SPECIAL RULES.

SEC. 4732. SPECIAL RULES. (a) Waiver of 75 Percent Rule for Public Entities.—Section 1903(m)(2)(D) (42 U.S.C. 1396b(m)(2)(D)) is amended by striking “(i) special circumstances warrant such modification or waiver, and (ii)”. (b) Extending Special Treatment to Medicare Competitive Medical Plans.— (1) 6-month minimum enrollment period option.—Section 1902(e)(2)(A) (42 U.S.C. 1396a(e)(2)(A)) is amended by inserting “or with an eligible organization with a contract under section 1876” after “1903(m)(2)(A)”. (2) Enrollment lock-in.— Section 1903(m)(2)(F)(i) (42 U.S.C. 1396b(m)(2)(F)(i)) is amended— (A) by striking “(G) or” and inserting “(G),”, and (B) adding at the end the following: “or with an eligible organization with a contract under section 1876 which meets the requirement of subparagraph (A)(ii), or”. (c) Automatic 1-Month Reenrollment for Short Periods of Ineligibility.—Section 1903(m)(2) is amended by adding at the end the following new subparagraph: “(H) In the case of an individual who— “(i) in a month is eligible for benefits under this title and enrolled with a health maintenance organization with a con-tract under this paragraph, 104 STAT. 1388–196 “(ii) in the next month (or in the next 2 months) is not eligible for such benefits, but “(iii) in the succeeding month is again eligible for such benefits, the State plan, subject to subparagraph (A)(vi), may enroll the individual for that succeeding month with the health maintenance organization described in clause (i) if the organization continues to have a contract under this paragraph with the State.”. (d) Elimination of Provisional Qualification fob HMOs.—Section 1903(m) is amended— (1) in paragraph (2)(A)(i), by striking “(or the State as authorized by paragraph (3))”, and (2) by striking paragraph (3). (e) Effective Date.—The amendments made by this section shall take effect on the date of the enactment of this Act.