SEC. 1702. REQUIREMENTS AND SPECIAL RULES FOR CERTAIN MEDICAID ELIGIBLE INDIVIDUALS.

[a] In General- Title XIX of the Social Security Act is amended by adding at the end the following new section:

'REQUIREMENTS AND SPECIAL RULES FOR CERTAIN MEDICAID ELIGIBLE INDIVIDUALS

'Sec. 1943. [a] Coordination With NHI Exchange Through Memorandum of Understanding-

'[1] IN GENERAL- The State shall enter into a Medicaid memorandum of understanding described in section 204[e][4] of the America's Affordable Health Choices Act of 2009 with the Health Choices Commissioner, acting in consultation with the Secretary, with respect to coordinating the implementation of the provisions of division A of such Act with the State plan under this title in order to ensure the enrollment of Medicaid eligible individuals in acceptable coverage. Nothing in this section shall be construed as permitting such memorandum to modify or vitiate any requirement of a State plan under this title.

'[2] ENROLLMENT OF EXCHANGE-REFERRED INDIVIDUALS-

'[A] NON-TRADITIONAL INDIVIDUALS- Pursuant to such memorandum the State shall accept without further determination the enrollment under this title of an individual determined by the Commissioner to be a non-traditional Medicaid eligible individual. The State shall not do any redeterminations of eligibility for such individuals unless the periodicity of such redeterminations is consistent with the periodicity for redeterminations by the Commissioner of eligibility for affordability credits under subtitle C of title II of division A of the America's Affordable Health Choices Act of 2009, as specified under such memorandum.

'[B] TRADITIONAL INDIVIDUALS-

'[i] REGULAR ENROLLMENT OPTION- Pursuant to such memorandum, insofar as the memorandum has selected the option described in section 205[e][3][A] of the America's Affordable Health Choices Act of 2009, the State shall accept without further determination the enrollment under this title of an individual determined by the Commissioner to be a traditional Medicaid eligible individual. The State may do redeterminations of eligibility of such individual consistent with such section and the memorandum.

'[ii] PRESUMPTIVE ELIGIBILITY OPTION- Pursuant to such memorandum, insofar as the memorandum has selected the option described in section 205[e][3][B] of the America's Affordable Health Choices Act of 2009, the State shall provide for making medical assistance available during the presumptive eligibility period and shall, upon application of the individual for medical assistance under this title, promptly make a determination [and subsequent redeterminations] of eligibility in the same manner as if the individual had applied directly to the State for such assistance except that the State shall use the income-related information used by the Commissioner and provided to the State under the memorandum in making the presumptive eligibility determination to the maximum extent feasible.

'[3] DETERMINATIONS OF ELIGIBILITY FOR AFFORDABILITY CREDITS- If the Commissioner determines that a State Medicaid agency has the capacity to make determinations of eligibility for affordability credits under subtitle C of title II of division A of the America's Affordable Health Choices Act of 2009, under such memorandum--

'[A] the State Medicaid agency shall conduct such determinations for any Exchange-eligible individual who requests such a determination;

'[B] in the case that a State Medicaid agency determines that an Exchange-eligible individual is not eligible for affordability credits, the agency shall forward the information on the basis of which such determination was made to the Commissioner; and

'[C] the Commissioner shall reimburse the State Medicaid agency for the costs of conducting such determinations.

'[b] Treatment of Certain Newborns-

'[1] IN GENERAL- In the case of a child who is deemed under section 205[d][1] of the America's Affordable Health Choices Act of 2009 to be a non-traditional Medicaid eligible individual and enrolled under this title pursuant to such section, the State shall provide for a determination, by not later than the end of the period referred to in subparagraph [A] of such section, of the child's eligibility for medical assistance under this title.

'[2] EXTENDED TREATMENT AS TRADITIONAL MEDICAID ELIGIBLE INDIVIDUAL- In accordance with subparagraph [B] of section 205[d][1] of the America's Affordable Health Choices Act of 2009, in the case of a child described in subparagraph [A] of such section who at the end of the period referred to in such subparagraph is not otherwise covered under acceptable coverage, the child shall be deemed [until such time as the child obtains such coverage or the State otherwise makes a determination of the child's eligibility for medical assistance under its plan under this title pursuant to paragraph [1]] to be a traditional Medicaid eligible individual described in section 1902[l][1][B].

'[c] Definitions - In this section:

'[1] MEDICAID ELIGIBLE INDIVIDUALS- In this section, the terms 'Medicaid eligible individual', 'traditional Medicaid eligible individual', and 'non-traditional Medicaid eligible individual' have the meanings given such terms in section 205[e][5] of the America's Affordable Health Choices Act of 2009.

'[2] MEMORANDUM- The term 'memorandum' means a Medicaid memorandum of understanding under section 205[e][4] of the America's Affordable Health Choices Act of 2009.

'[3] Y1- The term 'Y1' has the meaning given such term in section 100[c] of the America's Affordable Health Choices Act of 2009.'.

[b] Conforming Amendments to Error Rate-

[1] Section- 1903[u][1][D] of the Social Security Act [42 U.S.C. 1396b[u][1][D]] is amended by adding at the end the following new clause:

'[vi] In determining the amount of erroneous excess payments, there shall not be included any erroneous payments made that are attributable to an error in an eligibility determination under subtitle C of title II of division A of the America's Affordable Health Choices Act of 2009.'.

[2] Section- 2105[c][11] of such Act [42 U.S.C. 1397ee[c][11]] is amended by adding at the end the following new sentence: 'Clause [vi] of section 1903[u][1][D] shall apply with respect to the application of such requirements under this title and title XIX.'.