STRENGTHENING MEDICAID THIRD-PARTY LIABILITY.

SEC. 202. STRENGTHENING MEDICAID THIRD-PARTY LIABILITY.(a) Payment for Prenatal and Preventive Pediatric Care and in Cases Involving Medical Support.—Section 1902(a)(25) of the Social Security Act (42 U.S.C. 1396a(a)(25)) is amended—(1) in subparagraph (E)(i), by inserting before the semicolon at the end the following: “, except that the State may, if the State determines doing so is cost-effective and will not adversely affect access to care, only make such payment if a third party so liable has not made payment within 90 days after the date the provider of such services has initially submitted a claim to such third party for payment for such services”; and(2) in subparagraph (F)(i), by striking “30 days after such services are furnished” and inserting “90 days after the date the provider of such services has initially submitted a claim to such third party for payment for such services, except that the State may make such payment within 30 days after such date if the State determines doing so is cost-effective and necessary to ensure access to care.”.(b) Recovery of Medicaid Expenditures From Beneficiary Liability Settlements.—(1) State plan requirements.—Section 1902(a)(25) of the Social Security Act (42 U.S.C. 1396a(a)(25)) is amended—(A) in subparagraph (B), by striking “to the extent of such legal liability”; and(B) in subparagraph (H), by striking “payment by any other party for such health care items or services” and inserting “any payments by such third party”.(2) Assignment of rights of payment.—Section 1912(a)(1)(A) of such Act (42 U.S.C. 1396k(a)(1)(A)) is amended by striking “payment for medical care from any third party” and inserting “any payment from a third party that has a legal liability to pay for care and services available under the plan”.(3) Liens.—Section 1917(a)(1)(A) of such Act (42 U.S.C. 1396p(a)(1)(A)) is amended to read as follows:“(A) pursuant to—“(i) the judgment of a court on account of benefits incorrectly paid on behalf of such individual, or“(ii) rights acquired by or assigned to the State in accordance with section 1902(a)(25)(H) or section 1912(a)(1)(A), or”.(c) Effective Date.—The amendments made by this section shall take effect on October 1, 2014.