II 112th CONGRESS 1st Session S. 868 IN THE SENATE OF THE UNITED STATES May 3, 2011 Mr. Hatch (for himself, Mr. Alexander, Mr. Barrasso, Mr. Burr, Mr. Coburn, Mr. Cornyn, Mr. Johanns, and Mr. Kyl) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To restore the longstanding partnership between the States and the Federal Government in managing the Medicaid program.

1.

Short title

This Act may be cited as the State Flexibility Act.

2.

Repeal of Medicaid and CHIP maintenance of effort requirements under ARRA and PPACA

(a)

Repeal of ARRA Medicaid MOE

Subsection (f) of section 5001 of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5) is amended by striking paragraph (1). (b)

Repeal of PPACA Medicaid MOE

Section 1902 of the Social Security Act (42 U.S.C. 1396a) is amended by striking subsection (gg). (c)

Repeal of PPACA CHIP MOE

Section 2105(d)(3) of the Social Security Act (42 U.S.C. 1397ee(d)(3)) is amended— (1)by striking subparagraph (A); (2)by redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively; and (3)in the paragraph heading, by striking Continuation of eligibility standards for children until October 1, 2019 and inserting Continuity of coverage. (d)

Conforming amendments

(1)Section 1902(a) of the Social Security Act (42 U.S.C. 1396a(a)) is amended by striking paragraph (74). (2)Effective January 1, 2014, the paragraph (14) of section 1902(e) added by section 2002(a) of Public Law 111–148 is amended by striking the third sentence of subparagraph (A). (e)

Effective date

Except as provided in subsection (d)(2), the amendments made by this section shall take effect on the date of the enactment of this Act.