MEDICAID SPENDDOWN OPTION.

SEC. 4723. MEDICAID SPENDDOWN OPTION. (a) In General.—Section 1903(f)(2) (42 U.S.C. 1396b(f)(2)) is amended by— (1) inserting “(A)” after “(2)”; and (2) by adding before the period at the end the following: “or, (B) notwithstanding section 1916 at State option, an amount paid by such family, at the family’s option, to the State, provided that the amount, when combined with costs incurred in prior months, is sufficient when excluded from the family’s income to reduce such family’s income below the applicable income limitation described in paragraph (1). The amount of State expenditures for which medical assistance is available under subsection (a)(D will be reduced by amounts paid to the State pursuant to this subparagraph.” (b) Conforming Amendment.—Section 1902(a)(17) (42 U.S.C. 1396a(a)(17)) is amended by inserting after “insurance premiums” “, payments made to the State under section 19O3(f)(2)(B), .