SEC. 1751. HEALTH-CARE ACQUIRED CONDITIONS.

[a] Medicaid Non-Payment for Certain Health Care-Acquired Conditions- Section- 1903[i] of the Social Security Act [42 U.S.C. 1396b[i]] is amended--

[1] by striking 'or' at the end of paragraph [23];

[2] by striking the period at the end of paragraph [24] and inserting '; or'; and

[3] by inserting after paragraph [24] the following new paragraph:

'[25] with respect to amounts expended for services related to the presence of a condition that could be identified by a secondary diagnostic code described in section 1886[d][4][D][iv] and for any health care acquired condition determined as a non-covered service under title XVIII.'.

[b] Application to CHIP- Section- 2107[e][1][G] of such Act [42 U.S.C. 1397gg[e][1][G]] is amended by striking 'and [17]' and inserting '[17], and [25]'.

[c] Permission To Include Additional Health Care-Acquired Conditions- Nothing in this section shall prevent a State from including additional health care-acquired conditions for non-payment in its Medicaid program under title XIX of the Social Security Act.

[d] Effective Date- The amendments made by this section shall apply to discharges occurring on or after January 1, 2010.