text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as ``Health Care for Young Adults Act of 
  2005''.
  
  SEC. 2. PROVIDING STATE OPTION FOR SCHIP AND MEDICAID COVERAGE OF YOUNG 
                ADULTS UP TO AGE 23.
  
      (a) In General.--
              (1) Medicaid.--(A) Section 1902(l)(1)(D) of the Social 
          Security Act (42 U.S.C. 1396a(l)(1)(D)) is amended by inserting 
          ``(or, at the option of the State, who have not attained 20, 
          21, or 22 years of age, as the State may elect)'' after ``have 
          not attained 19 years of age''.
              (B) Clause (i) of section 1905(a) of the Social Security 
          Act (42 U.S.C. 1396d(a)) is amended by striking ``under the age 
          of 21, or, at the option of the State, under the age of 20, 19, 
          or 18 as the State may choose'' and inserting ``under the age 
          of 23, or, at the option of the State, under the age of 22, 21, 
          20, 19, or 18 as the State may elect''.
              (2) SCHIP.--Section 2110(c)(1) of such Act (42 U.S.C. 
          1397jj(c)(1)) is amended by inserting after ``19 years of age'' 
          the following: ``(or, at the option of the State and subject to 
          the availability of additional allotments under section 
          2104(d), 20, 21, 22, or 23 years of age)''.
      (b) Additional SCHIP Allotments for Providing Coverage of Optional 
  Young Adults.--
              (1) In general.--Section 2104 of such Act (42 U.S.C. 
          1397dd) is amended by inserting after subsection (c) the 
          following:
      ``(d) Additional Allotments for the Provision of Coverage to 
  Optional Young Adults.--
              ``(1) Appropriation; total allotment.--For the purpose of 
          providing additional allotments to States under this title, 
          there is appropriated, out of any money in the Treasury not 
          otherwise appropriated, for each of fiscal years 2006 through 
          2009, $500,000,000.
              ``(2) State and territorial allotments.--In addition to the 
          allotments provided under subsections (b) and (c), subject to 
          paragraph (3), of the amount available for the additional 
          allotments under paragraph (1) for a fiscal year, the Secretary 
          shall allot to each State with a State child health plan 
          approved under this title--
                      ``(A) in the case of such a State other than a 
                  commonwealth or territory described in subparagraph 
                  (B), the same proportion as the proportion of the 
                  State's allotment under subsection (b) (determined 
                  without regard to subsection (f)) to the total amount 
                  of the allotments under subsection (b) for such States 
                  eligible for an allotment under this paragraph for such 
                  fiscal year; and
                      ``(B) in the case of a commonwealth or territory 
                  described in subsection (c)(3), the same proportion as 
                  the proportion of the commonwealth's or territory's 
                  allotment under subsection (c) (determined without 
                  regard to subsection (f)) to the total amount of the 
                  allotments under subsection (c) for commonwealths and 
                  territories eligible for an allotment under this 
                  paragraph for such fiscal year.
              ``(3) Use of additional allotment.--Additional allotments 
          provided under this subsection are not available for amounts 
          expended before October 1, 2005. Such amounts are available for 
          amounts expended on or after such date only for--
                      ``(A) expenditures described in section 
                  1905(u)(4)(A); and
                      ``(B) child health assistance for individuals who 
                  are targeted low-income children and over 18 years of 
                  age and who are low-income children only because of an 
                  election by the State under section 2110(c)(1).''.
              (2) Conforming amendments.--Section 2104 of such Act (42 
          U.S.C. 1397dd) is amended--
                      (A) in subsection (a), in the matter preceding 
                  paragraph (1), by inserting ``subject to subsection 
                  (d),'' after ``under this section,'';
                      (B) in subsection (b)(1), by inserting ``and 
                  subsection (d)'' after ``Subject to paragraph (4)''; 
                  and
                      (C) in subsection (c)(1), by inserting ``subject to 
                  subsection (d),'' after ``for a fiscal year,''.
      (c) Modification of Medicaid Caps for Territories.--Section 1108 of 
  such Act (42 U.S.C. 1308) is amended--
              (1) in subsection (f), by striking ``subsection (g)'' and 
          inserting ``subsections (g) and (h)''; and
              (2) by adding at the end the following new subsection:
      ``(h) The Secretary shall provide for such increase in the 
  limitations under subsections (f) and (g) with respect to each of the 
  territories as may be necessary for each such territory to provide for 
  an expansion of medicaid coverage to young adults described in section 
  1902(l)(1)(D).''.
      (d) Effective Date.--The amendments made by this section apply to 
  items and services furnished on or after October 1, 2005, without 
  regard to whether regulations implementing such amendments have been 
  promulgated.
  
  SEC. 3. GRANTS TO IMPLEMENT MEDICAID AND SCHIP EXPANSIONS.
  
      (a) In General.--The Secretary of Health and Human Services shall 
  provide for grants to States (as defined for purposes of titles XIX and 
  XXI of the Social Security Act) in order to enable such States to 
  implement expansions of eligibility for children and young adults their 
  State medicaid plans under title XIX of the Social Security Act and 
  State child health plans under title XXI of such Act. Such grants shall 
  be available for planning, implementation, and outreach with respect to 
  such expanded eligibility populations.
      (b) Terms and Conditions.--Grants under this section shall be made 
  available under such terms and conditions, including the approval of a 
  grant application, as the Secretary shall specify.
      (c) Authorization of Appropriations.--There are authorized to be 
  appropriated such sums as may be necessary to provide for grants under 
  this section.
target: Health Care for Young Adults Act of 2005 - Amends titles XIX (Medicaid) and XXI (State Children's Health Insurance Program) to permit states to provide Medicaid and SCHIP coverage of low-income youth up to age 23.
  
  Provides for additional SCHIP allotments for the provision of coverage to optional young adults.
  
  Amends SSA title XI to modify Medicaid caps for territories.
  
  Directs the Secretary of Health and Human Services to provide for grants to states in order to enable them to implement expansions of eligibility for children and young adults in their state Medicaid and state SCHIP plans.
feat_title: To amend titles XIX and XXI of the Social Security Act to permit States to cover low-income youth up to age 23.