S 2586 ISCommentsClose CommentsPermalink

To provide States with fiscal relief through a temporary increase in the Federal medical assistance percentage and direct payments to States.CommentsClose CommentsPermalink

January 31, 2008

Mr. ROCKEFELLER introduced the following bill; which was read twice and referred to the Committee on FinanceCommentsClose CommentsPermalink

To provide States with fiscal relief through a temporary increase in the Federal medical assistance percentage and direct payments to States.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the `State Fiscal Relief Act of 2008'.CommentsClose CommentsPermalink

SEC. 2. TEMPORARY STATE FISCAL RELIEF.

(a) Temporary Increase of the Medicaid FMAP-CommentsClose CommentsPermalink





(1) PERMITTING MAINTENANCE OF FISCAL YEAR 2007 FMAP FOR LAST 3 CALENDAR QUARTERS OF FISCAL YEAR 2008- Subject to paragraph (5), if the FMAP determined without regard to this subsection for a State for fiscal year 2008 is less than the FMAP as so determined for fiscal year 2007, the FMAP for the State for fiscal year 2007 shall be substituted for the State's FMAP for the second, third, and fourth calendar quarters of fiscal year 2008, before the application of this subsection.CommentsClose CommentsPermalink





(2) PERMITTING MAINTENANCE OF FISCAL YEAR 2008 FMAP FOR FIRST 2 QUARTERS OF FISCAL YEAR 2009- Subject to paragraph (5), if the FMAP determined without regard to this subsection for a State for fiscal year 2009 is less than the FMAP as so determined for fiscal year 2008, the FMAP for the State for fiscal year 2008 shall be substituted for the State's FMAP for the first and second calendar quarters of fiscal year 2009, before the application of this subsection.CommentsClose CommentsPermalink





(3) GENERAL 1.225 PERCENTAGE POINTS INCREASE FOR LAST 3 CALENDAR QUARTERS OF FISCAL YEAR 2008 AND FIRST 2 CALENDAR QUARTERS OF FISCAL YEAR 2009- Subject to paragraphs (5), (6), and (7), for each State for the second, third, and fourth calendar quarters of fiscal year 2008 and for the first and second calendar quarters of fiscal year 2009, the FMAP (taking into account the application of paragraphs (1) and (2)) shall be increased by 1.225 percentage points.CommentsClose CommentsPermalink





(4) INCREASE IN CAP ON MEDICAID PAYMENTS TO TERRITORIES- Subject to paragraphs (6) and (7), with respect to the second, third, and fourth calendar quarters of fiscal year 2008 and the first and second calendar quarters of fiscal year 2009, the amounts otherwise determined for Puerto Rico, the Virgin Islands, Guam, the Northern Mariana Islands, and American Samoa under subsections (f) and (g) of section 1108 of the Social Security Act (42 U.S.C. 1308) shall each be increased by an amount equal to 2.45 percent of such amounts.CommentsClose CommentsPermalink





(5) SCOPE OF APPLICATION- The increases in the FMAP for a State under this subsection shall apply only for purposes of title XIX of the Social Security Act and shall not apply with respect to--CommentsClose CommentsPermalink





(A) disproportionate share hospital payments described in section 1923 of such Act (42 U.S.C. 1396r-4);CommentsClose CommentsPermalink





(B) payments under title IV or XXI of such Act (42 U.S.C. 601 et seq. and 1397aa et seq.); orCommentsClose CommentsPermalink





(C) any payments under XIX of such Act that are based on the enhanced FMAP described in section 2105(b) of such Act (42 U.S.C. 1397ee(b)).CommentsClose CommentsPermalink





(6) STATE ELIGIBILITY-CommentsClose CommentsPermalink





(A) IN GENERAL- Subject to subparagraph (B), a State is eligible for an increase in its FMAP under paragraph (3) or an increase in a cap amount under paragraph (4) only if the eligibility under its State plan under title XIX of the Social Security Act (including any waiver under such title or under section 1115 of such Act (42 U.S.C. 1315)) is no more restrictive than the eligibility under such plan (or waiver) as in effect on December 31, 2007.CommentsClose CommentsPermalink





(B) STATE REINSTATEMENT OF ELIGIBILITY PERMITTED- A State that has restricted eligibility under its State plan under title XIX of the Social Security Act (including any waiver under such title or under section 1115 of such Act (42 U.S.C. 1315)) after December 31, 2007 is eligible for an increase in its FMAP under paragraph (3) or an increase in a cap amount under paragraph (4) in the first calendar quarter (and subsequent calendar quarters) in which the State has reinstated eligibility that is no more restrictive than the eligibility under such plan (or waiver) as in effect on December 31, 2007.CommentsClose CommentsPermalink





(C) RULE OF CONSTRUCTION- Nothing in subparagraph (A) or (B) shall be construed as affecting a State's flexibility with respect to benefits offered under the State medicaid program under title XIX of the Social Security Act (42 U.S.C. 1396 et seq.) (including any waiver under such title or under section 1115 of such Act (42 U.S.C. 1315)).CommentsClose CommentsPermalink





(7) REQUIREMENT FOR CERTAIN STATES- In the case of a State that requires political subdivisions within the State to contribute toward the non-Federal share of expenditures under the State medicaid plan required under section 1902(a)(2) of the Social Security Act (42 U.S.C. 1396a(a)(2)), the State shall not require that such political subdivisions pay a greater percentage of the non-Federal share of such expenditures for the second, third, and fourth calendar quarters of fiscal year 2008 and the first and second calendar quarters of fiscal year 2009, than the percentage that was required by the State under such plan on December 31, 2007, prior to application of this subsection.CommentsClose CommentsPermalink





(8) DEFINITIONS- In this subsection:CommentsClose CommentsPermalink





(A) FMAP- The term `FMAP' means the Federal medical assistance percentage, as defined in section 1905(b) of the Social Security Act (42 U.S.C. 1396d(b)).CommentsClose CommentsPermalink





(B) STATE- The term `State' has the meaning given such term for purposes of title XIX of the Social Security Act (42 U.S.C. 1396 et seq.).CommentsClose CommentsPermalink





(9) REPEAL- Effective as of October 1, 2009, this subsection is repealed.CommentsClose CommentsPermalink





(b) Payments to States for Assistance With Providing Government Services- The Social Security Act (42 U.S.C. 301 et seq.) is amended by inserting after title V the following:CommentsClose CommentsPermalink

`TITLE VI--TEMPORARY STATE FISCAL RELIEF

`SEC. 601. TEMPORARY STATE FISCAL RELIEF.

`(a) Appropriation- There is authorized to be appropriated and is appropriated for making payments to States under this section--CommentsClose CommentsPermalink





`(1) $3,600,000,000 for fiscal year 2008; andCommentsClose CommentsPermalink





`(2) $2,400,000,000 for fiscal year 2009.CommentsClose CommentsPermalink





`(b) Payments-CommentsClose CommentsPermalink





`(1) FISCAL YEAR 2008- From the amount appropriated under subsection (a)(1) for fiscal year 2008, the Secretary of the Treasury shall, not later than the later of the date that is 45 days after the date of enactment of this Act or the date that a State provides the certification required by subsection (e) for fiscal year 2008, pay each State the amount determined for the State for fiscal year 2008 under subsection (c).CommentsClose CommentsPermalink





`(2) FISCAL YEAR 2009- From the amount appropriated under subsection (a)(2) for fiscal year 2009, the Secretary of the Treasury shall, not later than the later of October 1, 2008, or the date that a State provides the certification required by subsection (e) for fiscal year 2009, pay each State the amount determined for the State for fiscal year 2009 under subsection (c).CommentsClose CommentsPermalink





`(c) Payments Based on Population-CommentsClose CommentsPermalink





`(1) IN GENERAL- Subject to paragraph (2), the amount appropriated under subsection (a) for each of fiscal years 2008 and 2009 shall be used to pay each State an amount equal to the relative population proportion amount described in paragraph (3) for such fiscal year.CommentsClose CommentsPermalink





`(2) MINIMUM PAYMENT-CommentsClose CommentsPermalink





`(A) IN GENERAL- No State shall receive a payment under this section for a fiscal year that is less than--CommentsClose CommentsPermalink





`(i) in the case of 1 of the 50 States or the District of Columbia, 1/2 of 1 percent of the amount appropriated for such fiscal year under subsection (a); andCommentsClose CommentsPermalink





`(ii) in the case of the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands, or American Samoa, 1/10 of 1 percent of the amount appropriated for such fiscal year under subsection (a).CommentsClose CommentsPermalink





`(B) PRO RATA ADJUSTMENTS- The Secretary of the Treasury shall adjust on a pro rata basis the amount of the payments to States determined under this section without regard to this subparagraph to the extent necessary to comply with the requirements of subparagraph (A).CommentsClose CommentsPermalink





`(3) RELATIVE POPULATION PROPORTION AMOUNT- The relative population proportion amount described in this paragraph is the product of--CommentsClose CommentsPermalink





`(A) the amount described in subsection (a) for a fiscal year; andCommentsClose CommentsPermalink





`(B) the relative State population proportion (as defined in paragraph (4)).CommentsClose CommentsPermalink





`(4) RELATIVE STATE POPULATION PROPORTION DEFINED- For purposes of paragraph (3)(B), the term `relative State population proportion' means, with respect to a State, the amount equal to the quotient of--CommentsClose CommentsPermalink





`(A) the population of the State (as reported in the most recent decennial census); andCommentsClose CommentsPermalink





`(B) the total population of all States (as reported in the most recent decennial census).CommentsClose CommentsPermalink





`(d) Use of Payment-CommentsClose CommentsPermalink





`(1) IN GENERAL- Subject to paragraph (2), a State shall use the funds provided under a payment made under this section for a fiscal year to--CommentsClose CommentsPermalink





`(A) provide essential government services;CommentsClose CommentsPermalink





`(B) cover the costs to the State of complying with any Federal intergovernmental mandate (as defined in section 421(5) of the Congressional Budget Act of 1974) to the extent that the mandate applies to the State, and the Federal Government has not provided funds to cover the costs; orCommentsClose CommentsPermalink





`(C) compensate for a decline in Federal funding to the State.CommentsClose CommentsPermalink





`(2) LIMITATION- A State may only use funds provided under a payment made under this section for types of expenditures permitted under the most recently approved budget for the State.CommentsClose CommentsPermalink





`(e) Certification- In order to receive a payment under this section for a fiscal year, the State shall provide the Secretary of the Treasury with a certification that the State's proposed uses of the funds are consistent with subsection (d).CommentsClose CommentsPermalink





`(f) Definition of State- In this section, the term `State' means the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands, and American Samoa.CommentsClose CommentsPermalink





`(g) Repeal- Effective as of October 1, 2009, this title is repealed.'.CommentsClose CommentsPermalink