12 2 STA T . 2 394PUBLIC LA W 11 0– 2 5 2 —J U NE 30 , 200 8‘ ‘ (j)TREATM E N T OFP RO G RAM EXP EN S ES .—Notwi t hs t and in g an y oth erp ro v ision o fl aw , reasona b lee x penses of S tates in c arrying o u t the progra m under this section shall be treated, for purposes of section 1903 (a), in the same manner as State expenditures speci - fied in paragraph ( 7 ) of such section. ’ ’. ( 2 ) STATE P L AN RE QUI REMENTS.—Section 1902(a) of such A ct( 4 2 U .S. C . 139 6 a(a)) is amended— (A) in paragraph (69) by stri k ing ‘‘and’’ at the end
( B ) in paragraph (70) by striking the period at the end and inserting ‘‘; and’’; and (C) by inserting after paragraph (70), as so amended, the following new paragraph
‘‘(71) provide that the State will implement an asset verification program as re q uired under section 1940.’’. (3) W IT H HOL D ING OF FEDERAL MAT C HING PA Y MENTS FOR NONCOMPLIANT STATES.—Section 1903(i) of such Act (42 U.S.C. 1396b(i)) is amended— (A) in paragraph (22) by striking ‘‘or’’ at the end; (B) in paragraph (23) by striking the period at the end and inserting ‘‘; or’’; and (C) by adding after paragraph (23) the following new paragraph: ‘‘(24) if a State is required to implement an asset verification program under section 1940 and fails to implement such program in accordance with such section, with respect to amounts expended by such State for medical assistance for individuals subject to asset verification under such section, unless— ‘‘(A) the State demonstrates to the Secretary’s satisfac- tion that the State made a good faith effort to comply; ‘‘(B) not later than 60 days after the date of a finding that the State is in noncompliance, the State submits to the Secretary (and the Secretary approves) a corrective action plan to remedy such noncompliance; and ‘‘(C) not later than 12 months after the date of such submission (and approval), the State fulfills the terms of such corrective action plan.’’. (4) R EPEAL.—Section 4 of Public L aw 110 – 90 is repealed. SEC. 7002. (a) M EDICARE I MPRO V EMENT F UND.— Title XV III of the Social Security Act (42 U.S.C. 139 5 et seq.) is amended by adding at the end the following new section: ‘‘MEDICARE IMPROVEMENT FUND ‘‘SEC. 1 8 98. (a) ESTA B LISHMENT.—The Secretary shall establish under this title a Medicare Improvement Fund (in this section referred to as the ‘Fund’) which shall be available to the Secretary to make improvements under the original fee-for-service program under parts A and B for individuals entitled to, or enrolled for, benefits under part A or enrolled under part B. ‘‘(b) FUNDING.— ‘‘(1) IN GENERAL.—There shall be available to the Fund, for expenditures from the Fund for services furnished during fiscal year 2014, $ 2,220,000,000. ‘‘(2) PAYMENT FROM TRUST FUNDS.—The amount specified under paragraph (1) shall be available to the Fund, as expendi- tures are made from the Fund, from the Federal H ospital Insurance Trust Fund and the Federal Supplementary Medical 42USC1395i ii . 42 USC 139 6anote . Ac tion pl an. D ea d line s .
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