PAYMENT OF PART B PREMIUMS.

SEC. 4732. PAYMENT OF PART B PREMIUMS. (a) Eligibility.—Section 1902(a)(10)(E) (42 U.S.C. 1396a(a)(10)(E)) is amended— (1) by striking “and” at the end of clause (ii); and (2) by inserting after clause (iii) the following: “(iv) subject to sections 1933 and 1905(p)(4), for making medical assistance available (but only for premiums payable with respect to months during the period beginning with January 1998, and ending with December 2002)— “(I) for medicare cost-sharing described in section 1905(p)(3)(A)(ii) for individuals who would be qualified medicare beneficiaries described in section 1905(p)(1) but for the fact that their income exceeds the income level established by the State under section 1905(p)(2) and is at least 120 percent, but less than 135 percent, of the official poverty line (referred to in such section) for a family of the size involved and who are not otherwise eligible for medical assistance under the State plan, and “(II) for the portion of medicare cost-sharing described in section 1905(p)(3)(A)(ii) that is attributable to the operation of the amendments made by (and subsection (e)(3) of) section 4611 of the Balanced Budget Act of 1997 for individuals who would be described in subclause (I) if ‘135 percent’ and ‘175 percent’ were substituted for ‘120 percent’ and ‘135 percent’ respectively; and”. (b) Conforming Amendment.—Section 1905(b) (42 U.S.C. 1396d(b)) is amended by striking “The term” and inserting “Subject to section 1933(d), the term”. (c) Terms and Conditions of Coverage.—Title XIX (42 U.S.C. 1395 et seq.), as amended by section 4701(a), is amended by redesignating section 1933 as section 1934 and by inserting after section 1932 the following new section: “state coverage of medicare cost-sharing for additional low-income medicare beneficiaries “Sec. 1933. (a) In General.—A State plan under this title shall provide, under section 1902(a)(10)(E)(iv) and subject to the succeeding provisions of this section and through a plan amendment, for medical assistance for payment of the cost of medicare 111 STAT. 521cost-sharing described in such section on behalf of all individuals described in such section (in this section referred to as ‘qualifying individuals’) who are selected to receive such assistance under subsection (b). “(b) Selection of Qualifying Individuals.—A State shall select qualifying individuals, and provide such individuals with assistance, under this section consistent with the following: “(1) All qualifying individuals may apply.—The State shall permit all qualifying individuals to apply for assistance during a calendar year. “(2) Selection on first-come, first-served basis.— “(A) In general.—For each calendar year (beginning with 1998), from (and to the extent of) the amount of the allocation under subsection (c) for the State for the fiscal year ending in such calendar year, the State shall select qualifying individuals who apply for the assistance in the order in which they apply. “(B) Carryover.—For calendar years after 1998, the State shall give preference to individuals who were provided such assistance (or other assistance described in section 1902(a)(10)(E)) in the last month of the previous year and who continue to be (or become) qualifying individuals. “(3) Limit on number of individuals based on allocation.—The State shall limit the number of qualifying individuals selected with respect to assistance in a calendar year so that the aggregate amount of such assistance provided to such individuals in such year is estimated to be equal to (but not exceed) the State’s allocation under subsection (c) for the fiscal year ending in such calendar year. “(4) Receipt of assistance during duration of year.—If a qualifying individual is selected to receive assistance under this section for a month in year, the individual is entitled to receive such assistance for the remainder of the year if the individual continues to be a qualifying individual. The fact that an individual is selected to receive assistance under this section at any time during a year does not entitle the individual to continued assistance for any succeeding year. “(c) Allocation.— “(1) Total allocation.—The total amount available for allocation under this section for— “(A) fiscal year 1998 is $200,000,000; “(B) fiscal year 1999 is $250,000,000; “(C) fiscal year 2000 is $300,000,000; “(D) fiscal year 2001 is $350,000,000; and “(E) fiscal year 2002 is $400,000,000. “(2) Allocation to states.—The Secretary shall provide for the allocation of the total amount described in paragraph (1) for a fiscal year, among the States that executed a plan amendment in accordance with subsection (a), based upon the Secretary’s estimate of the ratio of— “(A) an amount equal to the sum of— “(i) twice the total number of individuals described in section 1902(a)(10)(E)(iv)(I) in the State, and “(ii) the total number of individuals described in section 1902(a)(10)(E)(iv)(II) in the State; to “(B) the sum of the amounts computed under subparagraph (A) for all eligible States.111 STAT. 522 “(d) Applicable FMAP.—With respect to assistance described in section 1902(a)(10)(E)(iv) furnished in a State for calendar quarters in a calendar year — “(1) to the extent that such assistance does not exceed the State’s allocation under subsection (c) for the fiscal year ending in the calendar year, the Federal medical assistance percentage shall be equal to 100 percent; and “(2) to the extent that such assistance exceeds such allocation, the Federal medical assistance percentage is 0 percent. “(e) Limitation on Entitlement.—Except as specifically provided under this section, nothing in this title shall be construed as establishing any entitlement of individuals described in section 1902(a)(10)(E)(iv) to assistance described in such section. “(f) Coverage of Costs Through Part B of the Medicare Program.—For each fiscal year, the Secretary shall provide for the transfer from the Federal Supplementary Medical Insurance Trust Fund under section 1841 to the appropriate account in the Treasury that provides for payments under section 1903(a) with respect to medical assistance provided under this section, of an amount equivalent to the total of the amount of payments made under such section that is attributable to this section and such transfer shall be treated as an expenditure from such Trust Fund for purposes of section 1839.”.