[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4858 Introduced in House (IH)]







109th CONGRESS
  2d Session
                                H. R. 4858

   To provide for the restoration of health care-related services in 
       Hurricane Katrina-affected areas, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 2, 2006

 Mr. Jefferson (for himself, Mrs. Christensen, Mr. Clay, Mr. Clyburn, 
Mr. Rangel, Mr. Davis of Illinois, Mr. Meeks of New York, Mrs. Jones of 
  Ohio, Ms. Lee, Mr. Bishop of Georgia, Ms. Eddie Bernice Johnson of 
 Texas, Mr. Lewis of Georgia, Mr. Al Green of Texas, Ms. Corrine Brown 
of Florida, Mr. Hastings of Florida, Mr. Scott of Virginia, Ms. Waters, 
Ms. Moore of Wisconsin, Ms. Millender-McDonald, Mr. Wynn, Mr. Scott of 
Georgia, Mr. Meek of Florida, Ms. Norton, Ms. Jackson-Lee of Texas, Mr. 
   Cleaver, Mr. Cummings, Ms. Kilpatrick of Michigan, and Mr. Owens) 
 introduced the following bill; which was referred to the Committee on 
   Energy and Commerce, and in addition to the Committee on Ways and 
 Means, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
   To provide for the restoration of health care-related services in 
       Hurricane Katrina-affected areas, 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 ``Katrina Health Access, Recovery, and 
Empowerment Act of 2006''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Findings.
Sec. 4. Hurricane Katrina-affected area defined.
             TITLE I--REBUILDING HEALTH CARE INFRASTRUCTURE

Sec. 101. Small business concerns.
Sec. 102. Credit for expenditures by health professionals in Hurricane 
                            Katrina-affected area for medical 
                            professional malpractice insurance.
Sec. 103. Deduction for premiums of physicians in Hurricane Katrina-
                            affected area for medical liability 
                            insurance for high risk specialties.
Sec. 104. Deduction for premiums for medical liability insurance for 
                            practices in Hurricane Katrina-affected 
                            area serving medically underserved 
                            communities.
Sec. 105. Grants and contracts regarding health provider shortages.
  TITLE II--REBUILDING PIPELINES OF PROVIDERS IN MEDICALLY NEEDY AND 
                   UNDERSERVED AREAS AND COMMUNITIES

Sec. 201. Amendment to the Public Health Service Act.
          TITLE III--PROVIDING RELIEF TO ACADEMIC INSTITUTIONS

Sec. 301. Grants to institutions of higher education.
TITLE IV--RESTORING KEY COMPONENTS OF THE HEALTH CARE INFRASTRUCTURE IN 
            MEDICALLY-NEEDY AND MEDICALLY UNDERSERVED AREAS

Sec. 401. Medically-needy Katrina recovery zones.
Sec. 402. Repair and disparities grants.
Sec. 403. Disaster relief Medicaid.

SEC. 3. FINDINGS.

    The Congress finds the following:
            (1) Many of the communities that were most affected by 
        Hurricane Katrina had poor health care infrastructures and some 
        of the highest poverty rates before the storm reached the 
        coast. For example, Louisiana had the fourth highest 
        uninsurance rate in the Nation and nearly one in four residents 
        was living in poverty. Today, the number of people from the 
        Gulf Coast who are uninsured and lack access to adequate health 
        care has significantly increased.
            (2) Numerous studies show that poverty has a direct impact 
        on the health, health care, and well-being of all people.
            (3) Studies confirm that numerous factors exacerbate health 
        disparities, including: poverty; uninsurance; unemployment; low 
        educational attainment; the absence of culturally and 
        linguistically competent care; and a lack of access to housing, 
        needed health care services and treatments, and health care 
        information.
            (4) In New Orleans, more than 2 in 3 displaced providers 
        (4,486) were in three central New Orleans parishes--
        Plaquemines, St. Bernard, and Jefferson parishes--all of which 
        were evacuated (Ricketts 2005). Additionally, it is estimated 
        that more than one in three (35 percent) of the displaced 
        physicians in these three central New Orleans parishes were 
        primary care physicians (Ricketts 2005).
            (5) The Medical Center of Louisiana and New Orleans (MCLNO) 
        was the only Level 1 trauma center in the region and included 
        Charity and University Hospitals. More than 50 percent of 
        inpatient care provided by MCLNO was provided to uninsured 
        patients and more than 8 in 10 (85 percent) patients had annual 
        incomes that were $20,000 or less.

SEC. 4. HURRICANE KATRINA-AFFECTED AREA DEFINED.

    In this Act, the term ``Hurricane Katrina-affected area'' means an 
area in a county or parish in Alabama, Louisiana, or Mississippi, for 
which a major disaster has been declared in accordance with section 401 
of the Robert T. Stafford Disaster Relief and Emergency Assistance Act 
(42 U.S.C. 5170) as a result of Hurricane Katrina.

             TITLE I--REBUILDING HEALTH CARE INFRASTRUCTURE

SEC. 101. SMALL BUSINESS CONCERNS.

    (a) Loans.--During fiscal years 2006 and 2007, the Secretary of 
Health and Human Services shall provide low-interest loans to eligible 
small business concerns for the restoration of health care and other 
services connected to health care.
    (b) Cancellation of Loans.--At the end of the 5-year period 
beginning on the date of the provision of a loan under this section, 
the Secretary shall cancel the unpaid balance and any accrued interest 
on the loan if the eligible small business concern meets each of the 
following:
            (1) The eligible small business concern is operating at 70 
        percent or greater of the level of operation of the concern 
        before Hurricane Katrina.
            (2) The eligible small business concern has not, because of 
        a change in ownership, control, or affiliation, ceased to be a 
        small business concern.
            (3) If the eligible small business concern provides direct 
        health care, the concern gives an assurance satisfactory to the 
        Secretary that the concern will not, because of a change in 
        ownership, control, or affiliation, cease to be a small 
        business concern during the 5 years following such 5-year 
        period.
            (4) If the eligible business concern does not provide 
        direct health care, the concern gives an assurance satisfactory 
        to the Secretary that the ownership of the concern will not, 
        because of a change in ownership, control, or affiliation, 
        cease to be a small business concern during the 2 years 
        following such 5-year period.
    (c) Consultation.--The Secretary shall carry out this section in 
consultation with--
            (1) the Office of Minority Health in the Department of 
        Health and Human Services; and
            (2) the Director of the Office of Small and Disadvantaged 
        Business Utilization (OFSDBU) in each of the Department of 
        Health and Human Services and the Department of Homeland 
        Security.
    (d) Eligible Small Business Concern.--In this section, the term 
``eligible small business concern'' means a small business concern 
that--
            (1) was located in a Hurricane Katrina-affected area as of 
        August 28, 2005; and
            (2) provides health care or health care-related services to 
        individuals in such area.
    (e) Use of Loans.--A loan under this section shall be used for the 
restoration of health care for individuals in a Hurricane Katrina-
affected area or for the restoration of other services connected to 
such health care. Such restoration may include rebuilding physical 
structures.
    (f) Application.--
            (1) In general.--To seek a loan under this section, an 
        eligible small business concern shall submit an application to 
        the Secretary at such time, in such manner, and containing such 
        information as the Secretary may require.
            (2) Approval.--Not later than 30 days after the receipt of 
        an application for a loan under this section, the Secretary 
        shall approve or disapprove the application. If the Secretary 
        disapproves the application, the Secretary shall provide the 
        applicant with a written explanation of the reasons for the 
        disapproval.
    (g) Priority.--In making loans under this section, the Secretary 
shall give--
            (1) highest priority to eligible small business concerns 
        providing direct health care primarily to medically-needy 
        individuals; and
            (2) second highest priority to eligible small business 
        concerns providing health-care related services primarily to 
        medically-needy individuals.
    (h) Other Definitions.--In this section:
            (1) The term ``small business concern'' has the meaning 
        given to that term in section 3 of the Small Business Act (15 
        U.S.C. 632) and the regulations promulgated thereunder.
            (2) The term ``Secretary'' means the Secretary of Health 
        and Human Services.
    (i) Authorization of Appropriations.--To carry out this section, 
there are authorized to be appropriated such sums as may be necessary 
for fiscal years 2006 through 2012.

SEC. 102. CREDIT FOR EXPENDITURES BY HEALTH PROFESSIONALS IN HURRICANE 
              KATRINA-AFFECTED AREA FOR MEDICAL PROFESSIONAL 
              MALPRACTICE INSURANCE.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business tax credits) 
is amended by adding at the end the following:

``SEC. 45N. CREDIT FOR EXPENDITURES BY HEALTH PROFESSIONALS IN 
              HURRICANE KATRINA-AFFECTED AREA FOR MEDICAL PROFESSIONAL 
              MALPRACTICE INSURANCE.

    ``(a) General Rule.--For purposes of section 38, in the case of a 
taxpayer who is an eligible health professional, the medical 
malpractice insurance expenditure tax credit determined under this 
section for a covered year shall equal 15 percent of the qualified 
medical malpractice insurance expenditures incurred by the professional 
during the covered year.
    ``(b) Definitions.--In this section:
            ``(1) Covered year.--The term `covered year' means taxable 
        years beginning in 2005 and 2006.
            ``(2) Eligible health professional.--The term `eligible 
        health professional' means a physician, nurse, mental health 
        provider, pharmacist, paramedic, dentist, allied health 
        professional, hospice care provider, or other individual health 
        care provider whose primary place of employment is located in 
        the Hurricane Katrina-affected area.
            ``(3) Hurricane katrina-affected area.--The term `Hurricane 
        Katrina-affected area' means an area in a county or parish in 
        Alabama, Louisiana, or Mississippi, for which a major disaster 
        has been declared in accordance with section 401 of the Robert 
        T. Stafford Disaster Relief and Emergency Assistance Act as a 
        result of Hurricane Katrina.
            ``(4) Qualified medical malpractice insurance 
        expenditure.--The term `qualified medical malpractice insurance 
        expenditure' means so much of any professional insurance 
        premium, surcharge, payment, or other cost or expense required 
        as a condition of State licensure which is incurred by an 
        eligible health professional in a covered year for the sole 
        purpose of providing or furnishing general medical malpractice 
        liability insurance for such eligible health professional as 
        does not exceed twice the Statewide average of such costs for 
        similarly situated eligible health professionals.
    ``(c) Special Rules.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        credit determined under this section shall be claimed by the 
        eligible health professional incurring the qualified medical 
        malpractice insurance expenditure.
            ``(2) Certification.--Each State, through its board of 
        medical licensure and State board (or agency) regulating 
        insurance, annually shall provide such information to the 
        Secretary of Health and Human Services as is necessary to 
        permit the Secretary to calculate average costs for purposes of 
        subsection (b)(4) and to certify such average costs (rounded to 
        the nearest whole dollar) to the Secretary of the Treasury on 
        or before the 15th day of November of each year.''.
    (b) Credit Made Part of General Business Credit.--Section 38(b) of 
such Code (relating to current year business credit) is amended by 
striking ``and'' at the end of paragraph (25), by striking the period 
at the end of paragraph (26) and inserting ``, and'', and by adding at 
the end the following new paragraph:
            ``(27) the medical malpractice insurance expenditure tax 
        credit determined under section 45N(a).''.
    (c) Denial of Double Benefit.--Section 280C of the Internal Revenue 
Code of 1986 (relating to certain expenses for which credits are 
allowable) is amended by adding at the end the following new 
subsection:
    ``(d) Credit for Medical Malpractice Liability Insurance 
Premiums.--
            ``(1) In general.--No deduction shall be allowed for that 
        portion of the qualified medical malpractice insurance 
        expenditures (as defined in section 45N(b)) otherwise allowable 
        as a deduction for the taxable year which is equal to the 
        amount of the credit allowable for the taxable year under 
        section 45 (determined without regard to section 38(c)).
            ``(2) Controlled groups.--In the case of a corporation 
        which is a member of a controlled group of corporations (within 
        the meaning of section 41(f)(5)) or a trade or business which 
        is being treated as being under common control with other 
        trades or business (within the meaning of section 41(f)(1)(B)), 
        this subsection shall be applied under rules prescribed by the 
        Secretary similar to the rules applicable under subparagraphs 
        (A) and (B) of section 41(f)(1).''.
    (d) Grants to Non-Profit Hospitals and Clinics.--
            (1) In general.--The Secretary of Health and Human 
        Services, acting through the Administrator of the Health 
        Resources and Services Administration, shall award grants to 
        eligible non-profit hospitals and clinics to assist such 
        hospitals and clinics in defraying qualified medical 
        malpractice insurance expenditures.
            (2) Eligible non-profit hospital or clinic.--To be eligible 
        to receive a grant under paragraph (1), an entity shall--
                    (A) be a non-profit hospital or clinic;
                    (B) be located in a the Hurricane Katrina-affected 
                area;
                    (C) serve primarily medically underserved 
                communities;
                    (D) be unable to claim the tax credit described in 
                section 45N of the Internal Revenue Code of 1986 for 
                the year for which an application is submitted under 
                subparagraph (E); and
                    (E) prepare and submit to the Secretary of Health 
                and Human Services an application at such time, in such 
                manner, and containing such information as the 
                Secretary may require.
            (3) Amount of grant.--The amount of a grant to a non-profit 
        hospital or clinic under paragraph (1) shall equal 15 percent 
        of the amount of the qualified medical malpractice insurance 
        expenditures of the hospital or clinic for the year involved.
            (4) Qualified medical malpractice insurance expenditure.--
        In this subsection, the term ``qualified medical malpractice 
        insurance expenditure'' means so much of any professional 
        insurance premium, surcharge, payment, or other cost or expense 
        required as a condition of State licensure which is incurred by 
        a non-profit hospital or clinic in a year for the sole purpose 
        of providing or furnishing general medical malpractice 
        liability insurance for such hospital or clinic as does not 
        exceed twice the Statewide average of such costs for similarly 
        situated hospitals or clinics.
            (5) Hurricane katrina-affected area.--In this subsection, 
        the term ``Hurricane Katrina-affected area'' means an area in a 
        county or parish in Alabama, Louisiana, or Mississippi, for 
        which a major disaster has been declared in accordance with 
        section 401 of the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act (42 U.S.C. 5170) as a result of 
        Hurricane Katrina.
            (6) Authorization of appropriations.--There are authorized 
        to be appropriated to carry out this subsection such sums as 
        may be necessary for each of fiscal years 2005 and 2006.
    (e) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new item:

``Sec. 45N. Credit for expenditures by health professionals in 
                            Hurricane Katrina-affected area for medical 
                            professional malpractice insurance.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to expenditures incurred on or after August 29, 2005, in taxable 
years ending after such date.

SEC. 103. DEDUCTION FOR PREMIUMS OF PHYSICIANS IN HURRICANE KATRINA-
              AFFECTED AREA FOR MEDICAL LIABILITY INSURANCE FOR HIGH 
              RISK SPECIALTIES.

    (a) In General.--Part VI of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to itemized deductions for 
individuals and corporations) is amended by adding at the end the 
following new section:

``SEC. 199A. DEDUCTION FOR PREMIUMS OF PHYSICIANS IN HURRICANE KATRINA-
              AFFECTED AREA FOR MEDICAL LIABILITY INSURANCE FOR HIGH 
              RISK SPECIALTIES.

    ``(a) In General.--In the case of a physician whose medical 
practice is located in the Hurricane Katrina-affected area and is in a 
high risk specialty, there shall be allowed as a deduction from gross 
income for the taxable year an amount equal to 125 percent of the 
aggregate premiums paid for medical liability insurance with respect to 
such specialty for such taxable year.
    ``(b) High Risk Specialty.--
            ``(1) In general.--For purposes of this section, a 
        specialty is a high risk specialty for a taxable year if, for 
        the calendar year in which the taxable year begins, the average 
        premiums for medical liability insurance with respect to such 
        specialty are equal to or greater than 67 percent of the 
        average premiums for medical liability insurance for all 
        specialties for such calendar year, based on a weighted average 
        of the number of physicians practicing in each specialty.
            ``(2) Specialties taken into account.--For purposes of 
        paragraph (1), the Secretary, in consultation with the 
        Secretary of Health and Human Services and appropriate 
        professional organizations, shall determine the specialties to 
        be taken into account for purposes of paragraph (1) and shall 
        consider those specialities for which a payment may be made 
        under section 1886(h) of the Social Security Act. In making 
        such determination, the Secretary shall provide for an 
        appropriate treatment of subspecialties.
            ``(3) Publication of specialities.--The Secretary shall 
        publish the high risk specialities.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Hurricane katrina-affected area.--The term `Hurricane 
        Katrina-affected area' means an area in a county or parish in 
        Alabama, Louisiana, or Mississippi, for which a major disaster 
        has been declared in accordance with section 401 of the Robert 
        T. Stafford Disaster Relief and Emergency Assistance Act as a 
        result of Hurricane Katrina.
            ``(2) Physician.--The term `physician' has the meaning 
        given such term by section 1861(r)(1) of the Social Security 
        Act.
    ``(d) Special Rules.--For purposes of this section--
            ``(1) Medical practice spanning more than 1 specialty.--In 
        the case of a medical practice a portion of which is in a high 
        risk specialty, the portion of the premiums paid for medical 
        liability insurance that may be taken into account under 
        subsection (a) shall be determined under regulations prescribed 
        by the Secretary.
            ``(2) Group practice, etc.--Under regulations prescribed by 
        the Secretary, the deduction allowed by this section shall be 
        allowed in case of a group practice or health care facility 
        which is a C corporation in the manner prescribed by the 
        Secretary.
            ``(3) Denial of double benefit.--No deduction shall be 
        allowed under any other provision of this chapter for any 
        amount for which a deduction is allowed under this section.
    ``(e) Termination.--This section shall not apply to taxable years 
beginning after December 31, 2006.''.
    (b) Clerical Amendment.--The table of sections for part VI of 
subchapter B of chapter 1 of such Code is amended by adding at the end 
the following new item:

``Sec. 199A. Deduction for premiums of physicians in Hurricane Katrina-
                            affected area for medical liability 
                            insurance for high risk specialties.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending on or after August 29, 2005.

SEC. 104. DEDUCTION FOR PREMIUMS FOR MEDICAL LIABILITY INSURANCE FOR 
              PRACTICES IN HURRICANE KATRINA-AFFECTED AREA SERVING 
              MEDICALLY UNDERSERVED COMMUNITIES.

    (a) In General.--Part VI of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to itemized deductions for 
individuals and corporations) is amended by adding at the end the 
following new section:

``SEC. 199B. DEDUCTION FOR PREMIUMS FOR MEDICAL LIABILITY INSURANCE FOR 
              PRACTICES IN HURRICANE KATRINA-AFFECTED AREA SERVING 
              MEDICALLY UNDERSERVED COMMUNITIES.

    ``(a) In General.--In the case of a physician whose medical 
practice is located in the Hurricane Katrina-affected area and serves 
medically underserved communities, there shall be allowed as a 
deduction from gross income for the taxable year an amount equal to 125 
percent of the aggregate premiums paid for medical liability insurance 
with respect to such practice for such taxable year.
    ``(b) Definitions.--In this section:
            ``(1) Hurricane katrina-affected area.--The term `Hurricane 
        Katrina-affected area' means an area in a county or parish in 
        Alabama, Louisiana, or Mississippi, for which a major disaster 
        has been declared in accordance with section 401 of the Robert 
        T. Stafford Disaster Relief and Emergency Assistance Act as a 
        result of Hurricane Katrina.
            ``(2) Medically underserved community.--The term `medically 
        underserved community' means a medically underserved community 
        (as defined by section 799B of the Public Health Service Act) 
        that has been designated under one of the categories specified 
        in such section for a calendar year in which the taxable year 
        of the physician begins.
            ``(3) Physician.--The term `physician' has the meaning 
        given such term by section 1861(r)(1) of the Social Security 
        Act.
    ``(c) Special Rules.--For purposes of this section--
            ``(1) Medical practice spanning more than 1 community.--In 
        the case of a medical practice a portion of which serves a 
        medically underserved community, the portion of the premiums 
        paid for medical liability insurance that may be taken into 
        account under subsection (a) shall be determined under 
        regulations prescribed by the Secretary.
            ``(2) Group practice, etc.--Under regulations prescribed by 
        the Secretary, the deduction allowed by this section shall be 
        allowed in case of a group practice or health care facility 
        which is a C corporation in the manner prescribed by the 
        Secretary.
            ``(3) Denial of double benefit.--No deduction shall be 
        allowed under any other provision of this chapter for any 
        amount for which a deduction is allowed under this section.
            ``(4) Election.--A physician may elect whether to take a 
        deduction under this section or under section 199A.
    ``(d) Termination.--This section shall not apply to taxable years 
beginning after December 31, 2006.''.
    (b) Clerical Amendment.--The table of sections for part VI of 
subchapter B of chapter 1 of such Code is amended by adding at the end 
the following new item:

``Sec. 199B. Deduction for premiums for medical liability insurance for 
                            practices in Hurricane Katrina-affected 
                            area serving medically underserved 
                            communities.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending on or after August 29, 2005.

SEC. 105. GRANTS AND CONTRACTS REGARDING HEALTH PROVIDER SHORTAGES.

    Subpart I of part D of title III of the Public Health Service Act 
(42 U.S.C. 254b et seq.) is amended by adding at the end the following:

``SEC. 330M. GRANTS TO HEALTH PROVIDERS IN HURRICANE KATRINA-AFFECTED 
              AREA FOR COSTS OF MEDICAL MALPRACTICE INSURANCE.

    ``(a) In General.--The Secretary, acting through the Administrator 
of the Health Resources and Services Administration, may make awards of 
grants or contracts to health providers in the Hurricane Katrina-
affected area to assist the providers with the costs of maintaining 
medical malpractice insurance for providing health services in such 
area.
    ``(b) Requirement.--In accordance with such criteria as the 
Secretary may establish, awards under subsection (a) may be made to 
health providers only if such providers agree to provide health 
services (or to continue providing health services, as the case may be) 
in the Hurricane Katrina-affected area for the period during which 
payments under the awards are made to the health providers.
    ``(c) Definitions.--For purposes of this section:
            ``(1) The term `health providers' means physicians and 
        other health professionals, and organizations that provide 
        health services (including hospitals, clinics, and group 
        practices), that meet applicable legal requirements to provide 
        the health services involved.
            ``(2) The term `Hurricane Katrina-affected area' means an 
        area in a county or parish in Alabama, Louisiana, or 
        Mississippi, for which a major disaster has been declared in 
        accordance with section 401 of the Robert T. Stafford Disaster 
        Relief and Emergency Assistance Act (42 U.S.C. 5170) as a 
        result of Hurricane Katrina.''.

  TITLE II--REBUILDING PIPELINES OF PROVIDERS IN MEDICALLY NEEDY AND 
                   UNDERSERVED AREAS AND COMMUNITIES

SEC. 201. AMENDMENT TO THE PUBLIC HEALTH SERVICE ACT.

    The Public Health Service Act (42 U.S.C. 201 et seq.) is amended by 
adding at the end the following:

  ``TITLE XXIX--STRENGTHENING HEALTH INSTITUTIONS THAT PROVIDE HEALTH 
                      CARE TO MINORITY POPULATIONS

                    ``Subtitle A--General Provisions

``SEC. 2901. PAYMENTS TO HEALTH CARE FACILITIES.

    ``(a) In General.--The Secretary, with the approval of the Health 
Safety Net Infrastructure Trust Fund Board of Trustees described in 
section 2904(d) (hereafter in this subtitle referred to as the `Trust 
Fund Board'), shall make payments, from amounts in the Health Safety 
Net Infrastructure Trust Fund established under section 2904(a) 
(hereafter in this title referred to as the `Trust Fund'), for capital 
financing assistance to eligible health care facilities whose 
applications for assistance have been approved under this title.
    ``(b) General Eligibility Requirements for Assistance.--
            ``(1) Eligible health care facilities described.--A health 
        care facility shall be generally eligible for capital financing 
        assistance under this title if the health care facility is 
        located in the Hurricane Katrina-affected area and--
                    ``(A) receives an additional payment under section 
                1886(d)(5)(F) of the Social Security Act and is 
                described in clause (i)(II) or clause (vii)(I) of such 
                section, or is deemed a disproportionate share hospital 
                under a State plan for medical assistance under title 
                XIX of the Social Security Act on the basis described 
                in section 1923(b)(1) of such Act;
                    ``(B) is a hospital which meets the criteria for 
                designation by the Secretary as an essential access 
                community hospital under section 1820(i)(1) of such Act 
                or a rural primary care hospital under section 
                1820(i)(2) of such Act (whether or not such hospital is 
                actually designated under such section);
                    ``(C) as of August 29, 2005, was a Federally 
                qualified health center (as defined in section 
                1905(l)(2)(B) of such Act);
                    ``(D) is a hospital which--
                            ``(i) is a sole community provider; or
                            ``(ii) has closed within the preceding 12 
                        months;
                    ``(E) is a facility which--
                            ``(i) provides service to ill or injured 
                        individuals prior to the transportation of such 
                        individuals to a hospital or provides inpatient 
                        care to individuals needing such care for a 
                        period not longer than 96 hours;
                            ``(ii) is located in a county (or 
                        equivalent unit of local government) with fewer 
                        than 6 residents per square mile or is located 
                        more than 35 road miles from the nearest 
                        hospital;
                            ``(iii) permits a physician assistant or 
                        nurse practitioner to admit and treat patients 
                        under the supervision of a physician not 
                        present in such facility; and
                            ``(iv) has obtained a waiver from the 
                        Secretary permitting the facility to 
                        participate in the medicare program under title 
                        XVIII of the Social Security Act; or
                    ``(F) is a hospital that the Secretary otherwise 
                determines to be an appropriate recipient of assistance 
                under this title on the basis of the existence of a 
                patient care operating deficit, a demonstrated 
                inability to secure or repay financing for a qualifying 
                project on reasonable terms, or such other criteria as 
                the Secretary considers appropriate.
            ``(2) Ownership requirements.--In order to be eligible for 
        assistance under this title, a health care facility (other than 
        a health care facility described in subparagraphs (B) or (E) of 
        paragraph (1)) must--
                    ``(A) be owned or operated by a unit of State or 
                local government;
                    ``(B) be a quasi-public corporation, defined as a 
                private, nonprofit corporation or public benefit 
                corporation which is formally granted one or more 
                governmental powers by legislative action through (or 
                is otherwise partially funded by) the State 
                legislature, city or county council;
                    ``(C) be a private nonprofit health care facility 
                which has contracted with, or is otherwise funded by, a 
                governmental agency to provide health care services to 
                low income individuals not eligible for assistance 
                under title XVIII or title XIX of the Social Security 
                Act, where revenue from such contracts constitute at 
                least 10 percent of the facility's operating revenues 
                over the prior 3 fiscal years; or
                    ``(D) be a nonprofit small rural health care 
                facility (as determined by the Secretary).
            ``(3) Priority.--In making payments under this section, the 
        Secretary shall give priority to eligible health care entities 
        that are federally qualified health centers (as defined in 
        section 1905(l)(2)(B) of the Social Security Act), or other 
        similar entities at least 50 percent of the patients of which 
        are minority or low-income individuals.
    ``(c) Meeting Additional Specific Criteria.--Health care facilities 
that are generally eligible for assistance under this title under 
subsection (b) may apply for the specific programs described in this 
title and must meet any additional criteria for participation in such 
programs.
    ``(d) Assistance Available.--Capital financing assistance available 
under this title shall include loan guarantees, interest rate 
subsidies, matching loans, and direct grants. Health care facilities 
determined to be generally eligible for assistance under this title may 
apply for and receive more than one type of assistance under this 
title.

``SEC. 2902. APPLICATION FOR ASSISTANCE.

    ``(a) In General.--No health care facilities may receive assistance 
for a qualifying project under this title unless the health care 
facility--
            ``(1) has filed with the Secretary, in a form and manner 
        specified by the Secretary, with the advice and approval of the 
        Trust Fund Board (as described in section 2904(d)), an 
        application for assistance under this title;
            ``(2) establishes in its application (for its most recent 
        cost reporting period) that it meets the criteria for general 
        eligibility under this title;
            ``(3) includes a description of the project, including the 
        community in which it is located, and describes utilization and 
        services characteristics of the project and the health care 
        facility, and the patient population that is to be served;
            ``(4) describes the extent to which the project will 
        include the financial participation of State and local 
        governments if assistance is granted under this title, and all 
        other sources of financing sought for the project; and
            ``(5) establishes, to the satisfaction of the Secretary and 
        the Trust Fund Board, that the project meets the additional 
        criteria for each type of capital financing assistance for 
        which it is applying.
    ``(b) Criteria for Approval.--The Secretary, with the approval of 
the Trust Fund Board, shall determine for each application for 
assistance under this title--
            ``(1) whether the health care facility meets the general 
        eligibility criteria under section 2901(b);
            ``(2) whether the health care facility meets the specific 
        eligibility criteria of each type of assistance for which it 
        has applied, including whether the health care facility meets 
        any criteria for priority consideration for the type of 
        assistance for which it has applied;
            ``(3) whether the capital project for which assistance is 
        being requested is a qualifying project under this title; and
            ``(4) whether funds are available, pursuant to the 
        limitations of each program, to fully fund the request for 
        assistance.
    ``(c) Priority of Applications.--In addition to meeting the 
criteria otherwise described in this title, at the discretion of the 
Trust Fund Board, the Secretary shall give preference to those 
applications for qualifying projects that--
            ``(1)(A) are necessary to bring existing safety net health 
        care facilities into compliance with accreditation standards of 
        fire and life safety, seismic, or other related Federal, State 
        or local regulatory standards;
            ``(B) improve the provision of essential services such as 
        emergency medical and trauma services, AIDS and infectious 
        disease, perinatal, burn, primary care, and other services 
        which the Trust Fund Board may designate; or
            ``(C) provide access to otherwise unavailable essential 
        health services to the indigent and other needy persons within 
        the health care facility's territorial area;
            ``(2) include specific State or local governmental or other 
        non-Federal assurances of financial support if assistance for a 
        qualifying project is granted under this title; and
            ``(3) are unlikely to be financed without assistance 
        granted under this title.
    ``(d) Submission of Applications.--Applications under this title 
shall be submitted to the Secretary through the Trust Fund Board. If 
two or more health care facilities join in the project, the application 
shall be submitted by all participating health care facilities jointly. 
Such applications shall set forth all of the descriptions, plans, 
specifications, and assurances as required by this title and contain 
other such information as the Trust Fund Board shall require.
    ``(e) Opportunity for Appeal.--The Trust Fund Board shall afford a 
health care facility applying for a loan guarantee under this section 
an opportunity for a hearing if the guarantee is denied.
    ``(f) Applications for Amendments.--Amendment of an approved 
application shall be subject to approval in the same manner as an 
original application.

``SEC. 2903. PUBLIC SERVICE RESPONSIBILITIES.

    ``(a) In General.--Any health care facility accepting capital 
financing assistance under this title shall agree--
            ``(1) to make the services of the facility or portion 
        thereof to be constructed, acquired, or modernized available to 
        all persons; and
            ``(2) to provide a significant volume of services to 
        persons unable to pay therefore, consistent with other 
        provisions of this Act and the amount of assistance received 
        under this title.
    ``(b) Enforcement.--The Director of the Office for Civil Rights of 
the Department of Health and Human Services shall be given the power to 
enforce the public service responsibilities described in this section.

``SEC. 2904. HEALTH SAFETY NET INFRASTRUCTURE TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the Health Safety Net 
Infrastructure Trust Fund, consisting of such amounts as may be 
transferred, appropriated, or credited to such Trust Fund as provided 
in this title.
    ``(b) Authorization of Appropriations to Trust Fund.--There are 
authorized to be appropriated to the Trust Fund such sums as may be 
necessary to carry out the purposes of this title.
    ``(c) Expenditures From Trust Fund.--Amounts in the Trust Fund 
shall be available, pursuant to appropriations Acts, only for making 
expenditures to carry out the purposes of this title.
    ``(d) Board of Trustees; Composition; Meetings; Duties.--
            ``(1) In general.--There shall be created a Health Safety 
        Net Infrastructure Trust Fund Board of Trustees composed of the 
        Secretary of Health and Human Services, the Secretary of the 
        Treasury, the Assistant Secretary for Health, the Director of 
        the Office of Minority Health, and the Administrator of the 
        Centers for Medicare and Medicaid Services (all serving in 
        their ex officio capacities), and 5 public members who shall be 
        appointed for 4 year terms by the President, from the following 
        categories--
                    ``(A) one chief health officer from a State;
                    ``(B) one chief executive officer of a health care 
                facility that meets the general eligibility criteria of 
                this title;
                    ``(C) one representative of the financial 
                community; and
                    ``(D) two additional public or consumer 
                representatives.
            ``(2) Duties.--The Board of Trustees shall meet no less 
        than quarterly and shall have the responsibility to approve 
        implementing regulations, to establish criteria, and to 
        recommend and approve expenditures by the Secretary under the 
        programs set forth in this title.
            ``(3) Managing trustee.--The Secretary of the Treasury 
        shall serve as the Managing Trustee of the Trust Fund, and 
        shall be responsible for the investment of funds. The 
        provisions of subsections (b) through (e) of section 1817 of 
        the Social Security Act shall apply to the Trust Fund and the 
        Managing Trustee of the Trust Fund in the same manner as they 
        apply to the Federal Hospital Insurance Trust Fund and the 
        Managing Trustee of that Trust Fund.

``SEC. 2905. ADMINISTRATION.

    ``(a) In General.--The Administrator of the Centers for Medicare 
and Medicaid Services shall serve as Secretary of the Board of Trustees 
and shall administer the programs under this title.
    ``(b) Limitation on Administrative Expenses.--Not more than 5 
percent of the funds annually appropriated to the Trust Fund may be 
available for administration of the Trust Fund or programs under this 
title.

                     ``Subtitle B--Loan Guarantees

``SEC. 2911. PROVISION OF LOAN GUARANTEES TO SAFETY NET HEALTH CARE 
              FACILITIES.

    ``(a) In General.--The Safety Net Infrastructure Trust Fund will 
provide a Federal guarantee of loan repayment, including guarantees of 
repayment of refinancing loans, to non-Federal lenders making loans to 
eligible health care facilities for health care facility replacement 
(either by construction or acquisition), modernization and renovation 
projects, and capital equipment acquisition.
    ``(b) Purposes.--The loan guarantee program shall be designed by 
the Trust Fund Board with the goal of rebuilding and maintaining the 
essential health services of health care facilities eligible for 
assistance under this title.

``SEC. 2912. ELIGIBLE LOANS.

    ``(a) In General.--Loan guarantees under this subtitle are 
available for loans made to eligible health care facilities for 
replacement facilities (either newly constructed or acquired), 
modernization and renovation of existing facilities, and for capital 
equipment acquisition.
    ``(b) Loan Guarantee Must Be Essential to Bond Financing.--Eligible 
health care facilities must demonstrate that a Federal loan guarantee 
is essential to obtaining bond financing from non-Federal lenders at a 
reasonably affordable rate of interest.
    ``(c) Additional Eligibility Criteria for Loan Guarantees.--In 
order to be eligible for assistance under this subtitle, a health care 
facility must demonstrate that the following criteria are met:
            ``(1) The health care facility has evidence of an ability 
        to meet debt service.
            ``(2) The assistance, when considered with other resources 
        available to the project, is necessary and will restore, 
        improve, or maintain the financial or physical soundness of the 
        health care facility.
            ``(3) The applicant agrees to assume the public service 
        responsibilities described in section 2903.
            ``(4) The project is being, or will be, operated and 
        managed in accordance with a management-improvement-and-
        operating plan which is designed to reduce the operating costs 
        of the project, which has been approved by the Trust Fund 
        Board, and which includes--
                    ``(A) a detailed maintenance schedule;
                    ``(B) a schedule for correcting past deficiencies 
                in maintenance, repairs, and replacements;
                    ``(C) a plan to upgrade the project to meet cost-
                effective energy efficiency standards prescribed by the 
                Trust Fund Board;
                    ``(D) a plan to improve financial and management 
                control systems;
                    ``(E) a detailed annual operating budget taking 
                into account such standards for operating costs in the 
                area as may be determined by the Trust Fund Board; and
                    ``(F) such other requirements as the Trust Fund 
                Board may determine.
            ``(5) The application includes stringent provisions for 
        continued State or local support of the program, both with 
        respect to operating and financial capital.
            ``(6) The terms, conditions, maturity, security (if any), 
        and schedule and amount of repayments with respect to the loan 
        are sufficient to protect the financial interests of the United 
        States and are otherwise reasonable and in accord with 
        regulation, including a determination that the rate of interest 
        does not exceed such annual percentage on the principal 
        obligation outstanding as the Trust Fund Board determines to be 
        reasonable, taking into account the range of interest rates 
        prevailing in the private market for similar loans and the 
        risks assumed by the United States.
            ``(7) The health care facility must meet such other 
        additional criteria as the Secretary may impose.
    ``(d) State or Local Participation.--Projects in which State or 
local governmental entities participate in the form of first guarantees 
of part or all of the total loan value shall be given a preference for 
loan guarantees under this subtitle.

``SEC. 2913. GUARANTEE ALLOTMENTS.

    ``(a) In General.--$150,000,000 shall be annually allocated within 
the Trust Fund to the loan guarantee program established by this 
subtitle in order to create a cumulative reserve in support of loan 
guarantees.
    ``(b) Loan Guarantees for Rural Health Care Facilities.--At least 
20 percent of the dollar value of loan guarantees made under this 
program during any given year shall be allocated for eligible rural 
health care facilities, to the extent a sufficient number of 
applications are made by such health care facilities.
    ``(c) Guarantees for Small Loans.--At least $200,000,000 of the 
annual dollar value of loan guarantees made under the program shall be 
reserved for loans of under $50,000,000, if there are a sufficient 
number of applicants for loans of that size.
    ``(d) Special Rule for Refinancing Loans.--Not more than 20 percent 
of the amount allocated each year to the loan guarantee program 
established by this subtitle may be allocated to guarantee refinancing 
loans during the year.

``SEC. 2914. TERMS AND CONDITIONS OF LOAN GUARANTEES.

    ``(a) In General.--The principal amount of the guaranteed loan, 
when added to any Federal grant assistance made under this title, may 
not exceed 95 percent of the total value of the project, including 
land.
    ``(b) Guarantees Provided May not Supplant Other Funds.--Guarantees 
provided under this subtitle may not be used to supplant other forms of 
State or local support.
    ``(c) Right to Recover Funds.--The United States shall be entitled 
to recover from any applicant health care facility the amount of 
payments made pursuant to any loan guarantee under this subtitle, 
unless the Trust Fund Board for good cause waives its right of 
recovery, and the United States shall, upon making any such payment 
pursuant to any such loan guarantee be subrogated to all of the rights 
of the recipients of the payments.
    ``(d) Modification of Terms.--Loan guarantees made under this 
subtitle shall be subject to further terms and conditions as the Trust 
Fund Board determines to be necessary to assure that the purposes of 
this Act will be achieved, and any such terms and conditions may be 
modified by the Trust Fund Board to the extent that it determines such 
modifications to be consistent with the financial interest of the 
United States.
    ``(e) Terms Are Incontestable Absent Fraud or Misrepresentation.--
Any loan guarantee made by the Trust Fund Board pursuant to this 
subtitle shall be incontestable in the hands of an applicant on whose 
behalf such guarantee is made, and as to any person who makes or 
contracts to make a loan to such applicant in reliance thereon, except 
for fraud or misrepresentation on the part of such applicant or other 
person.

``SEC. 2915. PREMIUMS FOR LOAN GUARANTEES.

    ``(a) In General.--The Trust Fund Board shall determine a 
reasonable loan insurance premium which shall be charged for loan 
guarantees under this subtitle, taking into account the availability of 
the reserves created under section 2913. Premium charges shall be 
payable in cash to the Trust Fund Board, either in full upon issuance, 
or annually in advance. In addition to the premium charge herein 
provided for, the Trust Fund Board is authorized to charge and collect 
such amount as it may deem reasonable for the appraisal of a property 
or project offered for insurance and for the inspection of such 
property or project.
    ``(b) Payment in Advance.--In the event that the principal 
obligation of any loan accepted for insurance under this subtitle is 
paid in full prior to the maturity date, the Trust Fund Board is 
authorized in its discretion to require the payment by the borrower of 
an adjusted premium charge in such amount as the Board determines to be 
equitable, but not in excess of the aggregate amount of the premium 
charges that the health care facility would otherwise have been 
required to pay if the loan had continued to be insured until maturity 
date.
    ``(c) Cancellation of Loan.--In the event that any portion of a 
loan accepted for insurance under this subtitle is cancelled by the 
lender, the Trust Fund Board shall cancel the obligation of the 
borrower to pay premium charges on such portion for the period 
remaining through the maturity date of the loan.
    ``(d) Trust Fund Board May Waive Premiums.--The Trust Fund Board 
may in its discretion partially or totally waive premiums charged for 
loan insurance under this section for financially distressed health 
care facilities (as described by the Secretary).

``SEC. 2916. PROCEDURES IN THE EVENT OF LOAN DEFAULT.

    ``(a) In General.--Failure of the borrower to make payments due 
under or provided by the terms of a loan accepted for insurance under 
this subtitle shall constitute a default.
    ``(b) Assignment of Defaulted Loans.--If a default continues for 30 
days, then, upon the lender's transfer to the Trust Fund Board of all 
its rights and interests arising under the defaulted loan or in 
connection with the loan transaction, the lender shall be entitled to 
debentures which, together with a certificate of claim, are equal in 
value to the amount the lender would have received if, on the date of 
transfer, the borrower had repaid the loan in full, together with the 
amount of necessary expenses incurred by the lender in connection with 
the default.
    ``(c) Foreclosure by Lender.--Subject to the approval of the Trust 
Fund Board, or as provided in regulations, the lender may foreclose on 
the property securing the defaulted loan.
    ``(d) Foreclosure by Trust Fund Board.--The Trust Fund Board is 
authorized to--
            ``(1) acquire possession of and title to any property 
        securing a defaulted loan by voluntary conveyance in 
        extinguishment of the indebtedness, or
            ``(2) institute proceedings for foreclosure on the property 
        securing any such defaulted loan and prosecute such proceedings 
        to conclusion.
    ``(e) Handling and Disposal of Property; Settlement of Claims.--
            ``(1) Payment for certain expenses.--Notwithstanding any 
        other provision of law relating to the acquisition, handling, 
        or disposal of real and other property by the United States, 
        the Trust Fund Board shall also have power, for the protection 
        of the interests of the Trust Fund, to pay out of the Trust 
        Fund all expenses or charges in connection with, and to deal 
        with, complete, reconstruct, rent, renovate, modernize, insure, 
        make contracts for the management of, or establish suitable 
        agencies for the management of, or sell for cash or credit or 
        lease in its discretion, any property acquired by the Trust 
        Fund under this section.
            ``(2) Settlement of claims.--Notwithstanding any other 
        provision of law, the Trust Fund Board shall also have the 
        power to pursue to final collection by way of compromise or 
        otherwise all claims assigned and transferred to the Trust Fund 
        in connection with the assignment, transfer, and delivery 
        provided for in this section, and at any time, upon default, to 
        foreclose or refrain from foreclosing on any property secured 
        by any defaulted loan assigned and transferred to or held by 
        the Trust Fund.
            ``(3) Limitations on authority.--Subsections (a) and (b) 
        shall not be construed to apply to any contract for hazard 
        insurance, or to any purchase or contract for services or 
        supplies on account of such property if the amount thereof does 
        not exceed $1,000.
    ``(f) Regulations.--The Trust Fund Board shall propose and the 
Secretary shall promulgate regulations governing procedures in the 
event of a default on a loan accepted for insurance under this 
subtitle.''.

          TITLE III--PROVIDING RELIEF TO ACADEMIC INSTITUTIONS

SEC. 301. GRANTS TO INSTITUTIONS OF HIGHER EDUCATION.

    (a) In General.--The Secretary of Health and Human Services, in 
consultation with the Secretary of Education, shall enter into 
cooperative agreements with institutions of higher education in the 
Hurricane Katrina-affected area to enable such institutions to resume 
health care-related programs, including by--
            (1) retaining health and health care-related staff and 
        personnel; and
            (2) paying costs incurred during the period beginning on 
        August 28, 2005, during which such institutions are unable to 
        provide academic services at full capacity because of the 
        effects Hurricane Katrina.
    (b) Application.--To seek to enter into a cooperative agreement 
under this section, an institution of higher education shall submit an 
application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may require.
    (c) Definitions.--In this section:
            (1) The term ``institution of education'' has the meaning 
        given to that term in section 101 of the Higher Education Act 
        of 1965 (20 U.S.C. 1001).
            (2) The term ``Secretary'' means the Secretary of Health 
        and Human Services.
    (d) Authorization of Appropriations.--To carry out this section, 
there are authorized to be appropriated such sums as may be necessary 
for fiscal year 2006 and 2007.

TITLE IV--RESTORING KEY COMPONENTS OF THE HEALTH CARE INFRASTRUCTURE IN 
            MEDICALLY-NEEDY AND MEDICALLY UNDERSERVED AREAS

SEC. 401. MEDICALLY-NEEDY KATRINA RECOVERY ZONES.

    (a) Medically-Needy Katrina Recovery Zone Program.--
            (1) In general.--The Secretary of Health and Human 
        Services, acting through the Administrator of the Health 
        Resources and Services Administration and the Director of the 
        Office of Minority Health, and in cooperation with the Director 
        of the Office of Community Services and the Director of the 
        National Center on Minority Health and Health Disparities--
                    (A) shall designate medically-needy Katrina 
                recovery zones in accordance with paragraph (2); and
                    (B) shall make grants in accordance with paragraph 
                (3).
            (2) Designation of medically-needy katrina recovery 
        zones.--The Secretary shall designate a community as a 
        medically-needy Katrina recovery zone if--
                    (A) a community partnership seeking a grant under 
                this section requests that the community be designated 
                as a medically-needy Katrina recovery zone; and
                    (B) the community partnership demonstrates, to the 
                Secretary's satisfaction, that the community--
                            (i) is located in a Hurricane Katrina-
                        affected area; and
                            (ii) experiences disproportionate racial 
                        and ethnic disparities in health status and 
                        health care.
            (3) Grants.--The Secretary shall make grants to community 
        partnerships of private and public entities to establish 
        medically-needy Katrina recovery zone programs.
            (4) Use of funds.--Grants under this section shall be used 
        for the establishment of a medically-needy Katrina recovery 
        zone program to assist individuals, businesses, schools, 
        minority health associations, nonprofit organizations, 
        community-based organizations, hospitals, health care clinics, 
        dental and mental health facilities and centers, substance 
        abuse facilities, hospice care organizations, and foundations 
        in a medically-needy Katrina recovery zone that are seeking--
                    (A) to effectively access Federal programs to 
                eliminate racial and ethnic disparities in health 
                status and health care; and
                    (B) to coordinate the efforts of governmental and 
                private entities regarding the elimination of racial 
                and ethnic disparities in health status and health 
                care.
            (5) Application.--To seek the designation of a community as 
        a medically-needy Katrina recovery zone and to obtain a grant 
        under this section, a community partnership shall submit to the 
        Secretary an application in such form and in such manner as the 
        Secretary may require. An application under this paragraph 
        shall--
                    (A) demonstrate that the community to be served is 
                a low-income community that experiences 
                disproportionate disparities in health status and 
                health care;
                    (B) set forth a strategic plan for the proposed 
                medically-needy Katrina recovery zone program, by--
                            (i) describing the coordinated health, 
                        economic, human, community, and physical 
                        development plan and related activities 
                        proposed for the community involved;
                            (ii) describing the inclusion of the 
                        community involved as a full partner in the 
                        process of developing, implementing, 
                        monitoring, and evaluating the strategic plan 
                        and the extent to which local institutions and 
                        organizations have contributed to the planning 
                        process;
                            (iii) identifying the projected amount of 
                        Federal, State, local, and private resources 
                        that will be available in the area and the 
                        private and public community partnerships to be 
                        used (including any participation by or 
                        cooperation with universities, colleges, 
                        foundations, nonprofit organizations, medical 
                        centers, hospitals, health clinics, dental and 
                        mental health facilities and centers, substance 
                        abuse facilities, hospice care organizations, 
                        school districts, or other private and public 
                        entities);
                            (iv) identifying the funding requested 
                        under any Federal program in support of the 
                        proposed health, economic, human, community, 
                        and physical development, and related 
                        activities;
                            (v) identifying baselines, methods, health 
                        outcomes, and benchmarks for measuring the 
                        success of carrying out the strategic plan;
                            (vi) demonstrating the ability to 
                        effectively reach and service the targeted 
                        underserved community populations in a 
                        culturally appropriate and linguistically 
                        responsive manner;
                            (vii) demonstrating a capacity and 
                        infrastructure to provide long-term community 
                        response that is culturally appropriate and 
                        linguistically responsive to a community that 
                        experiences disproportionate disparities in 
                        health status and health care; and
                            (viii) identifying the individuals who have 
                        agreed to serve as members of a medically-needy 
                        Katrina recovery zone coordinating committee 
                        for the community involved; and
                    (C) include such other information as the Secretary 
                may require.
            (6) Preference.--In awarding grants under this subsection, 
        the Secretary shall give preference to proposals from 
        indigenous community entities that have an expertise in 
        providing culturally appropriate and linguistically responsive 
        services to low-income communities that experience 
        disproportionate disparities in health status and health care.
    (b) Federal Assistance for Medically-Needy Katrina Recovery Zone 
Grant Programs.--The Secretary of Health and Human Services, the 
Administrator of the Small Business Administration, the Secretary of 
Agriculture, the Secretary of Education, the Secretary of Labor, and 
the Secretary of Housing and Urban Development shall each--
            (1) where appropriate, provide entity-specific technical 
        assistance and evidence-based strategies to low-income 
        communities that experience disproportionate disparities in 
        health status and health care to further the purposes of a 
        medically-needy Katrina recovery zone program described in 
        subsection (a)(5);
            (2) identify all programs administered by the Department of 
        Health and Human Services, the Small Business Administration, 
        the Department of Agriculture, the Department of Education, the 
        Department of Labor, and the Department of Housing and Urban 
        Development, respectively, that may be used to further the 
        purposes of a medically-needy Katrina recovery zone program 
        described in subsection (a)(5); and
            (3) in administering any program identified under paragraph 
        (2), give priority to any individual or entity located in a 
        community served by a medically-needy Katrina recovery zone 
        program under subsection (a) if such priority would further the 
        purposes of the medically-needy Katrina recovery zone program 
        described in subsection (a)(5).
    (c) Medically-Needy Katrina Recovery Zone Coordinating Committee.--
            (1) Establishment.--For each medically-needy Katrina 
        recovery zone program established with a grant under subsection 
        (a), the Secretary, acting through the Director of the Office 
        of Minority Health and the Administrator of the Health 
        Resources and Services Administration, shall establish a 
        medically-needy Katrina recovery zone coordinating committee.
            (2) Duties.--Each coordinating committee established, in 
        coordination with the Director of the Office of Minority Health 
        and the Administrator of the Health Resources and Services 
        Administration, shall provide technical assistance and 
        evidence-based strategies to the grant recipient involved, 
        including providing guidance on research, strategies, health 
        outcomes, program goals, management, implementation, 
        monitoring, assessment, and evaluation processes.
            (3) Membership.--
                    (A) Appointment.--The Director of the Office of 
                Minority Health and the Administrator of the Health 
                Resources and Services Administration, in consultation 
                with the respective grant recipient, shall appoint the 
                members of each coordinating committee.
                    (B) Composition.--The Director of the Office of 
                Minority Health and the Administrator of the Health 
                Resources and Services Administration shall ensure that 
                each coordinating committee--
                            (i) has not more than 20 members;
                            (ii) includes individuals from low-income 
                        communities that experience disproportionate 
                        disparities in health status and health care;
                            (iii) includes community leaders and 
                        leaders of community-based organizations;
                            (iv) includes representatives of academia 
                        and lay and professional organizations and 
                        associations including those having expertise 
                        in medicine, technical, social and behavioral 
                        science, health policy, advocacy, cultural and 
                        linguistic competency, research management, 
                        dental and mental health, substance abuse, 
                        hospice care, and organization; and
                            (v) represents a reasonable cross-section 
                        of knowledge, views, and application of 
                        expertise on societal, ethical, behavioral, 
                        educational, policy, legal, cultural, 
                        linguistic, and workforce issues related to 
                        eliminating disparities in health and health 
                        care.
                    (C) Qualifications.--The Director of the Office of 
                Minority Health and the Administrator of the Health 
                Resources and Services Administration shall ensure that 
                the members of each coordinating committee meet the 
                following:
                            (i) No member is employed by the Federal 
                        Government.
                            (ii) Each member has appropriate 
                        experience, including experience in the areas 
                        of community development, cultural and 
                        linguistic competency, reducing and eliminating 
                        racial and ethnic disparities in health and 
                        health care, or minority health.
                            (iii) A majority of the members reside in 
                        the medically-needy Katrina recovery zone 
                        involved.
                    (D) Selection.--In selecting individuals to serve 
                on a coordinating committee, the Director of the Office 
                of Minority Health and the Administrator of the Health 
                Resources and Services Administration shall give due 
                consideration to the recommendations of the Congress, 
                industry leaders, the scientific community (including 
                the Institute of Medicine), academia, community-based 
                nonprofit organizations, minority health and related 
                organizations, the education community, State and local 
                governments, and other appropriate organizations.
                    (E) Chairperson.--The Director of the Office of 
                Minority Health and the Administrator of the Health 
                Resources and Services Administration, in consultation 
                with the members of the coordinating committee 
                involved, shall designate a chairperson of the 
                coordinating committee, who shall serve for a term of 3 
                years and who may be reappointed at the expiration of 
                each such term.
                    (F) Terms.--Each member of a coordinating committee 
                shall be appointed for a term of 1 to 3 years in 
                overlapping staggered terms, as determined by the 
                Director of the Office of Minority Health and the 
                Administrator of the Health Resources and Services 
                Administration at the time of appointment, and may be 
                reappointed at the expiration of each such term.
                    (G) Vacancies.--A vacancy on a coordinating 
                committee shall be filled in the same manner in which 
                the original appointment was made.
                    (H) Compensation.--The members of a coordinating 
                committee shall serve without pay.
                    (I) Travel expenses.--Each member of a coordinating 
                committee shall receive travel expenses, including per 
                diem in lieu of subsistence, in accordance with 
                applicable provisions under subchapter I of chapter 57 
                of title 5, United States Code.
            (4) Staff; experts and consultants.--
                    (A) Staff.--The chairperson of a coordinating 
                committee may appoint and fix the pay of additional 
                personnel as the chairperson considers appropriate.
                    (B) Experts and consultants.--The chairperson of a 
                coordinating committee may procure temporary and 
                intermittent services under section 3109(b) of title 5, 
                United States Code.
            (5) Meetings.--A coordinating committee shall meet 3 to 5 
        times each year, at the call of the coordinating committee's 
        chairperson and in consultation with the Director of the Office 
        of Minority Health and the Administrator of the Health 
        Resources and Services Administration.
            (6) Report.--Each coordinating committee shall transmit to 
        the Congress an annual report that, with respect to the 
        medically-needy Katrina recovery zone program involved, 
        includes the following:
                    (A) A review of the program's effectiveness in 
                achieving stated goals and outcomes, and overcoming 
                challenges.
                    (B) A review of the program's management and 
                coordination of the entities involved.
                    (C) A review of the activities in the program's 
                portfolio and components.
                    (D) An identification of policy issues raised by 
                the program.
                    (E) An assessment of program's results including 
                that of capacity, infrastructure, number of underserved 
                minority communities reached and retained in the effort 
                in a defined time frame.
                    (F) Recommendations for new program goals, research 
                areas, enhanced approaches, community partnerships, 
                coordination and management mechanisms, and projects to 
                be established to achieve the program's stated goals, 
                to improve outcomes, assessments, monitoring, and 
                evaluation.
                    (G) A review of the degree of minority entities 
                participation in the program, and an identification of 
                a strategy to increase such participation.
                    (H) Any other reviews or recommendations determined 
                to be appropriate by the coordinating committee.
    (d) Report.--The Director of the Office of Minority Health and the 
Administrator of the Health Resources and Services Administration shall 
submit a joint annual report to the appropriate committees of the 
Congress on the results of the implementation of programs under this 
section.
    (e) Definitions.--In this section:
            (1) Coordinating committee.--The term ``coordinating 
        committee'' means a medically-needy Katrina recovery zone 
        coordinating committee established under this section.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $100,000,000 for the period of 
fiscal year 2006 through fiscal year 2007, and such sums as may be 
necessary for each of fiscal years 2008 through 2013.

SEC. 402. REPAIR AND DISPARITIES GRANTS.

    (a) Construction and Repair Grants.--The Secretary of Health and 
Human Services (in this section referred to as the ``Secretary'') shall 
make grants to public health facilities and loans to private health 
facilities, for the purpose of constructing, modernizing, or repairing 
hospitals; clinics; health centers; laboratories; medical, mental, and 
dental health and hospice care clinics and centers; and other health 
facilities in the Hurricane Katrina-affected area damaged as a result 
of Hurricane Katrina including--
            (1) construction of hospitals, clinics, health centers, 
        laboratories, hospice centers, mental health and substance 
        abuse facilities that meet the standards of the Joint 
        Commission on the Accreditation of Health care Organizations 
        (referred to in this section as the ``JCAHO standards'');
            (2) repair or modernization of such public or private 
        hospitals or public facilities as provide health care or 
        health-related services; and
            (3) bringing hospitals and public health facilities in 
        compliance with such JCAHO standards and requirements of the 
        Centers for Medicare & Medicaid Services.
    (b) Health Disparity Grants.--The Secretary, acting through the 
Administrator of the Health and Human Resources Administration and the 
Director of the Office of Minority Health, and in consultation with the 
Director of the Office of Community Services and the Director of the 
National Center on Minority Health and Health Disparities, shall make 
grants to assist individuals, hospitals, businesses, schools, minority 
health associations, nonprofit organizations, community-based 
organizations, health care clinics, foundations, and other entities in 
communities that are located in a Hurricane Katrina-affected area, 
disproportionately experience disparities in health status and health 
care, and are seeking--
            (1) to improve the health of minority individuals in the 
        community and to reduce disparities in health status and health 
        care by assisting individuals in accessing Federal programs or 
        by other means; and
            (2) to coordinate the efforts of governmental and private 
        entities regarding the elimination of racial and ethnic health 
        status and health care.
    (c) Application.--To obtain a grant under this section, an 
applicant shall submit to the Secretary an application in such form and 
in such manner as the Secretary may require. An application for a grant 
under--
            (1) subsection (a) shall describe, with such specificity as 
        the Secretary shall require, the damage sustained as a result 
        of Hurricane Katrina and the steps proposed to address the 
        damage; and
            (2) subsection (b) shall demonstrate that the communities 
        to be served are those that disproportionately experience 
        disparities in health status and health care and shall set 
        forth a strategic plan for reducing those disparities by--
                    (A) describing the coordinated health, economic, 
                human, community, and physical development plan and 
                related activities proposed for the community;
                    (B) identifying the projected amount of Federal, 
                State, local and private resources that will be 
                available in the area and the private and public 
                partnerships to be used (including any participation by 
                or cooperation with universities, colleges, 
                foundations, non-profit organizations, medical centers, 
                hospitals, health clinics, dental and mental health 
                facilities and centers, substance abuse facilities, 
                hospice care organizations, school districts, or other 
                private and public entities);
                    (C) identifying the funding requested under any 
                Federal program in support of the proposed activities;
                    (D) identifying benchmarks for measuring the 
                success of carrying out the strategic plan;
                    (E) demonstrating the ability to reach and service 
                the targeted underserved minority community populations 
                in a culturally appropriate and linguistically 
                responsive manner; and
                    (F) demonstrating a capacity and infrastructure to 
                provide long-term community response that is culturally 
                appropriate and linguistically responsive to 
                communities that disproportionately experience 
                disparities in health and health care.
    (d) Authorization of Appropriation.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for each of fiscal years 2006 through 2008.

SEC. 403. DISASTER RELIEF MEDICAID.

    (a) Authority to Provide Disaster Relief Medicaid.--Notwithstanding 
any provision of title XIX of the Social Security Act, a State shall, 
as a condition of participation in the Medicaid program established 
under title XIX of the Social Security (42 U.S.C. 1396 et seq.), 
provide medical assistance to DRM-eligible Katrina Survivors (as 
defined in subsection (b)) under a State Medicaid plan established 
under such title during the disaster relief Medicaid coverage period in 
accordance with the following provisions of this section and without 
submitting an amendment to the State Medicaid plan. Such assistance 
shall be referred to as ``Disaster Relief Medicaid Assistance (DRM 
assistance)''.
    (b) DRM-Eligible Katrina Survivor Defined.--
            (1) In general.--In this section, the term ``DRM-eligible 
        Katrina Survivor'' means a Katrina Survivor whose family income 
        does not exceed the higher of--
                    (A) 100 percent (200 percent, in the case of such a 
                Survivor who is a pregnant woman, child, or a recipient 
                of disability benefits under section 223 of the Social 
                Security Act) of the poverty line; or
                    (B) the income eligibility standard which would 
                apply to the Survivor under the State Medicaid plan.
            (2) No resources, residency, or categorical eligibility 
        requirements.--Eligibility under paragraph (1) shall be 
        determined without application of any resources test, State 
        residency, or categorical eligibility requirements.
            (3) Income determination.--
                    (A) Least restrictive income methodologies.--The 
                State shall use the least restrictive methodologies 
                applied under the State Medicaid plan under section 
                1902(r)(2) of the Social Security Act (42 U.S.C. 
                1396a(r)(2)) in determining income eligibility for 
                Katrina Survivors under paragraph (1).
                    (B) Disregard of unemployment benefits.--In 
                determining such income eligibility, the State shall 
                disregard any amount received under a law of the United 
                States or of a State which is in the nature of 
                unemployment compensation by a Katrina Survivor during 
                the DRM coverage period.
            (4) Definition of child.--For purposes of paragraph (1), a 
        DRM-eligible Katrina Survivor shall be determined to be a 
        ``child'' in accordance with the definition of ``child'' under 
        the State Medicaid plan.
    (c) Eligibility Determination; No Continuation of DRM Assistance.--
            (1) Streamlined eligibility process.--The State shall use 
        the following streamlined procedures in processing applications 
        and determining eligibility for DRM assistance for DRM-eligible 
        Katrina Survivors:
                    (A) A common 1-page application form developed by 
                the Secretary of Health and Human Services in 
                consultation with the National Association of State 
                Medicaid Directors. Such form shall--
                            (i) require an applicant to provide an 
                        expected address for the duration of the DRM 
                        coverage period and to agree to update that 
                        information if it changes during such period;
                            (ii) include notice regarding the penalties 
                        for making a fraudulent application under 
                        subsection (h);
                            (iii) require the applicant to assign to 
                        the State any rights of the applicant (or any 
                        other person who is a DRM-eligible Katrina 
                        Survivor and on whose behalf the applicant has 
                        the legal authority to execute an assignment of 
                        such rights) under any group health plan or 
                        other third-party coverage for health care; and
                            (iv) require the applicant to list any 
                        health insurance coverage which the applicant 
                        was enrolled in immediately prior to submitting 
                        such application.
                    (B) Self-attestation by the applicant that the 
                applicant--
                            (i) is a DRM-eligible Katrina Survivor; and
                            (ii) if applicable, requires home and 
                        community-based services provided under such 
                        DRM assistance in accordance with subsection 
                        (d)(3).
                    (C) No requirement for documentation evidencing the 
                basis on which the applicant qualifies to be a DRM-
                eligible Katrina Survivor or, if applicable, requires 
                home and community-based services.
                    (D) Issuance of a DRM assistance eligibility card 
                to an applicant who completes such application, 
                including the self-attestation required under 
                subparagraph (B). Such card shall be valid as long as 
                the DRM coverage period is in effect and shall be 
                accompanied by notice of the termination date for the 
                DRM coverage period and, if applicable, notice that 
                such termination date may be extended. If the President 
                extends the DRM coverage period, the State shall notify 
                DRM-eligible Katrina Survivors enrolled in DRM 
                assistance of the new termination date for the DRM 
                coverage period.
                    (E) If an applicant completes the application and 
                presents it to a provider or facility participating in 
                the State Medicaid plan that is qualified to make 
                presumptive eligibility determinations under such plan 
                (which at a minimum shall consist of facilities 
                identified in section 1902(a)(55) of the Social 
                Security Act (42 U.S.C. 1396a(a)(55)) and it appears to 
                the provider that the applicant is a DRM-eligible 
                Katrina Survivor based on the information in the 
                application, the applicant will be deemed to be a DRM-
                eligible Katrina Survivor eligible for DRM assistance 
                in accordance with this section, subject to subsection 
                (g).
                    (F) Continuous eligibility, without the need for 
                any re-determination of eligibility, for the duration 
                of the DRM coverage period.
            (2) No continuation of drm assistance.--
                    (A) In general.--Except as provided in 
                subparagraphs (B) and (C), no DRM assistance shall be 
                provided after the end of the DRM coverage period.
                    (B) Presumptive eligibility.--In the case of any 
                DRM-eligible Katrina Survivor who is receiving DRM 
                assistance from a State in accordance with this section 
                and who, as of the end of the DRM coverage period, has 
                an application pending for medical assistance under the 
                State Medicaid plan for periods beginning after the end 
                of such period, the State shall provide such Survivor 
                with a period of presumptive eligibility for medical 
                assistance under the State Medicaid plan (not to exceed 
                60 days) until a determination with respect to the 
                Survivor's application has been made.
                    (C) Pregnant women.--In the case of a DRM-eligible 
                Katrina Survivor who is receiving DRM assistance from a 
                State in accordance with this section and whose 
                pregnancy ended during the 60-day period prior to the 
                end of the DRM coverage period, or who is pregnant as 
                of the end of such period, such Survivor shall continue 
                to be eligible for DRM assistance after the end of the 
                DRM coverage period, including (but not limited to) for 
                all pregnancy-related and postpartum medical assistance 
                available under the State Medicaid plan, through the 
                end of the month in which the 60-day period (beginning 
                on the last day of her pregnancy) ends.
            (3) Treatment of katrina survivors provided assistance 
        prior to date of enactment.--Any Katrina Survivor who is 
        provided medical assistance under a State Medicaid plan in 
        accordance with guidance from the Secretary during the period 
        that begins on August 28, 2005, and ends on the date of 
        enactment of this Act shall be treated as a DRM-eligible 
        Katrina Survivor, without the need to file an additional 
        application, for purposes of eligibility for DRM assistance 
        under this section.
    (d) Scope of Coverage.--
            (1) Categorically needy benefits.--The State shall treat a 
        DRM-eligible Katrina Survivor as an individual eligible for 
        medical assistance under the State plan under title XIX of the 
        Social Security Act on the basis of section 1902(a)(10)(A)(i) 
        of the Social Security Act (42 U.S.C. 1396a(a)(10)(A)(i)), with 
        coverage for such assistance retroactive to items and services 
        furnished on or after August 28, 2005 (or in the case of 
        applications for DRM assistance submitted after January 1 2006, 
        the first day of the 5th month preceding the date on which such 
        application is submitted).
            (2) Extended mental health and care coordination 
        benefits.--The State may provide, without regard to any 
        restrictions on amount, duration, and scope, comparability, or 
        restrictions otherwise applicable under the State medicaid plan 
        (other than restrictions applicable under such plan with 
        respect to services provided in an institution for mental 
        diseases), to DRM-eligible Katrina Survivors extended mental 
        health and care coordination benefits which may include the 
        following:
                    (A) Screening, assessment, and diagnostic services 
                (including specialized assessments for individuals with 
                cognitive impairments).
                    (B) Coverage for a full range of mental health 
                medications at the dosages and frequencies prescribed 
                by health professionals for depression, post-traumatic 
                stress disorder, and other mental disorders.
                    (C) Treatment of alcohol and substance abuse 
                determined to result from circumstances related to 
                Hurricane Katrina.
                    (D) Psychotherapy, rehabilitation and other 
                treatments administered by psychiatrists, 
                psychologists, or social workers for conditions 
                exacerbated by, or resulting from, Hurricane Katrina.
                    (E) In-patient mental health care.
                    (F) Family counseling for families where a member 
                of the immediate family is a Katrina Survivor or first 
                responder to Hurricane Katrina or includes an 
                individual who has died as a result of Hurricane 
                Katrina.
                    (G) In connection with the provision of health and 
                long-term care services, arranging for, (and when 
                necessary, enrollment in waiver programs or other 
                specialized programs), and coordination related to, 
                primary and specialty medical care, which may include 
                personal care services, durable medical equipment and 
                supplies, assistive technology, and transportation.
            (3) Home and community-based services.--
                    (A) In general.--In the case of a State with a 
                waiver to provide home and community-based services 
                granted under section 1115 of the Social Security Act 
                or under subsection (c) or (d) of section 1915 of such 
                Act, the State may provide such services to DRM-
                eligible Katrina Survivors who self-attest in 
                accordance with subsection (c)(1)(B)(ii) that they 
                require immediate home and community-based services 
                that are available under such waiver without regard to 
                whether the Survivors would require the level of care 
                provided in a hospital, nursing facility, or 
                intermediate care facility for the mentally retarded, 
                including to DRM-eligible Katrina Survivors who are 
                individuals described in subparagraph (B).
                    (B) Individuals described.--Individuals described 
                in this subparagraph are individuals who--
                            (i) on any day during the week preceding 
                        August 28, 2005--
                                    (I) had been receiving home and 
                                community-based services under a waiver 
                                described in subparagraph (A) in a 
                                direct impact parish or county;
                                    (II) had been receiving support 
                                services from a primary family 
                                caregiver who, as a result of Hurricane 
                                Katrina, is no longer available to 
                                provide services; or
                                    (III) had been receiving personal 
                                care, home health, or rehabilitative 
                                services under the State Medicaid plan 
                                or under a waiver granted under section 
                                1915 or 1115 of the Social Security 
                                Act; or
                            (ii) are disabled (as determined under the 
                        State Medicaid plan).
                    (C) Waiver of restrictions.--The Secretary shall 
                waive with respect to the provision of home and 
                community-based services under this paragraph any 
                limitations on--
                            (i) the number of individuals who shall 
                        receive home or community-based services under 
                        a waiver described in subparagraph (A);
                            (ii) budget neutrality requirements 
                        applicable to such waiver; and
                            (iii) targeted populations eligible for 
                        services under such waiver.
                The Secretary may waive other restrictions applicable 
                under such a waiver, that would prevent a State from 
                providing home and community-based services in 
                accordance with this paragraph.
            (4) Children born to pregnant women.--In the case of a 
        child born to a DRM-eligible Katrina Survivor who is provided 
        DRM assistance during the DRM coverage period, such child shall 
        be treated as having been born to a pregnant woman eligible for 
        medical assistance under the State Medicaid plan and shall be 
        eligible for medical assistance under such plan in accordance 
        with section 1902(e)(4) of the Social Security Act (42 U.S.C. 
        1396a(e)(4)). The Federal medical assistance percentage 
        applicable to the State Medicaid plan shall apply to medical 
        assistance provided to a child under such plan in accordance 
        with the preceding sentence.
    (e) Termination of Coverage; Assistance With Applying for Regular 
Medicaid Coverage.--
            (1) Notice of expected termination of drm coverage 
        period.--A State shall provide DRM-eligible Katrina Survivors 
        who are receiving DRM assistance from the State in accordance 
        with this section, as of the beginning of the 4th month (and, 
        if applicable, 9th month) of the DRM coverage period with--
                    (A) notice of the expected termination date for DRM 
                assistance for such period;
                    (B) information regarding eligibility for medical 
                assistance under the State's eligibility rules 
                otherwise applicable under the State medicaid plan; and
                    (C) an application for such assistance and 
                information regarding where to obtain assistance with 
                completing such application in accordance with 
                paragraph (2).
            (2) Application assistance.--A State shall provide DRM-
        eligible Katrina Survivors who are receiving DRM assistance 
        from the State in accordance with this section with assistance 
        in applying for medical assistance under the State medicaid 
        plan for periods beginning after the end of the DRM coverage 
        period, at State Medicaid offices and at locations easily 
        accessible to such Survivors.
            (3) State reports.--A State providing DRM assistance in 
        accordance with this section shall submit to the Secretary the 
        following reports:
                    (A) Termination and transition assistance to 
                regular medicaid coverage for drm-eligible katrina 
                survivors eligible for such assistance.--A report 
                detailing how the State intends to satisfy the 
                requirements of paragraphs (1) and (2).
                    (B) Enrollment.--Reports regarding--
                            (i) the number of Katrina Survivors who are 
                        determined to be DRM-eligible Katrina 
                        Survivors; and
                            (ii) the number of DRM-eligible Katrina 
                        Survivors who are determined to be eligible 
                        for, and enrolled in, the State Medicaid plan.
            (4) Secretarial oversight.--The Secretary of Health and 
        Human Services shall ensure that a State is complying with the 
        requirements of paragraphs (1) and (2) and that applications 
        for medical assistance under the State Medicaid plan from DRM-
        eligible Katrina Survivors for periods beginning after the end 
        of the DRM coverage period are processed in a timely and 
        appropriate manner.
            (5) No private right of action against a state for failure 
        to provide notice.--No private right of action shall be brought 
        against a State for failure to provide the notices required 
        under paragraph (1) or subsection (c)(1) so long as the State 
        makes a good faith effort to provide such notices.
    (f) 100 Percent Federal Matching Payments.--
            (1) In general.--Notwithstanding section 1905(b) of the 
        Social Security Act (42 U.S.C. 1396d(b), the Federal medical 
        assistance percentage or the Federal matching rate otherwise 
        applied under section 1903(a) of such Act (42 U.S.C. 1396b(a)) 
        shall be 100 percent for--
                    (A) providing DRM assistance to DRM-eligible 
                Katrina Survivors during the DRM coverage period in 
                accordance with this section;
                    (B) costs directly attributable to administrative 
                activities related to the provision of such DRM 
                assistance, including costs attributable to obtaining 
                recoveries under subsection (h);
                    (C) costs directly attributable to providing 
                application assistance in accordance with subsection 
                (e)(2); and
                    (D) DRM assistance provided in accordance with 
                subparagraph (B) or (C) of subsection (c)(2) after the 
                end of the DRM coverage period.
            (2) Disregard of payments.--Payments provided to a State in 
        accordance with this subsection shall be disregarded for 
        purposes of applying subsections (f) and (g) of section 1108 of 
        the Social Security Act (42 U.S.C. 1308).
    (g) Verification of Status as a Katrina Survivor.--
            (1) In general.--The State shall make a good faith effort 
        to verify the status of an individual who is enrolled in the 
        State Medicaid plan as a DRM-eligible Katrina Survivor under 
        the provisions of this section. Such effort shall not delay the 
        determination of the eligibility of the Survivor for DRM 
        assistance under this section.
            (2) Evidence of verification.--A State may satisfy the 
        verification requirement under subparagraph (A) with respect to 
        an individual by showing that the State providing DRM 
        assistance obtained information from the Social Security 
        Administration, the Internal Revenue Service, or the State 
        Medicaid Agency for the State from which individual is from (if 
        the individual was not a resident of such State on any day 
        during the week preceding August 28, 2005).
    (h) Penalty for Fraudulent Applications.--
            (1) Individual liable for costs.--If a State, as the result 
        of verification activities conducted under subsection (g) or 
        otherwise, determines after a fair hearing that an individual 
        has knowingly made a false self-attestation described in 
        subsection (c)(1)(B), the State may, subject to paragraph (2), 
        seek recovery from the individual for the full amount of the 
        cost of DRM assistance provided to the individual under this 
        section.
            (2) Exception.--The Secretary shall exempt a State from 
        seeking recovery under paragraph (1) if the Secretary 
        determines that it would not be cost-effective for the State to 
        do so.
            (3) Reimbursement to the federal government.--Any amounts 
        recovered by a State in accordance with this subsection shall 
        be returned to the Federal government.
    (i) Exemption From Error Rate Penalties.--All payments attributable 
to providing DRM assistance in accordance with this section shall be 
disregarded for purposes of section 1903(u) of the Social Security Act 
(42 U.S.C. 1396b(u)).
    (j) Provider Payment Rates.--In the case of any DRM assistance 
provided in accordance with this section to a DRM-eligible Katrina 
Survivor that is covered under the State Medicaid plan (as applied 
without regard to this section) the State shall pay a provider of such 
assistance the same payment rate as the State would otherwise pay for 
the assistance if the assistance were provided under the State Medicaid 
plan (or, if no such payment rate applies under the State Medicaid 
plan, the usual and customary prevailing rate for the item or service 
for the community in which it is provided).
    (k) Application to Individuals Eligible for Medical Assistance.--
Nothing in this section shall be construed as affecting any rights 
accorded to an individual who is a recipient of medical assistance 
under a State Medicaid plan who is determined to be a DRM-eligible 
Katrina Survivor but the provision of DRM assistance to such individual 
shall be limited to the provision of such assistance in accordance with 
this section.
    (l) Definitions.--
            (1) DRM coverage period.--
                    (A) In general.--The term ``DRM coverage period'' 
                means the period beginning on August 28, 2005, and, 
                subject to subparagraph (B), ending on the date that is 
                12 months after the date of enactment of this Act.
                    (B) Presidential authority to extend drm coverage 
                period.--
                            (i) In general.--The President may extend 
                        the DRM coverage period for an additional 12 
                        months. Any reference to the term ``DRM 
                        coverage period'' in this title shall include 
                        any extension under this clause.
                            (ii) Notice to congress and states.--The 
                        President shall notify the majority and 
                        minority leaders of the Senate, the Speaker of 
                        the House of Representatives, the minority 
                        leader of the House of Representatives, the 
                        Chairs and Ranking Members of the Committee on 
                        Finance of the Senate and the Committees on 
                        Energy and Commerce and Ways and Means of the 
                        House of Representatives, and the States at 
                        least 30 days prior to--
                                    (I) extending the DRM coverage 
                                period; or
                                    (II) if the President determines 
                                not to extend such period, the ending 
                                date described in subparagraph (A).
            (2) Poverty line.--The term ``poverty line'' has the 
        meaning given that term in section 2110(c)(5) of the Social 
        Security Act (42 U.S.C. 1397jj(c)(5)).
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
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