BCAFA8ED475B8B17"><enum>(A)</enum><text>to use funds otherwise paid under title XVIII for beneficiaries residing in the State; and</text></subparagraph> 
<subparagraph id="HD55749F89D68401FAA3C8C7E2BD9BAB4"><enum>(B)</enum><text>to permit the State to enter into an arrangement with the Secretary under which eligible State residents who are not otherwise enrolled for benefits under parts A and B of such title are enrolled for such benefits under such title and the State provides for such actuarially appropriate reimbursement to the Secretary with respect to coverage of such benefits for such residents as is necessary to assure that the Trust Funds under such title are not adversely affected by virtue of such waiver, such reimbursement subject to—</text> 
<clause id="H260255B2828445FFB2E8F11308257760"><enum>(i)</enum><text>an independent audit, to be reviewed by the Comptroller General of the United States, assuring that such reimbursement does not adversely affect in any way the Trust Funds for medicare eligible beneficiaries, and</text></clause> 
<clause id="H818554C2484B4EA39DDE03ECA56BF6FA"><enum>(ii)</enum><text>in the case that the audit determines that additional reimbursement to the Secretary is required, such additional reimbursement, with appropriate adjustments for interest attributable to the late reimbursement.</text></clause></subparagraph></paragraph> 
<paragraph id="H08B60EED028D4CC6ACD6E6E6EBA53C24"><enum>(3)</enum><header>Medicaid</header><text>Waiving provisions necessary to permit the State to use funds otherwise paid to the State under title XIX.</text></paragraph> 
<paragraph id="H86EFFFB971E64945AFC659EB08DA978D"><enum>(4)</enum><header>SCHIP</header><text>Waiving provisions necessary to permit the State to use funds otherwise paid to the State under title XXI.</text></paragraph> 
<paragraph id="H3D2CB88419E9441080629B9E16A322BB"><enum>(5)</enum><header>FEHBP</header><text>Waiving provisions necessary to permit the State to use funds otherwise paid under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/89">chapter 89</external-xref> of title 5, United States Code, or allowing the Office of Personnel Management to purchase health care coverage for Federal employees and retirees in the State under the State plan.</text></paragraph> 
<paragraph id="HA785BA43883A454CAE3F10DF9DCF0007"><enum>(6)</enum><header>Use of other funds</header><text>Waiving provisions necessary to permit the State to use funds otherwise provided under other Federal programs for the provision of health care coverage or services, identified by the State.</text></paragraph> 
<paragraph id="H02134381300E41B28BCEA388E9B01F31"><enum>(7)</enum><header>Other laws</header><text>Waiving of other provisions of Federal law identified by the State under section 2203(e)(3) only if the Secretary determines such a waiver to be appropriate after consultation with the head of the Federal agency or department concerned.</text></paragraph><continuation-text continuation-text-level="subsection">The Secretary may grant a waiver under this subsection only if the State provides the Secretary with satisfactory assurances that necessary safeguards have been taken to protect the health and welfare of individuals provided services under the waiver and that financial accountability is maintained for any funds expended under the waiver. The Secretary may grant a waiver under paragraph (1) only with the concurrence of the Secretary of Labor.</continuation-text></subsection> 
<subsection id="HA07853165EFF41C59992525CF76BB787"><enum>(g)</enum><header>Reenrollment of eligible State residents who move from a participating State</header><text>In the case of an eligible State resident who is covered under a State plan under section 2203, who (but for such coverage) is eligible to be enrolled in a program described in subsection (f) (including the medicare and medicaid programs), and who is not enrolled in such a program because of such coverage, if the resident leaves the State to reside in a State that does not have such a State plan in effect, the resident shall be permitted, notwithstanding any other provision of law, to enroll immediately in such a program if the resident is still otherwise eligible to be so enrolled. In the case of such enrollment in the medicare program, the resident shall be treated for purposes of section 1882(s)(2) (relating to availability of medigap policies without underwriting) as if the resident had turned 65 years of age on the date the resident enrolls in the medicare program.</text></subsection> 
<subsection id="HE48CCACC5E2E4E21A56D093FD87C7100"><enum>(h)</enum><header>Duties of the Secretary</header> 
<paragraph id="HC58C39869A054F06BFBD0309F0A9E59E"><enum>(1)</enum><header>Guidance and information</header><text>The Secretary shall—</text> 
<subparagraph id="H16F73DEDBD2F41958E0292003C459FF8"><enum>(A)</enum><text>provide guidance to State health care authorities regarding applications for grants under this title and exchange information with, and otherwise assist, such authorities upon the request of the authorities;</text></subparagraph> 
<subparagraph id="HD61F78F793484A74B72FF5C72785FD31"><enum>(B)</enum><text>set application procedures;</text></subparagraph> 
<subparagraph id="H4372751A5ADD45D0BF81C9EA18FA4B4"><enum>(C)</enum><text>review and approve applications for demonstration grants under this section, including providing for appropriate waivers described in subsection (f);</text></subparagraph> 
<subparagraph id="HBE38CE9F0F48475DBBDBCCD2FE826310"><enum>(D)</enum><text>provide appropriate levels of funding for such approved applications consistent with such section;</text></subparagraph> 
<subparagraph id="H60AD115E19854D75B4A8F91C48ACFCFD"><enum>(E)</enum><text>conduct such evaluation, monitoring, compliance, and other review functions as may be appropriate;</text></subparagraph> 
<subparagraph id="HA302736501CE4937BEC447F4039D5280"><enum>(F)</enum><text>develop guidelines, standards, and formats for States to follow in evaluating, reporting, and collecting data in order to enable the Commission to monitor State plan administration and compliance, and to evaluate and compare the effectiveness of State plans; and</text></subparagraph> 
<subparagraph id="HC47C40F1C4D24168B8625474E5EBB6D6"><enum>(G)</enum><text>implement any other requirements or activities necessary and appropriate under this title.</text></subparagraph></paragraph> 
<paragraph id="H0B60A6D62B92465293275BC923AC25F2"><enum>(2)</enum><header>Annual report</header><text>The Secretary shall submit to the President and the Congress an annual report. Such report shall be submitted not later than March 30 of each year and shall include information concerning States that receive grants under this title and the effectiveness of any health care programs assisted by such grants during the previous year.</text></paragraph> 
<paragraph id="HC9406E4D73FE4D9D93B59485D5B8FD20"><enum>(3)</enum><header>Approval process</header><text>The provisions of section 2106(c) shall apply to State plans and the Secretary under this title in the same manner as they apply to State plans and the Secretary under such section.</text></paragraph></subsection></section> 
<section id="H19C33B227DD64B6BBE65439B24F986BB"><enum>2203.</enum><header>State plan requirements</header> 
<subsection id="H4CC7191A498C482AB97527B9090071DF"><enum>(a)</enum><header>Coverage</header> 
<paragraph id="HFCF77095F53F4705A9DC9754FDA2A88D"><enum>(1)</enum><header>In general</header><text>A State plan shall provide a process and a timeline for achieving coverage of all eligible State residents statewide, without regard to employment status, income, health status or preexisting condition, or location of residency within the State.</text></paragraph> 
<paragraph id="HEC1680524666406C9D4988E71E5375A1"><enum>(2)</enum><header>Outreach mechanisms</header><text>A State plan shall describe the outreach mechanisms to be used to assure coverage of all eligible individuals, including measures to assure coverage of individuals in hard-to-reach populations and to assure benefits are provided to eligible individuals located in underserved areas.</text></paragraph></subsection> 
<subsection id="H774BA0F57DA742DFB9B410E687D403CF"><enum>(b)</enum><header>Benefits</header> 
<paragraph id="HCCDD4AEDC75B4FA0BB00E5F79309782D"><enum>(1)</enum><header>Basic benefits</header><text>A State plan shall provide for health benefits that—</text> 
<subparagraph id="HD6569D3C43524C5690574737FF83FE37"><enum>(A)</enum><text>are at least actuarially equivalent to the standard Blue Cross/Blue Shield preferred provider option service benefit plan, described in and offered under <external-xref legal-doc="usc" parsable-cite="usc/5/8903">section 8903(1)</external-xref> of title 5, United States Code; and</text></subparagraph> 
<subparagraph id="HF7CB63248EB24CF58C000307001687A2"><enum>(B)</enum><text>include benefits for at least the following items and services:</text> 
<clause id="HA7726ABCE5B54DFEA4772EEE9F7B1559"><enum>(i)</enum><text>Inpatient and outpatient hospital services, including emergency services available 24 hours a day.</text></clause> 
<clause id="HFDBE87F073D9478BBA235829E7531CC2"><enum>(ii)</enum><text>Long term, acute, and chronic care services, including skilled nursing facility services, intermediate care facility services home health services, home and community-based long-term care services, hospice care, and services in intermediate care facilities for individuals diagnosed with mental retardation.</text></clause> 
<clause id="H8278B276E6EA435B93864984007364C4"><enum>(iii)</enum><text>Professional services of health care practitioners authorized to provide health care services under State law.</text></clause> 
<clause id="H032839544F2F415FA14255DC167738B8"><enum>(iv)</enum><text>Community-based primary health care services, including rural health clinic services and Federally-qualified health center services.</text></clause> 
<clause id="H1F3D56AC409F42B59023E0D29602109E"><enum>(v)</enum><text>Laboratory, x-ray services, and diagnostic tests.</text></clause> 
<clause id="H7ABBCDA2F1F9415F808B84C0AD732F8B"><enum>(vi)</enum><text>Preventive care, including prenatal, well-baby, and well-child care, appropriate immunizations, pap smears, screening mammography, colorectal cancer screening, physical examinations, and family planning.</text></clause> 
<clause id="H2F836979833B4E4B8D4162840829D556"><enum>(vii)</enum><text>Prescription drugs and biologicals, including insulin and medical foods.</text></clause> 
<clause id="H65ABC36BA55941588E00798623EF23D4"><enum>(viii)</enum><text>Mental health services.</text></clause> 
<clause id="HB377DD4DF1C1475AB2FD132C63BF3532"><enum>(ix)</enum><text>Substance abuse treatment services.</text></clause> 
<clause id="H7C7CE0BC081F40C395C5C6955ED3AF51"><enum>(x)</enum><text>Vision services, including routine eye examinations, eyeglasses, and contact lenses.</text></clause> 
<clause id="HF26E2043EF8D481B8FFC416FD922D7BE"><enum>(xi)</enum><text>Hearing services, including hearing aids.</text></clause> 
<clause id="H183D2E4FEEDD4C9488EA029450005D4D"><enum>(xii)</enum><text>Dental services, including routine check ups.</text></clause> 
<clause id="HB6E00DF569B147239F5D5580CFE3FBD2"><enum>(xiii)</enum><text>Durable medical equipment, including home dialysis supplies and equipment.</text></clause> 
<clause id="HF7007B3F095A407A8B000777556EE29"><enum>(xiv)</enum><text>Emergency ambulance services.</text></clause> 
<clause id="HF30B3495ADC24302BCACB980D1B16247"><enum>(xv)</enum><text>Prosthetics.</text></clause> 
<clause id="H5EF7EE6564ED4B898BCDE81B85A99120"><enum>(xvi)</enum><text>Outpatient therapy, including physical therapy, occupational therapy, and speech language pathology services and related services.</text></clause></subparagraph></paragraph> 
<paragraph id="H92A3760E5BDF41AFA962F3CB12A147CE"><enum>(2)</enum><header>Assurance that benefits are not reduced for individuals covered under Federal programs</header><text>Insofar as the State under the plan incorporates funding provided by Federal programs described in section 2202(f), the State plan may not provide for a reduction in benefits (including coverage, access, availability, duration, and beneficiary rights, and, if applicable, vaccine benefits under section 1928) otherwise provided for under such programs or an increase in cost-sharing and premiums otherwise provided for under such programs.</text></paragraph> 
<paragraph id="H95B3EEF65614490A8E0094B85929F1FF"><enum>(3)</enum><header>Continuation of benefits for certain aliens</header><text>Nothing in this title shall be construed as affecting the access of aliens described in section 2204(1)(D) to health care services provided under law for such aliens as of the date of the enactment of this title.</text></paragraph></subsection> 
<subsection id="H509F9B3DA4E246CCA132DA08C254C2A5"><enum>(c)</enum><header>Quality assurance</header> 
<paragraph id="H5491DCE56A3847399676858CA978A811"><enum>(1)</enum><header>In general</header><text>A State plan shall provide, and describe, mechanisms to be used to assure, monitor, and maintain the quality of items and services furnished under the plan.</text></paragraph> 
<paragraph id="H1CF326A767B0434B84804CD3CE00F7F3"><enum>(2)</enum><header>Health outcomes</header><text>A State plan shall describe the plan’s projected effect on health outcomes in the State, including estimates of health benefits, decreased morbidity and mortality, and improved productivity resulting from reduction in the number of individuals without health benefits.</text></paragraph></subsection> 
<subsection id="H5A59572EB9C047288C702B455C662D6E"><enum>(d)</enum><header>Programs for medical education</header><text>A State plan shall describe health professions training and graduate medical education activities applicable under the plan, and shall provide, under the State plan, for payment from Federal, State, and local governments for such training and education activities in the amounts that would otherwise be payable by such governments but for the State’s universal, comprehensive health care system under the State plan.</text></subsection> 
<subsection id="H405D561EC2A843F283DDFA16DBB052EC"><enum>(e)</enum><header>Financing</header> 
<paragraph id="HCFB6B13D1CD24C17AFBED383825740A4"><enum>(1)</enum><header>Budget</header><text>A State plan shall incorporate a budget which contains—</text> 
<subparagraph id="H5BBBF8A249A740E4AFAF0096441E9F3E"><enum>(A)</enum><text>detailed projections of health care expenditures presently and under the proposed system, including an identification and calculation of the amount of funding to be provided by the Federal, State, and local governments under the plan and an assurance that the amount of expenditures made by the State and local governments will not be reduced as a result of the implementation of the plan; and</text></subparagraph> 
<subparagraph id="HCA19530088D1436AAF6041E7B121E577"><enum>(B)</enum><text>a description (and an estimate of costs) of transitional activities to be undertaken in implementing the proposed system.</text></subparagraph></paragraph> 
<paragraph id="H6EB7CEAE684E4BFE0054224856587644"><enum>(2)</enum><header>Cost containment</header><text>A State plan shall describe the means to be used to contain costs under the plan, including when and how the plan will increase efficiencies.</text></paragraph> 
<paragraph id="H0926A999AEEB4812A503A6195644C5AA"><enum>(3)</enum><header>Federal expenditure limit</header><text>A State plan shall contain assurances that aggregate Federal expenditures on health care (including Federal expenditures under titles 5, 10, and 38 of the United States Code, and under this Act) under the plan will not exceed aggregate Federal expenditures that would have been incurred in the absence of such plan.</text></paragraph></subsection> 
<subsection id="HF6A01FBCFA7446219B0564571400C8A5"><enum>(f)</enum><header>Implementation</header> 
<paragraph id="HCFEE36F79E8B4FE487D558D8685664CA"><enum>(1)</enum><header>In general</header><text>A State plan shall describe the method (including a timetable and period of transition) for implementing the plan.</text></paragraph> 
<paragraph id="HC81CEA6BA7554CECB9251EBE2E931BCB"><enum>(2)</enum><header>Coordination</header><text>A State plan shall identify all Federal, State, and local programs that provide health care services in the State and describe how such programs would be incorporated in, or coordinated with, the health coverage system under the plan.</text></paragraph> 
<paragraph id="H5884A74962B945E78B87D879E800915C"><enum>(3)</enum><header>Federal waivers required</header><text>A State plan shall identify any waivers of Federal law required to implement the plan, including the use of any pooled Federal funds and other waivers described in section 2202(f).</text></paragraph> 
<paragraph id="H25D48C5FC42845E382FC51E2D09715CC"><enum>(4)</enum><header>Approval of State legislature</header><text>A State plan shall provide that State approvals and commitments (including approval of the State legislature) necessary for the implementation of the plan will be obtained by not later than 1 year after the date of the Secretary’s approval of the plan. Any approval of a grant is conditioned upon the timely completion of such approvals and commitments.</text></paragraph></subsection> 
<subsection id="H0164A4F3533C4F84A2E82BADD97F0628"><enum>(g)</enum><header>Evaluation</header><text>A State plan shall provide for a process for its evaluation, and shall comply with any evaluation reporting or data collection requirements imposed by the Secretary.</text></subsection> 
<subsection id="HBDC9C955817F4FD8809622F6E09BC2EA"><enum>(h)</enum><header>Construction</header><text>Nothing in this title shall be construed as preempting State laws that provide greater protections or benefits than the protections or benefits required under this title.</text></subsection></section> 
<section id="HE72485044A1B44558D3297A307740165"><enum>2204.</enum><header>Interstate arrangements</header> 
<subsection id="HF2D77459F53B47FAAEC60523C54B6FD0"><enum>(a)</enum><header>In general</header><text>One or more contiguous States in a geographic region may file a joint application for planning and demonstration grants under this title.</text></subsection> 
<subsection id="H6021A7D5A5B8486EAB2510FAAE49A763"><enum>(b)</enum><header>Congressional approval</header><text>Congress hereby authorizes and approves States entering into Interstate Compacts in order to conduct joint health care programs under such a grant.</text></subsection> 
<subsection id="HD53143BC44EF4222BD9BFF9E3B01EC91"><enum>(c)</enum><header>References to State</header><text>In the case of a joint application described in subsection (a), any reference in this title to a State is deemed to refer to all of the States, and the approval of a grant with respect to such a joint application shall be counted as 1 State for purposes of applying sections 2201(c) and 2202(b).</text></subsection></section> 
<section id="H0F91F43174F246B99E61B5F66D6BC8D9"><enum>2205.</enum><header>Definitions</header><text display-inline="no-display-inline">As used in this title:</text> 
<paragraph id="HB9254FE8D93145D79E2D333E52E46030"><enum>(1)</enum><header>Eligible State resident</header><text>The term <term>eligible State resident</term> means any resident of the United States who is a citizen or national of the United States, or lawful resident alien, and who resides in any particular State. Such term may include, at the option of a State, the following:</text> 
<subparagraph id="H1FDCBFDDED124FFC94E02165EEB2FFF"><enum>(A)</enum><text>State employees and dependents of such employees.</text></subparagraph> 
<subparagraph id="H0CC48242435F49DEA8A359B6ABAE5716"><enum>(B)</enum><text>Employees, and dependents of such employees, working in a work site of a business located in the State.</text></subparagraph> 
<subparagraph id="HBD15D02A41E447AFB69374CC8089349F"><enum>(C)</enum><text>One or more classes of nonimmigrants (as defined in section 101(a)(15) of the <act-name parsable-cite="INA">Immigration and Nationality Act</act-name>) specified in the State plan.</text></subparagraph> 
<subparagraph id="H48DE39B9D0904147A9940539D785DA39"><enum>(D)</enum><text>Aliens unlawfully present in the United States.</text></subparagraph></paragraph> 
<paragraph id="H39458FD50E264DBE94AD07C3DF9E6CA"><enum>(2)</enum><header>Lawful resident alien</header><text>The term <term>lawful resident alien</term> means an alien lawfully admitted for permanent residence and any other alien lawfully residing permanently in the United States under color of law, including an alien granted asylum or with lawful temporary resident status under section 210, 210A, or 245A of the <act-name parsable-cite="INA">Immigration and Nationality Act</act-name>.</text></paragraph> 
<paragraph id="HC2C9306F661549FA9DC3632474986FEA"><enum>(3)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of Health and Human Services.</text></paragraph> 
<paragraph id="H77CCB101FA984CE2AA6476DCFC5ED51C"><enum>(4)</enum><header>State</header><text>Subject to section 2204(c), the term <term>State</term> means a State, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands.</text></paragraph> 
<paragraph id="H885B83BAC6C9430BBAF6274E5637EA4C"><enum>(5)</enum><header>State plan</header><text>The term <term>State plan</term> means a comprehensive health care plan of a State participating in a State Care demonstration project under this title that meets the requirements of section 2203.</text></paragraph></section></title><after-quoted-block>.</after-quoted-block></quoted-block></section> 
</legis-body> 
</bill> 

