103 STAT. 2266 PUBLIC LAW 101-239—DEC. 19, 1989 42 USC 1396a note. Disadvantaged persons. 42 USC 1396r-7 note. contracts. postpartum women (as defined in section 17 of the Child Nutrition Act of 1966), or children below the age of 5, of the availability of benefits furnished by the special supple- mental food program under such section, and ' "(B) for referring any such individual to the State agency responsible for administering such program.". (b) EFFECTIVE DATE. —The amendments made by subsection (a) shall take effect on July 1, 1990, without regard to whether regula- tions to carry out such amendments have been promulgated by such date. SEC. 6407. DEMONSTRATION PROJECTS TO STUDY THE EFFECT OF ALLOWING STATES TO EXTEND MEDICAID TO PREGNANT WOMEN AND CHILDREN NOT OTHERWISE QUALIFIED TO RE- CEIVE MEDICAID BENEFITS. (a) IN GENERAL. —In order to allow States to develop and carry out innovative programs to extend health insurance coverage to preg- nant women and children under age 20 who lack insurance and to encourage workers to obtain health insurance for themselves and their children, the Secretary of Health and Human Services (in this section referred to as the "Secretary") shall enter into agreements with several States submitting applications in accordance with subsection (b) for the purpose of conducting demonstration projects to study the effect on access to health care, private insurance coverage, and costs of health care when such States are allowed to extend benefits under title XIX of the Social Security Act, either directly, in the same manner, or otherwise as alternative assistance authorized in section 1925(b)(4)(D) of such Act, to pregnant women and children under 20 years of age who are not otherwise qualified to receive benefits under such section. (b) PROJECT REQUIREMENTS. — (1) Each State applying to partici- pate in the demonstration project under subsection (a) shall assure the Secretary that eligibility shall be limited to pregnant women and children who have not attained 20 years of age who are in families with income below 185 percent of the income official pov- erty line (referred to in subsection (c)(D). (2) The Secretary shall further provide in conducting demonstra- tion projects under this section that, if one or more of such dem- onstration projects utilizes employer coverage as allowed under section 1925(b)(4)CD) of the Social Security Act, such project shall require an employer contribution. (c) PREMIUMS. —In the case of pregnant women and children eli- gible to participate in such demonstration projects whose family income level is— (1) below 100 percent of the income official poverty line (as defined by the Office of Management and Budget, and revised annually in accordance with section 673(2) of the Omnibus rf^. Budget Reconciliation Act of 1981) applicable to a family of the size involved, there shall be no premium charged; and > (2) between 100 and 185 percent of such income official pov- erty line, there shall be a premium equal to— (A) an amount based on a sliding scale relating to income, .t...,,.? or (B) 3 percent of the family's average gross monthly earn- ings, whichever is less.
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