II 110th CONGRESS 1st Session S. 2086 IN THE SENATE OF THE UNITED STATES September 24, 2007 Mr. Lott introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend title XXI of the Social Security Act to extend funding for 18 months for the State Children’s Health Insurance Program (SCHIP) and for other purposes.

1.

Short title

This Act may be cited as the SCHIP Extension Act of 2007.

2.

Extension of SCHIP

Section 2104 of the Social Security Act (42 U.S.C. 1397dd) is amended— (1)in subsection (a)— (A)by striking and at the end of paragraph (9); (B)by striking the period at the end of paragraph (10) and inserting a semicolon; and (C)by adding at the end the following new paragraph: (11)for fiscal year 2008, $5,000,000,000; and (12)for the first 6 months of fiscal year 2009, $2,500,000,000. ; and (2)in subsection (c)(4)(B), by striking and $40,000,000 for fiscal year 2007 and inserting $40,000,000 for each of fiscal years 2007 and 2008, and $20,000,000 for the first 6 months of fiscal year 2009.

3.

Additional allotments to address SCHIP funding shortfalls for fiscal year 2008 and first 6 months of fiscal year 2009

Section 2104 of the Social Security Act (42 U.S.C. 1397dd) is amended by adding at the end the following new subsection: (i)

Amounts To eliminate funding shortfalls for fiscal year 2008 and first 6 months of fiscal year 2009

(1)

In general

From the amounts appropriated under paragraph (4) for a shortfall period (as defined in paragraph (5)), the Secretary shall allot to each shortfall State described in paragraph (2) for such period such amount as the Secretary determines will eliminate the estimated shortfall described in paragraph (2) for the State for the shortfall period. (2)

Shortfall state described

For purposes of paragraph (1), a shortfall State described in this paragraph for a shortfall period is a State with a State child health plan approved under this title for which the Secretary estimates, on the basis of the most recent data available to the Secretary as of a date (specified by the Secretary) during the shortfall period, that the projected Federal expenditures under such plan for the State for the shortfall period will exceed the sum of— (A)the amount of the State's allotments for the two fiscal years ending before the shortfall period that will not be expended by the end of the more recent such fiscal year; (B)the amount of the State's allotment for the shortfall period; and (C)the amounts, if any, that are to be redistributed to the State during the shortfall period in accordance with subsection (f). (3)

Proration rule

If the amount available under paragraph (4) for a shortfall period is less than the total amount of the estimated shortfalls determined by the Secretary under paragraph (1) for such period, the amount of the estimated shortfall for each shortfall State determined under such paragraph for such period shall be reduced proportionally. (4)

Appropriation; allotment authority

For the purpose of providing additional allotments to shortfall States under this subsection— (A)

Fiscal year 2008

For the shortfall period specified in paragraph (5)(A), there is appropriated, out of any funds in the Treasury not otherwise appropriated, such sums as are necessary for such fiscal year, but not to exceed $1,500,000,000. (B)

First 6 months of fiscal year 2009

For the shortfall period specified in paragraph (5)(B), there is appropriated, out of any funds in the Treasury not otherwise appropriated, such sums as are necessary for such period, but not to exceed $1,100,000,000. (5)

Shortfall periods specified

For purposes of this subsection, each of the following is a shortfall period: (A)Fiscal year 2008. (B)The first 6 months of fiscal year 2009. .

4.

Option for qualifying States to receive the enhanced portion of the SCHIP matching rate for Medicaid coverage of certain children

Section 2105(g) of the Social Security Act (42 U.S.C. 1397ee(g)) is amended— (1)in paragraph (1)(A), by inserting subject to paragraph (4), after Notwithstanding any other provision of law,; and (2)by adding at the end the following new paragraph: (4)

Option for allotments

(A)

Payment of enhanced portion of matching rate for certain expenditures

In the case of expenditures described in subparagraph (B), a qualifying State (as defined in paragraph (2)) may elect to be paid from the State's allotment made under section 2104 for any fiscal year (beginning with fiscal year 2008) (insofar as the allotment is available to the State under subsections (e) and (i) of such section) an amount each quarter equal to the additional amount that would have been paid to the State under title XIX with respect to such expenditures if the enhanced FMAP (as determined under subsection (b)) had been substituted for the Federal medical assistance percentage (as defined in section 1905(b)). (B)

Expenditures described

For purposes of subparagraph (A), the expenditures described in this subparagraph are expenditures made after the date of the enactment of this paragraph and during the period in which funds are available to the qualifying State for use under subparagraph (A), for the provision of medical assistance to individuals residing in the State who are eligible for medical assistance under the State plan under title XIX or under a waiver of such plan and who have not attained age 19, and whose family income equals or exceeds 133 percent of the poverty line but does not exceed the Medicaid applicable income level. .