SEC. 1756. TERMINATION OF PROVIDER PARTICIPATION UNDER MEDICAID AND CHIP IF TERMINATED UNDER MEDICARE OR OTHER STATE PLAN OR CHILD HEALTH PLAN.

[a] State Plan Requirement- Section- 1902[a][39] of the Social Security Act [42 U.S.C. 42 U.S.C. 1396a[a]] is amended by inserting after '1128A,' the following: 'terminate the participation of any individual or entity in such program if [subject to such exceptions are are permitted with respect to exclusion under sections 1128[b][3][C] and 1128[d][3][B]] participation of such individual or entity is terminated under title XVIII, any other State plan under this title, or any child health plan under title XXI,'.

[b] Application to CHIP- Section- 2107[e][1][A] of such Act [42 U.S.C. 1397gg[e][1][A]] is amended by inserting before the period at the end the following: 'and section 1902[a][39] [relating to exclusion and termination of participation]'.

[c] Effective Date-

[1] Except as provided in paragraph [2], the amendments made by this section shall apply to services furnished on or after JJanuary 1, 2011, without regard to whether or not final regulations to carry out such amendments have been promulgated by such date.

[2] In the case of a State plan for medical assistance under title XIX of the Social Security Act or a child health plan under title XXI of such Act which the Secretary of Health and Human Services determines requires State legislation [other than legislation appropriating funds] in order for the plan to meet the additional requirement imposed by the amendments made by this section, the State plan or child health plan shall not be regarded as failing to comply with the requirements of such title solely on the basis of its failure to meet this additional requirement before the first day of the first calendar quarter beginning after the close of the first regular session of the State legislature that begins after the date of the enactment of this Act. For purposes of the previous sentence, in the case of a State that has a 2-year legislative session, each year of such session shall be deemed to be a separate regular session of the State legislature.