PREMIUM GRACE PERIOD.

SEC. 504. PREMIUM GRACE PERIOD.(a) In General.—Section 2103(e)(3) (42 U.S.C. 1397cc(e)(3)) is amended by adding at the end the following new subparagraph:“(C) Premium grace period.—The State child health plan—“(i) shall afford individuals enrolled under the plan a grace period of at least 30 days from the beginning of a new coverage period to make premium payments before the individual’s coverage under the plan may be terminated; and“(ii) shall provide to such an individual, not later than 7 days after the first day of such grace period, notice—“(I) that failure to make a premium payment within the grace period will result in termination of coverage under the State child health plan; and“(II) of the individual’s right to challenge the proposed termination pursuant to the applicable Federal regulations.For purposes of clause (i), the term ‘new coverage period’ means the month immediately following the last month for which the premium has been paid.”.(b) Effective Date.—The amendment made by subsection (a) shall apply to new coverage periods beginning on or after the date of the enactment of this Act.