Sec. 103. Increased Federal financial participation for maternity, labor, and delivery services furnished by eligible hospitals
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Section 1905 of the Social Security Act ( 42 U.S.C. 1396d ) is amended— in subsection (b), by striking and
(ii)and inserting (ii), and
(kk); and by adding at the end the following new subsection: Notwithstanding subsection (b), with respect to State expenditures for medical assistance for maternity, labor, and delivery services furnished by an eligible hospital (as such terms are defined in section 1902(uu)) in a fiscal quarter that begins on or after October 1, 2026— the Federal medical assistance percentage applicable to the enhanced payment rate amount of such expenditures (as determined for the State and quarter under paragraph (2)(A)) shall be equal to 100 percent; and subject to paragraph (3), the Federal medical assistance percentage applicable to the base payment rate amount of such expenditures (as determined for the State and quarter under paragraph (2)(B)) shall be equal to the enhanced FMAP determined for the State and quarter under section 2105(b). For purposes of paragraph (1)(A), the enhanced payment rate amount for a State and fiscal quarter is equal to the amount of State expenditures for medical assistance for maternity, labor, and delivery services furnished by an eligible hospital (as such terms are defined in section 1902(uu)) in such fiscal quarter that is attributable to the amount by which the minimum payment rate required under section 1902(a)(13)(D) (or, by application, section 1932(f)) exceeds the base payment rate applicable to such services, as determined for the State, quarter, and services under clause (ii). For purposes of clause (i), the base payment rate determined for a State, a fiscal quarter, and maternity, labor, and delivery services (as defined in section 1902(uu)) shall be equal to— the payment rate applicable to such services under the State plan (or under a waiver of such plan) as of January 1, 2025; increased by the percentage increase in the medical care component of the consumer price index for all urban consumers from January of 2025 to the month ending on the day before the 1st day of such fiscal quarter. For purposes of paragraph (1)(B), the base payment rate amount for a State and fiscal quarter is equal to— the total amount of State expenditures for medical assistance for maternity, labor, and delivery services furnished by an eligible hospital (as such terms are defined in section 1902(uu)) in such fiscal quarter; minus the enhanced payment rate amount determined for the State and fiscal quarter under subparagraph (A). Subparagraph
(B)of paragraph
(1)shall not apply in the case of State expenditures described in such subparagraph if the application of such subparagraph would result in a lower Federal medical assistance percentage for such expenditures than would otherwise apply without the application of such paragraph. Any payment made to a territory for medical assistance that is subject to the Federal medical assistance percentage specified in paragraph (1)(A) or the enhanced FMAP referred to in paragraph (1)(B) shall not be taken into account for purposes of applying payment limits under subsections
(f)and
(g)of section 1108. .
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Sec. 103
Increased Federal financial participation for maternity, labor, and delivery services furnished by eligible hospitals
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