II 110th CONGRESS 1st Session S. 401 IN THE SENATE OF THE UNITED STATES January 25, 2007 Mr. Rockefeller (for himself, Ms. Snowe, Mr. Kennedy, Ms. Collins, Mr. Menendez, Mr. Reed, Ms. Mikulski, Mr. Durbin, Mr. Obama, Mr. Feingold, Mr. Kerry, Mr. Lautenberg, Mr. Whitehouse, Mr. Harkin, Mr. Cardin, Ms. Klobuchar, Mrs. McCaskill, and Mr. Kohl) 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 eliminate funding shortfalls for the State Children’s Health Insurance Program (SCHIP) for fiscal year 2007.

1.

Short title

This Act may be cited as the Keep Children Covered Act of 2007.

2.

Elimination of SCHIP funding shortfalls for fiscal year 2007

(a)

Elimination of remainder of funding shortfalls, tiered match, and other limitation on expenditures

Section 2104(h) of the Social Security Act (42 U.S.C. 1397dd(h)), as added by section 201(a) of the National Institutes of Health Reform Act of 2006 (Public Law 109–482), is amended— (1)in the heading for paragraph (2), by striking remainder of reduction and inserting part of; and (2)by striking paragraph (4) and inserting the following: (4)

Additional amounts to eliminate remainder of fiscal year 2007 funding shortfalls

(A)

In general

The Secretary shall allot to each remaining shortfall State described in subparagraph (B) such amount as the Secretary determines will eliminate the estimated shortfall described in such subparagraph for the State for fiscal year 2007. (B)

Remaining shortfall state described

For purposes of subparagraph (A), a remaining shortfall State 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 the date of enactment of this paragraph, that the projected federal expenditures under such plan for the State for fiscal year 2007 will exceed the sum of— (i)the amount of the State's allotments for each of fiscal years 2005 and 2006 that will not be expended by the end of fiscal year 2006; (ii)the amount of the State's allotment for fiscal year 2007; and (iii)the amounts, if any, that are to be redistributed to the State during fiscal year 2007 in accordance with paragraphs (1) and (2). (C)

Appropriation; allotment authority

For the purpose of providing additional allotments to remaining shortfall States under this paragraph there is appropriated, out of any funds in the Treasury not otherwise appropriated, such sums as are necessary for fiscal year 2007. . (b)

Conforming amendments

Section 2104(h) of such Act (42 U.S.C. 1397dd(h)) (as so added), is amended— (1)in paragraph (1)(B), by striking subject to paragraph (4)(B) and; (2)in paragraph (2)(B), by striking subject to paragraph (4)(B) and; (3)in paragraph (5)(A), by striking and (3) and inserting (3), and (4); and (4)in paragraph (6), by striking and (3) and inserting (3), and (4).