SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Stabilize Medicaid and CHIP Coverage 
Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Every year millions of people are enrolled in Medicaid 
        and the Children's Health Insurance Program (in this section 
        referred to as ``CHIP''), but subsequently lose their coverage, 
        despite still being eligible, because of inefficient and 
        cumbersome paperwork and logistical requirements.
            (2) Data show that the typical enrollee receives Medicaid 
        coverage for about three-quarters of a year. Coverage periods 
        are lower for non-elderly, non-disabled adults than for those 
        with disabilities, seniors, and children.
            (3) Medicaid enrollees with coverage disruptions are more 
        likely to be hospitalized for illnesses like asthma, diabetes, 
        or cardiovascular disease that can be effectively managed 
        through ongoing primary medical care and medication, are less 
        likely to be screened for breast cancer, and may have poorer 
        cancer outcomes.
            (4) Children enrolled in CHIP also experience disruptions 
        in health coverage and care. For example, during just a one-
        year period, over one-third of CHIP enrollees were also 
        enrolled in a State's Medicaid program. Transitions between 
        Medicaid and CHIP can cause disruptions in care because the 
        health care coverage and participating providers vary between 
        the two programs.
            (5) Interruptions in coverage can impair the receipt of 
        effective primary care and lead to expensive hospitalizations 
        or emergency room visits. Unnecessary enrollment, 
        disenrollment, and reenrollment in Medicaid and CHIP result in 
        higher administrative expenses for re-enrollment and result in 
        more people uninsured at any given time.
            (6) Stable coverage under Medicaid and CHIP lowers average 
        monthly medical costs.
            (7) Continuous enrollment also permits better prevention 
        and disease management, leading to fewer serious illnesses and 
        hospitalizations.
            (8) Children with stable coverage are less likely to have 
        unmet medical needs, allowing children to receive the 
        preventive care that is necessary to help them grow into 
        healthy adults.

SEC. 3. 12-MONTH CONTINUOUS ENROLLMENT.

    (a) Requirement of 12-Month Continuous Enrollment Under Medicaid.--
Section 1902(e)(12) of the Social Security Act (42 U.S.C. 1396a(e)(12)) 
is amended to read as follows:
            ``(12) 12-month continuous enrollment.--Notwithstanding any 
        other provision of this title, a State plan approved under this 
        title (or under any waiver of such plan approved pursuant to 
        section 1115 or section 1915), shall provide that an individual 
        who is determined to be eligible for benefits under such plan 
        (or waiver) shall remain eligible and enrolled for such 
        benefits through the end of the month in which the 12-month 
        period (beginning on the date of determination of eligibility) 
        ends.''.
    (b) Requirement of 12-Month Continuous Enrollment Under CHIP.--
            (1) In general.--Section 2102(b) of the Social Security Act 
        (42 U.S.C. 1397bb(b)) is amended by adding at the end the 
        following new paragraph:
            ``(6) Requirement for 12-month continuous enrollment.--
        Notwithstanding any other provision of this title, a State 
        child health plan that provides child health assistance under 
        this title through a means other than described in section 
        2101(a)(2), shall provide that an individual who is determined 
        to be eligible for benefits under such plan shall remain 
        eligible and enrolled for such benefits through the end of the 
        month in which the 12-month period (beginning on the date of 
        determination of eligibility) ends.''.
            (2) Conforming amendment.--Section 2105(a)(4)(A) of the 
        Social Security Act (42 U.S.C. 1397ee(a)(4)(A)) is amended--
                    (A) by striking ``has elected the option of'' and 
                inserting ``is in compliance with the requirement 
                for''; and
                    (B) by striking ``applying such policy under its 
                State child health plan under this title'' and 
                inserting ``in compliance with section 2102(b)''.
    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph (2) or 
        (3), the amendments made by subsections (a) and (b) shall apply 
        to determinations (and redeterminations) of eligibility made on 
        or after the date that is 18 months after the date of the 
        enactment of this Act.
            (2) Extension of effective date for state law amendment.--
        In the case of a State plan under title XIX or State child 
        health plan under title XXI of the Social Security Act (42 
        U.S.C. 1396 et seq., 42 U.S.C. 1397aa et seq.) which the 
        Secretary of Health and Human Services determines requires 
        State legislation (other than legislation appropriating funds) 
        in order for the respective plan to meet the additional 
        requirement imposed by the amendment made by subsection (a) or 
        (b), respectively, the respective plan shall not be regarded as 
        failing to comply with the requirements of such title solely on 
        the basis of its failure to meet such applicable additional 
        requirement before the first day of the first calendar quarter 
        beginning after the close of the first regular session of the 
        State legislature that begins after the date of enactment of 
        this Act. For purposes of the previous sentence, in the case of 
        a State that has a 2-year legislative session, each year of the 
        session is considered to be a separate regular session of the 
        State legislature.
            (3) Option to implement 12-month continuous eligibility 
        prior to effective date.--A State may elect through a State 
        plan amendment under title XIX or XXI of the Social Security 
        Act (42 U.S.C. 1396 et seq., 42 U.S.C. 1397aa et seq.) to apply 
        the amendment made by subsection (a) or (b), respectively, on 
        any date prior to the 18-month date specified in paragraph (1), 
        but not sooner than the date of the enactment of this Act.
Stabilize Medicaid and CHIP Coverage Act - Amends title XIX (Medicaid) of the Social Security Act (SSA) to require a state Medicaid plan to provide 12-month continuous enrollment for an eligible individual, regardless of age.  Amends SSA title XXI (State Children's Health Insurance) (CHIP) to require a state CHIP plan also to provide 12-month continuous enrollment for an eligible individual.
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