§ 1397ee.
(c)
Limitation on certain payments for certain expenditures
(2)
Limitation on expenditures not used for medicaid or health insurance assistance
(B)
Waiver authorized for cost-effective alternative
The limitation under subparagraph (A) on expenditures for items described in subsection (a)(1)(D) shall not apply to the extent that a State establishes to the satisfaction of the Secretary that—
(ii)
the cost of such coverage is not greater, on an average per child basis, than the cost of coverage that would otherwise be provided under
section 1397cc of this title; and
(iii)
such coverage is provided through the use of a community-based health delivery system, such as through contracts with health centers receiving funds under
section 254b of this title or with hospitals such as those that receive disproportionate share payment adjustments under section 1395ww(d)(5)(F) or 1396r–4 of this title.
(C)
Nonapplication to certain expenditures
The limitation under subparagraph (A) shall not apply with respect to the following expenditures:
(i)
Expenditures to increase outreach to, and the enrollment of, Indian children under this subchapter and subchapter XIX
(ii)
Expenditures to comply with citizenship or nationality verification requirements
(iii)
Expenditures for outreach to increase the enrollment of children under this subchapter and subchapter XIX through premium assistance subsidies
(iv)
Payment error rate measurement (PERM) expenditures
(3)
Waiver for purchase of family coverage
Payment may be made to a State under subsection (a)(1) for the purchase of family coverage under a group health plan or health insurance coverage that includes coverage of targeted low-income children only if the State establishes to the satisfaction of the Secretary that—
(A)
purchase of such coverage is cost-effective relative to—
(i)
the amount of expenditures under the State child health plan, including administrative expenditures, that the State would have made to provide comparable coverage of the targeted low-income child involved or the family involved (as applicable); or
(ii)
the aggregate amount of expenditures that the State would have made under the State child health plan, including administrative expenditures, for providing coverage under such plan for all such children or families; and
(B)
such coverage shall not be provided if it would otherwise substitute for health insurance coverage that would be provided to such children but for the purchase of family coverage.
(4)
Use of non-Federal funds for State matching requirement
(5)
Offset of receipts attributable to premiums and other cost-sharing
(6)
Prevention of duplicative payments
(B)
Other Federal governmental programs
(7)
Limitation on payment for abortions
(8)
Limitation on matching rate for expenditures for child health assistance provided to children whose effective family income exceeds 300 percent of the poverty line
(A)
FMAP applied to expenditures
(9)
Citizenship documentation requirements
(10)
State option to offer premium assistance
(B)
Qualified employer-sponsored coverage
(i)
In general
Subject to clause (ii), in this paragraph, the term “qualified employer-sponsored coverage” means a group health plan or health insurance coverage offered through an employer—
(I)
that qualifies as creditable coverage as a group health plan under section 2701(c)(1) of the Public Health Service Act; 3
(II)
for which the employer contribution toward any premium for such coverage is at least 40 percent; and
(III)
that is offered to all individuals in a manner that would be considered a nondiscriminatory eligibility classification for purposes of paragraph (3)(A)(ii) of section 105(h) of the Internal Revenue Code of 1986 (but determined without regard to clause (i) of subparagraph (B) of such paragraph).
(ii)
Exception
Such term does not include coverage consisting of—
(I)
benefits provided under a health flexible spending arrangement (as defined in section 106(c)(2) of the Internal Revenue Code of 1986); or
(II)
a high deductible health plan (as defined in section 223(c)(2) of such Code), without regard to whether the plan is purchased in conjunction with a health savings account (as defined under section 223(d) of such Code).
(C)
Premium assistance subsidy
(ii)
State payment option
(iv)
Treatment as child health assistance
(D)
Application of secondary payor rules
(E)
Requirement to provide supplemental coverage for benefits and cost-sharing protection provided under the State child health plan
(i)
In general
Notwithstanding
section 1397jj(b)(1)(C) of this title, the State shall provide for each targeted low-income child enrolled in qualified employer-sponsored coverage, supplemental coverage consisting of—
(I)
items or services that are not covered, or are only partially covered, under the qualified employer-sponsored coverage; and
(II)
cost-sharing protection consistent with
section 1397cc(e) of this title.
(ii)
Record keeping requirements
(F)
Application of waiting period imposed under the State
(G)
Opt-out permitted for any month
(H)
Application to parents
If a State provides child health assistance or health benefits coverage to parents of a targeted low-income child in accordance with
section 1397kk(b) of this title, the State may elect to offer a premium assistance subsidy to a parent of a targeted low-income child who is eligible for such a subsidy under this paragraph in the same manner as the State offers such a subsidy for the enrollment of the child in qualified employer-sponsored coverage, except that—
(i)
the amount of the premium assistance subsidy shall be increased to take into account the cost of the enrollment of the parent in the qualified employer-sponsored coverage or, at the option of the State if the State determines it cost-effective, the cost of the enrollment of the child’s family in such coverage; and
(ii)
any reference in this paragraph to a child is deemed to include a reference to the parent or, if applicable under clause (i), the family of the child.
(I)
Additional State option for providing premium assistance
(ii)
Access to choice of coverage
(iii)
Clarification of payment for administrative expenditures
(J)
No effect on premium assistance waiver programs
(K)
Notice of availability
If a State elects to provide premium assistance subsidies in accordance with this paragraph, the State shall—
(i)
include on any application or enrollment form for child health assistance a notice of the availability of premium assistance subsidies for the enrollment of targeted low-income children in qualified employer-sponsored coverage;
(ii)
provide, as part of the application and enrollment process under the State child health plan, information describing the availability of such subsidies and how to elect to obtain such a subsidy; and
(iii)
establish such other procedures as the State determines necessary to ensure that parents are fully informed of the choices for receiving child health assistance under the State child health plan or through the receipt of premium assistance subsidies.
(L)
Application to qualified employer-sponsored benchmark coverage
(M)
Coordination with medicaid
(12)
Temporary enhanced payment for coverage and administration of COVID–19 vaccines
([Aug. 14, 1935, ch. 531], title XXI, § 2105, as added [Pub. L. 105–33, title IV, § 4901(a)], Aug. 5, 1997, [111 Stat. 560]; amended [Pub. L. 105–100, title I, § 162(5)], (7), Nov. 19, 1997, [111 Stat. 2189], 2190; [Pub. L. 106–113, div. B, § 1000(a)(6) [title VII, § 705(b)]], Nov. 29, 1999, [113 Stat. 1536], 1501A–402; [Pub. L. 106–554, § 1(a)(6) [title VIII, § 802(a), (d)(4), (e)]], Dec. 21, 2000, [114 Stat. 2763], 2763A–580 to 2763A–582; [Pub. L. 108–74, § 1(b)], Aug. 15, 2003, [117 Stat. 895]; [Pub. L. 108–127, § 1], Nov. 17, 2003, [117 Stat. 1354]; [Pub. L. 109–171, title VI], §§ 6102(b), 6103(a), Feb. 8, 2006, [120 Stat. 131], 132; [Pub. L. 109–482, title II, § 201(b)], Jan. 15, 2007, [120 Stat. 3701]; [Pub. L. 110–92, § 136(d)], Sept. 29, 2007, [121 Stat. 995]; [Pub. L. 110–173, title II, § 201(b)(1)], Dec. 29, 2007