SEC. 1722. MEDICAL HOME PILOT PROGRAM.

[a] In General- The Secretary of Health and Human Services shall establish under this section a medical home pilot program under which a State may apply to the Secretary for approval of a medical home pilot project described in subsection [b] [in this section referred to as a 'pilot project'] for the application of the medical home concept under title XIX of the Social Security Act. The pilot program shall operate for a period of up to 5 years.

[b] Pilot Project Described-

[1] IN GENERAL- A pilot project is a project that applies one or more of the medical home models described in section 1866E[a][3] of the Social Security Act [as inserted by section 1302[a]] or such other model as the Secretary may approve, to high need beneficiaries [including medically fragile children and high-risk pregnant women] who are eligible for medical assistance under title XIX of the Social Security Act. The Secretary shall provide for appropriate coordination of the pilot program under this section with the medical home pilot program under section 1866E of such Act.

[2] LIMITATION- A pilot project shall be for a duration of not more than 5 years.

[c] Additional Incentives- In the case of a pilot project, the Secretary may--

[1] waive the requirements of section 1902[a][1] of the Social Security Act [relating to statewideness] and section 1902[a][10][B] of such Act [relating to comparability]; and

[2] increase to up to 90 percent [for the first 2 years of the pilot program] or 75 percent [for the next 3 years] the matching percentage for administrative expenditures [such as those for community care workers].

[d] Medically Fragile Children- In the case of a model involving medically fragile children, the model shall ensure that the patient-centered medical home services received by each child, in addition to fulfilling the requirements under 1866E[b][1] of the Social Security Act, provide for continuous involvement and education of the parent or caregiver and for assistance to the child in obtaining necessary transitional care if a child's enrollment ceases for any reason.

[e] Evaluation; Report-

[1] EVALUATION- The Secretary, using the criteria described in section 1866E[g][1] of the Social Security Act [as inserted by section 1123], shall conduct an evaluation of the pilot program under this section.

[2] REPORT- Not later than 60 days after the date of completion of the evaluation under paragraph [1], the Secretary shall submit to Congress and make available to the public a report on the findings of the evaluation under such paragraph.

[f] Funding- The additional Federal financial participation resulting from the implementation of the pilot program under this section may not exceed in the aggregate $1,235,000,000 over the 5-year period of the program.