In 1996, Congress replaced AFDC, which had been held for more than 25 years to give beneficiaries enforceable rights to assistance, with a program whose opening section stated: “NO INDIVIDUAL ENTITLEMENT.—This part shall not be interpreted to entitle any individual or family to assistance under any State program funded under this part.”  See Pub. L. 104-193, § 103/401(b), codified at 42 U.S.C. § 601(b).  Not only did this law show that Congress knows how to create an assistance program where beneficiaries do not have federally enforceable rights, but it showed that Congress could do this while preserving people’s entitlement to Medicaid.  See Pub. L. 104-193, § 103/114, codified at 42 U.S.C. § 1396u-1 (enacting mandatory Medicaid eligibility category where people who would have gotten AFDC-linked Medicaid are eligible for Medicaid even though AFDC has been repealed).  As the conference committee report explained:

House bill
Provides for continued application of AFDC standards and methodologies for certain families, entitling them to Medicaid. Allows cost-of-living adjustments in income standards above level of July 16, 1996. See ‘‘Prohibitions; Requirements—Medicaid’’ above.
Senate amendment
Same except that States may use less restrictive income standards and methodologies than under current law.
Conference agreement
The conference agreement follows the House bill.

H.R. Conf. Rep. No. 104-725 at 322 (emphasis furnished).

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H.R. 3507 as introduced, May 22, 1996

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For Democrats’ response to the sec. 1508 limitations on private rights of action, see their remarks near the end of the H.R. 3734 committee report

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H.R. 3734 as introduced, June 27, 1996

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SEC. 1508. PRIVATE RIGHTS OF ACTION.

‘‘(a) LIMITATION ON FEDERAL CAUSES OF ACTION.—Except as provided in this section, no person or entity may bring an action against a State in Federal court based on its failure to comply with any requirement of this title.

‘‘(b) STATE CAUSES OF ACTION.—

‘‘(1) ADMINISTRATIVE AND JUDICIAL PROCEDURES.—A State plan shall provide for—

‘‘(A) an administrative procedure whereby an individual alleging a denial of eligibility for benefits or a denial of benefits under the State plan may receive a hearing regarding such denial, and

‘‘(B) judicial review, through a private right of action in a State court by an individual or class of individuals, regarding such a denial, but a State may require exhaustion of administrative remedies before such an action may be taken.

The administrative procedure under subparagraph (A) shall include impartial decision makers and a fair process and timely decisions.

‘‘(2) WRIT OF CERTIORARI.—An individual or class may file a petition for certiorari before the Supreme Court of the United States in a case of a denial of benefits under the State plan to review a determination of the highest court of a State regarding such denial.

(3) CONSTRUCTION.—Nothing in this subsection shall be construed as requiring a State to provide a private right of action in State court by a provider, health plan, or a class of providers or health plans.

‘‘(c) SECRETARIAL RELIEF.—

‘‘(1) IN GENERAL.—The Secretary may bring an action in Federal court against a State and on behalf of an individual or class of individuals in order to assure that a State provides benefits to individuals and classes of individuals as guaranteed under subsection (a) or (b) of section 1501 under its State plan.

‘‘(2) NO PRIVATE RIGHT.—No action may be brought in any court against the Secretary based on the Secretary’s bringing, or failure to bring, an action under paragraph (1).

‘‘(3) CONSTRUCTION.—Nothing in this title shall be construed as authorizing the Secretary to bring an action on behalf of a provider, health plan, or a class of providers or health plans.

===

H.R. Rep. No. 104-651, June 27, 1996

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Sec. 1508. Private rights of action
This section sets forth a process for administrative and judicial remedies under this Act. Each State would be required to provide an administrative procedure with a hearing for an individual who alleged a denial of eligibility for benefits or a denial of benefits guaranteed under the State plan, and for judicial review through a private right of action in a State court, with a right to petition the Supreme Court for review. There would be no State private right of action for a provider or health plan.

The Secretary could bring an action in Federal court against a State on behalf of an individual regarding the provision of benefits guaranteed under the State plan. However, the Secretary could not be sued for failure to bring an action against a State or with regard to any action brought against a State.

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Congressional Record consideration, July 17, 18, 19, 22, 23, and 31, 1996; August 1 and 2, 1996

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H.R. 3829, as introduced July 17, 1996 (no MediGrant)

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H.R. 3734 as it passed the House, July 18, 1996

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SEC. 4103. BLOCK GRANTS TO STATES.

(a) IN GENERAL.—Part A of title IV (42 U.S.C. 601 et seq.) is amended—
(1) by striking all that precedes section 418 (as added by section 4803(b)(2) of this Act) and inserting the following:

‘‘PART A—BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES

‘‘SEC. 401. PURPOSE.
‘‘(a) IN GENERAL.—The purpose of this part is to increase the flexibility of States in operating a program designed to—
‘‘(1) provide assistance to needy families so that children may be cared for in their own homes or in the homes of relatives;
‘‘(2) end the dependence of needy parents on government benefits by promoting job preparation, work, and marriage;
‘‘(3) prevent and reduce the incidence of out-of-wedlock pregnancies and establish annual numerical goals for preventing and reducing the incidence of these pregnancies; and
‘‘(4) encourage the formation and maintenance of two-parent families.
‘‘(b) NO INDIVIDUAL ENTITLEMENT.—This part shall not be interpreted to entitle any individual or family to assistance under any State program funded under this part.

***

SEC. 4115. CONFORMING AMENDMENTS TO MEDICAID PROGRAM.

(a) IN GENERAL.—Title XIX is amended—

(1) in section 1931, by inserting ‘‘subject to section 1931(a),’’ in subsection (a) after ‘‘under this title,’’ and by redesignating such section as section 1932; and

(2) by inserting after section 1930 the following new section:

‘‘CONTINUED APPLICATION OF STANDARDS AND METHODOLOGIES UNDER PART A OF TITLE IV FOR CERTAIN INDIVIDUALS

‘‘SEC. 1931. (a) For purposes of applying this title with respect to a State, notwithstanding any other provision of this title—

‘‘(1) except as provided in paragraphs (2) through (5), any reference in this title (or other provision of law in relation to the operation of this title) to a provision of part A of title IV, or a State plan under such part, shall be considered a reference to such provision or plan as in effect as of July 16, 1996, with respect to the State and eligibility for medical assistance under this title shall be determined as if such provision or plan (as in effect as of such date) remained in effect;

‘‘(2) any reference in section 1902(a)(5) or 1902(a)(55) to a State plan approved under part A of title IV shall be deemed a reference to a State program funded under such part;

‘‘(3) a State may provide that any income standard under the State plan referred to in paragraph (1) may be increased over a period (beginning after July 16, 1996) by a percentage that does not exceed the percentage increase in the consumer price index for all urban consumers (all items; U.S. city average) over such period;

‘‘(4) in applying section 1925, medical assistance is required to be provided under such section only if it is required to be provided under section 408(a)(13); and

‘‘(5) a State may terminate medical assistance under this title for an individual because the individual fails to meet any requirement imposed pursuant to section 407 if the individual was eligible for the medical assistance—

‘‘(A) on the basis of receipt of assistance under a State program funded under part A of title IV, or

‘‘(B) pursuant to paragraph (1), on the basis that the individual meets the requirements for receipt of aid or assistance under the State plan under part A of title IV (as in effect on July 16, 1996).

‘‘(b) In the case of a waiver of a provision of part A of title IV in effect with respect to a State as of July 16, 1996, if the waiver affects eligibility of individuals for medical assistance under this title, such waiver may continue to be applied, at the option of the State, in relation to this title after the date the waiver would otherwise expire.’’.

(b) PLAN AMENDMENT.—Section 1902(a) (42 U.S.C. 1396a(a)) is amended—

(1) by striking ‘‘and’’ at the end of paragraph (61),

(2) by striking the period at the end of paragraph (62) and inserting ‘‘; and’’, and

(3) by inserting after paragraph (62) the following new paragraph:

‘‘(63) provide for continuing to administer eligibility standards with respect to individuals who are (or seek to be) eligible for medical assistance based on the application of section 1931.’’.

(c) CONFORMING AMENDMENTS.—(1) Section 1902(c) (42 U.S.C. 1396a(c)) is amended by striking ‘‘if—’’ and all that follows and inserting the following: ‘‘if the State requires individuals described in subsection (l)(1) to apply for assistance under the State program funded under part A of title IV as a condition of applying for or receiving medical assistance under this title.’’.

(2) Section 1903(i) (42 U.S.C. 1396b(i)) is amended by striking paragraph (9).

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H.R. 3734 as it passed the Senate, July 23, 1996

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SEC. 2103. BLOCK GRANTS TO STATES.

(a) IN GENERAL.—Part A of title IV (42 U.S.C. 601 et seq.) is amended—

(1) by striking all that precedes section 418 (as added by section 2803(b)(2) of this Act) and inserting the following:

‘‘PART A—BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES

‘‘SEC. 401. PURPOSE.

‘‘(a) IN GENERAL.—The purpose of this part is to increase the flexibility of States in operating a program designed to—

‘‘(1) provide assistance to needy families so that children may be cared for in their own homes or in the homes of relatives;

‘‘(2) end the dependence of needy parents on government benefits by promoting job preparation, work, and marriage;

‘‘(3) prevent and reduce the incidence of out-of-wedlock pregnancies and establish annual numerical goals for preventing and reducing the incidence of these pregnancies; and

‘‘(4) encourage the formation and maintenance of two-parent families.

‘‘(b) NO INDIVIDUAL ENTITLEMENT.—This part shall not be interpreted to entitle any individual or family to assistance under any State program funded under this

part.

* * *

‘‘SEC. 408. PROHIBITIONS; REQUIREMENTS.

‘‘(a) IN GENERAL.—

“(11) ASSURING MEDICAID COVERAGE FOR LOW-INCOME FAMILIES.—

‘‘(A) IN GENERAL.—Notwithstanding any other provision of this Act, subject to the succeeding provisions of this paragraph, with respect to a State any reference in title XIX (or other provision of law in relation to the operation of such title) to a provision of this part, or a State plan under this part (or a provision of such a plan), including standards and methodologies for determining income and resources under this part or such plan, shall be considered a reference to such a provision or plan as in effect as of July 1, 1996, with respect to the State.

‘‘(B) CONSTRUCTIONS.—

‘‘(i) In applying section 1925(a)(1), the reference to ‘section 402(a)(8)(B)(ii)(II)’ is deemed a reference to a corresponding earning disregard rule (if any) established under a State program funded under this part (as in effect on or after October 1, 1996).

‘‘(ii) The provisions of former section 406(h) (as in effect on July 1, 1996) shall apply, in relation to title XIX, with respect to individuals who receive assistance under a State program funded under this part (as in effect on or after October 1, 1996) and are eligible for medical assistance under title XIX or who are described in subparagraph (C)(i) in the same manner as they apply as of July 1, 1996, with respect to individuals who become ineligible for aid to families with dependent children as a result (wholly or partly) of the collection or increased collection of child or spousal support under part D of this title.

‘‘(iii) With respect to the reference in section 1902(a)(5) to a State plan approved under this part, a State may treat such reference as a reference either to a State program funded under this part (as in effect on or after October 1, 1996) or to the State plan under title XIX.

‘‘(C) ELIGIBILITY CRITERIA.—

‘‘(i) IN GENERAL.—For purposes of title XIX, subject to clause (ii), in determining eligibility for medical assistance under such title, an individual shall be treated as receiving aid or assistance under a State plan approved under this part (and shall be treated as meeting the income and resource standards under this part) only if the individual meets—

‘‘(I) the income and resource standards for determining eligibility under such plan; and

‘‘(II) the eligibility requirements of such plan under subsections (a) through (c) of former section 406 and former section 407(a), as in effect as of July 1, 1996. Subject to clause (ii)(II), the income and resource methodologies under such plan as of such date shall be used in the determination of whether any individual meets income and resource standards under such plan.

‘‘(ii) STATE OPTION.—For purposes of applying this paragraph, a State may—

‘‘(I) lower its income standards applicable with respect to this part, but not below the income standards applicable under its State plan under this part on May 1, 1988; and

‘‘(II) use income and resource standards or methodologies that are less restrictive than the standards or methodologies used under the State plan under this part as of July 1, 1996.

‘‘(iii) TRANSITIONAL COVERAGE.—For purposes of section 1925, an individual who is receiving assistance under the State program funded under this part (as in effect on or after October 1, 1996) and is eligible for medical assistance under title XIX shall be treated as an individual receiving aid or assistance pursuant to a State plan approved under this part (as in effect as of July 1, 1996) (and thereby eligible for continuation of medical assistance under such section 1925).

‘‘(D) WAIVERS.—In the case of a waiver of a provision of this part in effect with respect to a State as of July 1, 1996, if the waiver affects eligibility of individuals for medical assistance under title XIX, such waiver may (but need not) continue to be applied, at the option of the State, in relation to such title after the date the waiver would otherwise expire. If a State elects not to continue to apply such a waiver, then, after the date of the expiration of the waiver, subparagraphs (A), (B), and (C) shall be applied as if any provisions so waived had not been waived.

‘‘(E) STATE OPTION TO USE 1 APPLICATION FORM.—Nothing in this paragraph, this part, or title XIX, shall be construed as preventing a State from providing for the same application form for assistance under a State program funded under this part (on or after October 1, 1996) and for medical assistance under title XIX.

‘‘(F) REQUIREMENT FOR RECEIPT OF FUNDS.—A State to which a grant is made under section 403 shall take such action as may be necessary to ensure that the provisions of this paragraph are carried out: Provided, That the State is otherwise participating in title XIX of this Act.

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H.R. Conf. Rep. No. 104-725 (July 30, 1996)

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46. PROHIBITIONS; REQUIREMENTS—MEDICAID
Present law
States must provide Medicaid to all AFDC recipients and to some AFDC-related groups who do not receive cash aid. Examples include persons who do not receive a monthly payment because the amount would be below $10 (Federal law prohibits payments this small) and persons whose payments are reduced to zero in order to recover previous overpayments.
States must continue Medicaid for specified periods for certain families who lose AFDC benefits. If the family loses AFDC benefits because of increased earnings or hours of employment, Medicaid
coverage must be extended for 12 months. (During the second 6
months a premium may be imposed, the scope of benefits may be
limited, or alternate delivery systems may be used.) If the family
loses AFDC because of increased child or spousal support, coverage
must be extended for 4 months. States are also required to furnish
Medicaid to certain two-parent families whose principal earner is
unemployed and who are not receiving cash assistance because the
State has set a time limit on their AFDC coverage.
House bill
States must provide medical assistance to persons who would
be eligible for AFDC cash benefits (under terms of July 16, 1996)
if that program still were in effect.
A State may increase the AFDC income standard above that
of July 16, 1996 by the percentage increase in the consumer price
index for all urban consumers over the same period.
292
Senate amendment
States must provide medical assistance to persons who would
be eligible for AFDC (under terms of July 1, 1996) as if that program
were still in effect. Simplifies standards to make it easier for
States to administer. States would have the option to: (1) lower
their income standard, but not below those in effect on May 1,
1988; and (2) use income and resource standards and methodologies
that are less restrictive than those in effect on July 1, 1996.
In order to provide States additional flexibility, States may use
1 application form and may administer the program through either
its title IV agency or its title XIX agency.
Families would receive transitional Medicaid benefits as under
current law.
Conference agreement
The conference agreement follows the House bill and the Senate
amendment, with the modification that States must retain the
income and resource standards they had for AFDC eligibility on
July 16, 1996. States may terminate Medicaid eligibility for an
adult who is terminated from TANF because of failure to work.
Conferees are concerned that the conference agreement may require
States to maintain a dual-eligibility determination system.
Conferees, however, lacked adequate information to determine the
true nature and extent of this problem. Thus, conferees recommend
that the Committees on Ways and Means, Commerce, and Finance
conduct hearings in the next Congress to carefully examine this
problem. If the committees determine that the dual-eligibility system
does in fact impose additional administrative costs on the
States, Congress should consider Federal-State cost-sharing
schemes and other legislative solutions. In the meantime, conferees
are establishing a fund of $.5 billion in entitlement spending that
will be distributed among States that experience additional administrative
expenses directly attributable to conducting a dual-eligibility
system.

* * *

104. CONFORMING AMENDMENTS TO MEDICAID
Present law
House bill
Provides for continued application of AFDC standards and
methodologies for certain families, entitling them to Medicaid. Allows
cost-of-living adjustments in income standards above level of
July 16, 1996. See ‘‘Prohibitions; Requirements—Medicaid’’ above.
Senate amendment
Same except that States may use less restrictive income standards
and methodologies than under current law.
Conference agreement
The conference agreement follows the House bill.

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Clinton signing statement, August 26, 1996

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Pub. L. 104-193

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SEC. 103. BLOCK GRANTS TO STATES.
(a) IN GENERAL.—Part A of title IV (42 U.S.C. 601 et seq.) is amended—
(1) by striking all that precedes section 418 (as added by section 603(b)(2) of this Act) and inserting the following:

‘‘PART A—BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES

‘‘SEC. 401. PURPOSE.
‘‘(a) IN GENERAL.—The purpose of this part is to increase the flexibility of States in operating a program designed to—
‘‘(1) provide assistance to needy families so that children may be cared for in their own homes or in the homes of relatives;
‘‘(2) end the dependence of needy parents on government benefits by promoting job preparation, work, and marriage;
‘‘(3) prevent and reduce the incidence of out-of-wedlock pregnancies and establish annual numerical goals for preventing and reducing the incidence of these pregnancies; and
‘‘(4) encourage the formation and maintenance of two-parent families.
‘‘(b) NO INDIVIDUAL ENTITLEMENT.—This part shall not be interpreted to entitle any individual or family to assistance under any State program funded under this part.

* * *

SEC. 114. ASSURING MEDICAID COVERAGE FOR LOW-INCOME
FAMILIES.
(a) IN GENERAL.—Title XIX is amended—
(1) by redesignating section 1931 as section 1932; and
(2) by inserting after section 1930 the following new section:
‘‘ASSURING COVERAGE FOR CERTAIN LOW-INCOME FAMILIES
‘‘SEC. 1931. (a) REFERENCES TO TITLE IV–A ARE REFERENCES
TO PRE-WELFARE-REFORM PROVISIONS.—Subject to the succeeding
provisions of this section, with respect to a State any reference in this title (or any other provision of law in relation to the operation of this title) to a provision of part A of title IV, or a State plan under such part (or a provision of such a plan), including income and resource standards and income and resource methodologies under such part or plan, shall be considered a reference to such a provision or plan as in effect as of July 16, 1996, with respect to the State.
‘‘(b) APPLICATION OF PRE-WELFARE-REFORM ELIGIBILITY CRITERIA.—
‘‘(1) IN GENERAL.—For purposes of this title, subject to paragraphs (2) and (3), in determining eligibility for medical assistance—
‘‘(A) an individual shall be treated as receiving aid or assistance under a State plan approved under part A of title IV only if the individual meets—
‘‘(i) the income and resource standards for determining eligibility under such plan, and
‘‘(ii) the eligibility requirements of such plan under subsections (a) through (c) of section 406 and section 407(a), as in effect as of July 16, 1996; and
‘‘(B) the income and resource methodologies under such plan as of such date shall be used in the determination of whether any individual meets income and resource standards under such plan.
‘‘(2) STATE OPTION.—For purposes of applying this section, a State—
‘‘(A) may lower its income standards applicable with respect to part A of title IV, but not below the income standards applicable under its State plan under such part on May 1, 1988;
‘‘(B) may increase income or resource standards under the State plan referred to in paragraph (1) over a period (beginning after July 16, 1996) by a percentage that does not exceed the percentage increase in the Consumer Price Index for all urban consumers (all items; United States city average) over such period; and
‘‘(C) may use income and resource methodologies that are less restrictive than the methodologies used under the State plan under such part as of July 16, 1996.
‘‘(3) OPTION TO TERMINATE MEDICAL ASSISTANCE FOR FAILURE TO MEET WORK REQUIREMENT.—
‘‘(A) INDIVIDUALS RECEIVING CASH ASSISTANCE UNDER TANF.—In the case of an individual who—
‘‘(i) is receiving cash assistance under a State program funded under part A of title IV,
‘‘(ii) is eligible for medical assistance under this title on a basis not related to section 1902(l), and
‘‘(iii) has the cash assistance under such program terminated pursuant to section 407(e)(1)(B) (as in effect on or after the welfare reform effective date) because of refusing to work,
the State may terminate such individual’s eligibility for medical assistance under this title until such time as there no longer is a basis for the termination of such cash assistance because of such refusal.
‘‘(B) EXCEPTION FOR CHILDREN.—Subparagraph (A) shall not be construed as permitting a State to terminate medical assistance for a minor child who is not the head of a household receiving assistance under a State program funded under part A of title IV.
‘‘(c) TREATMENT FOR PURPOSES OF TRANSITIONAL COVERAGE PROVISIONS.—
‘‘(1) TRANSITION IN THE CASE OF CHILD SUPPORT COLLECTIONS.—
The provisions of section 406(h) (as in effect on July 16, 1996) shall apply, in relation to this title, with respect to individuals (and families composed of individuals) who are described in subsection (b)(1)(A), in the same manner as they applied before such date with respect to individuals who became ineligible for aid to families with dependent children as a result (wholly or partly) of the collection of child or spousal support under part D of title IV.
‘‘(2) TRANSITION IN THE CASE OF EARNINGS FROM EMPLOYMENT.—
For continued medical assistance in the case of individuals (and families composed of individuals) described in subsection (b)(1)(A) who would otherwise become ineligible because of hours or income from employment, see sections 1925 and 1902(e)(1).
‘‘(d) WAIVERS.—In the case of a waiver of a provision of part A of title IV in effect with respect to a State as of July 16, 1996, or which is submitted to the Secretary before the date of the enactment of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 and approved by the Secretary on or before July 1, 1997, if the waiver affects eligibility of individuals for medical assistance under this title, such waiver may (but need not) continue to be applied, at the option of the State, in relation to this title after the date the waiver would otherwise expire.
‘‘(e) STATE OPTION TO USE 1 APPLICATION FORM.—Nothing in this section, or part A of title IV, shall be construed as preventing a State from providing for the same application form for assistance under a State program funded under part A of title IV (on or after the welfare reform effective date) and for medical assistance under this title.
‘‘(f) ADDITIONAL RULES OF CONSTRUCTION.—
‘‘(1) With respect to the reference in section 1902(a)(5) to a State plan approved under part A of title IV, a State may treat such reference as a reference either to a State program funded under such part (as in effect on and after the welfare reform effective date) or to the State plan under this title.
‘‘(2) Any reference in section 1902(a)(55) to a State plan approved under part A of title IV shall be deemed a reference to a State program funded under such part.
‘‘(3) In applying section 1903(f), the applicable income limitation otherwise determined shall be subject to increase in the same manner as income or resource standards of a State may be increased under subsection (b)(2)(B).
‘‘(g) RELATION TO OTHER PROVISIONS.—The provisions of this section shall apply notwithstanding any other provision of this Act.
‘‘(h) TRANSITIONAL INCREASED FEDERAL MATCHING RATE FOR INCREASED ADMINISTRATIVE COSTS.—
‘‘(1) IN GENERAL.—Subject to the succeeding provisions of this subsection, the Secretary shall provide that with respect to administrative expenditures described in paragraph (2) the per centum specified in section 1903(a)(7) shall be increased to such percentage as the Secretary specifies.
‘‘(2) ADMINISTRATIVE EXPENDITURES DESCRIBED.—The administrative expenditures described in this paragraph are expenditures described in section 1903(a)(7) that a State demonstrates to the satisfaction of the Secretary are attributable to administrative costs of eligibility determinations that (but for the enactment of this section) would not be incurred.
‘‘(3) LIMITATION.—The total amount of additional Federal funds that are expended as a result of the application of this subsection for the period beginning with fiscal year 1997 and ending with fiscal year 2000 shall not exceed $500,000,000.
In applying this paragraph, the Secretary shall ensure the equitable distribution of additional funds among the States.
‘‘(4) TIME LIMITATION.—This subsection shall only apply with respect to a State for expenditures incurred during the first 12 calendar quarters in which the State program funded under part A of title IV (as in effect on and after the welfare reform effective date) is in effect.
‘‘(i) WELFARE REFORM EFFECTIVE DATE.—In this section, the term ‘welfare reform effective date’ means the effective date, with respect to a State, of title I of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (as specified in section 116 of such Act).’’.
(b) PLAN AMENDMENT.—Section 1902(a) (42 U.S.C. 1396a(a)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph (61),
(2) by striking the period at the end of paragraph (62) and inserting ‘‘; and’’, and
(3) by inserting after paragraph (62) the following new paragraph:
‘‘(63) provide for administration and determinations of eligibility with respect to individuals who are (or seek to be) eligible for medical assistance based on the application of section 1931.’’.
(c) EXTENSION OF WORK TRANSITION PROVISIONS.—Sections 1902(e)(1)(B) and 1925(f) (42 U.S.C. 1396a(e)(1)(B), 1396r–6(f)) are each amended by striking ‘‘1998’’ and inserting ‘‘2001’’.
(d) ELIMINATION OF REQUIREMENT OF MINIMUM AFDC PAYMENT LEVELS.—(1) Section 1902(c) (42 U.S.C. 1396a(c)) is amended by striking ‘‘if—’’ and all that follows and inserting the following:
‘‘if the State requires individuals described in subsection (l)(1) to apply for assistance under the State program funded under part A of title IV as a condition of applying for or receiving medical assistance under this title.’’.
(2) Section 1903(i) (42 U.S.C. 1396b(i)) is amended by striking paragraph (9).