STATE DEMONSTRATION PROJECTS.

SEC. 4115. STATE DEMONSTRATION PROJECTS. (a) Extension of Arizona Health Care Demonstration Project.— (1) Notwithstanding any limitations contained in section 1115 of the Social Security Act, but subject to paragraphs (2) and (3) of this subsection, the Secretary of Health and Human Services (in this subsection referred to as the “Secretary”) upon application shall renew until September 30, 1989, approval of demonstration project number 11-P-98239/9–05 (“Arizona Health Care Cost Containment System—AHCCCS—A statewide approach to cost effective health care financing”), including all waivers granted by the Secretary under such section 1115 as of September 30, 1987. (2) The Secretary’s renewed approval of the project under paragraph (1) shall— (A) subject to paragraph (3) be on the same terms and conditions that existed between the applicant and the Secretary as of September 30, 1987; and (B) remain in effect through September 30, 1989, unless the Secretary finds that the applicant no longer complies with such terms and conditions. (3) Nothing in this subsection shall be construed to prohibit or require the Secretary from granting additional waivers to the applicant— (A) for coverage of additional optional groups, and (B) for coverage of long-term care and other services which were not covered as of September 30, 1987. (b) New York State Pilot Program for Prenatal, Maternity, and Newborn Care.— (1) Upon application by the State of New York and approval by the Secretary of Health and Human Services (in this subsection referred to as the “Secretary”), the State of New York (in this subsection referred to as the “State”) may conduct a demonstration project in accordance with this subsection for the purpose of testing its Prenatal/Maternity/Newborn Care Pilot Program (in this subsection referred to as the “Program”), as the Program is set forth in the Prenatal Care Act of 1987 (enacted by the State in February 1987), as an alternative to existing Federal programs. (2) Under the demonstration project conducted under this subsection— (A) any individual who receives benefits under the Program shall not receive any of such benefits under the plan of the State under title XIX of the Social Security Act; and (B) the Secretary shall make payments to the State with respect to individuals receiving benefits under the Program in the same amounts as would be payable for such benefits under title XIX of the Social Security Act if such individ-101 STAT. 1330–154uals were receiving such benefits under such title (as determined by the Secretary). (3) The Secretary may (with respect to the demonstration project under this subsection) waive compliance with any requirement contained in section 1902(a)(1), 1902(a)(10)(B), 1902(a)(17)(D), 1902(a)(23), 1902(a)(30), or 1903(f) of the Social Security Act which (if applied) would prevent the State from carrying out the project, effectively achieving its purpose, or receiving payments in accordance with paragraph (2)(B). (4) As a condition of approval of the demonstration project under this subsection, the State shall provide assurances satisfactory to the Secretary that— (A) the State will continue to make benefits available under title XIX of the Social Security Act to all pregnant women entitled to receive benefits under such title to the extent such benefits are not provided under the Program; and (B) the State has in effect a quality assurance mechanism to ensure the quality and accessibility of the services furnished under the program. (5) (A) The demonstration project under this subsection shall be conducted for a period not to exceed three years. (B) The Secretary shall conduct an evaluation of the demonstration project under this subsection and shall report the results of such evaluation to the Congress not later than one year after completion of the project. (c) Waivers for Family Independence Program.— Upon approval of the demonstration project relating to the Family Independence Program in the State of Washington and with respect to such project, the Secretary of Health and Human Services shall waive compliance with any requirements of sections 1902(a)(1), 1916, and 1924 of the Social Security Act, but only to the extent necessary to enable the State to carry out the project as enacted by the State of Washington in May 1987.