US Code

Public Law 119-73 (01/23/2026)

42 U.S.C. § 1396u–3

State coverage of medicare cost-sharing for additional low-income medicare beneficiaries

(a)

In general

section 1396a(a)(10)(E)(iv) of this titleA State plan under this subchapter shall provide, under and subject to the succeeding provisions of this section and through a plan amendment, for medical assistance for payment of the cost of medicare cost-sharing described in such section on behalf of all individuals described in such section (in this section referred to as “qualifying individuals”) who are selected to receive such assistance under subsection (b).

(b)

Selection of qualifying individuals

A State shall select qualifying individuals, and provide such individuals with assistance, under this section consistent with the following:
(1)

All qualifying individuals may apply

The State shall permit all qualifying individuals to apply for assistance during a calendar year.

(2)

Selection on first-come, first-served basis

(A)

In general

For each calendar year (beginning with 1998), from (and to the extent of) the amount of the allocation under subsection (c) for the State for the fiscal year ending in such calendar year, the State shall select qualifying individuals who apply for the assistance in the order in which they apply.

(B)

Carryover

section 1396a(a)(10)(E) of this titleFor calendar years after 1998, the State shall give preference to individuals who were provided such assistance (or other assistance described in ) in the last month of the previous year and who continue to be (or become) qualifying individuals.

(3)

Limit on number of individuals based on allocation

The State shall limit the number of qualifying individuals selected with respect to assistance in a calendar year so that the aggregate amount of such assistance provided to such individuals in such year is estimated to be equal to (but not exceed) the State’s allocation under subsection (c) for the fiscal year ending in such calendar year.

(4)

Receipt of assistance during duration of year

If a qualifying individual is selected to receive assistance under this section for a month in a year, the individual is entitled to receive such assistance for the remainder of the year if the individual continues to be a qualifying individual. The fact that an individual is selected to receive assistance under this section at any time during a year does not entitle the individual to continued assistance for any succeeding year.

(c)

Allocation

(1)

Total allocation

The total amount available for allocation under this section for—
(A)
fiscal year 1998 is $200,000,000;
(B)
fiscal year 1999 is $250,000,000;
(C)
fiscal year 2000 is $300,000,000;
(D)
fiscal year 2001 is $350,000,000; and
(E)
each of fiscal years 2002 and 2003 is $400,000,000.
(2)

Allocation to States

The Secretary shall provide for the allocation of the total amount described in paragraph (1) for a fiscal year, among the States that executed a plan amendment in accordance with subsection (a), based upon the Secretary’s estimate of the ratio of—
(A)
section 1396a(a)(10)(E)(iv) of this title an amount equal to the total number of individuals described in in the State; to
(B)
the sum of the amounts computed under subparagraph (A) for all eligible States.
(d)

Applicable FMAP

section 1396a(a)(10)(E)(iv) of this titleWith respect to assistance described in furnished in a State for calendar quarters in a calendar year—
(1)
to the extent that such assistance does not exceed the State’s allocation under subsection (c) for the fiscal year ending in the calendar year, the Federal medical assistance percentage shall be equal to 100 percent; and
(2)
to the extent that such assistance exceeds such allocation, the Federal medical assistance percentage is 0 percent.
(e)

Limitation on entitlement

section 1396a(a)(10)(E)(iv) of this titleExcept as specifically provided under this section, nothing in this subchapter shall be construed as establishing any entitlement of individuals described in to assistance described in such section.

(f)

Coverage of costs through part B of medicare program

section 1395t of this titlesection 1396b(a) of this titlesection 1395r of this titleFor each fiscal year, the Secretary shall provide for the transfer from the Federal Supplementary Medical Insurance Trust Fund under to the appropriate account in the Treasury that provides for payments under with respect to medical assistance provided under this section, of an amount equivalent to the total of the amount of payments made under such section that is attributable to this section and such transfer shall be treated as an expenditure from such Trust Fund for purposes of .

(g)

Special rules

(1)

In general

With respect to each period described in paragraph (2), a State shall select qualifying individuals, subject to paragraph (3), and provide such individuals with assistance, in accordance with the provisions of this section as in effect with respect to calendar year 2003, except that for such purpose—
(A)
references in the preceding subsections of this section to a year, whether fiscal or calendar, shall be deemed to be references to such period; and
(B)
the total allocation amount under subsection (c) for such period shall be the amount described in paragraph (2) for that period.
(2)

Periods and total allocation amounts described

For purposes of this subsection—
(A)
for the period that begins on , and ends on , the total allocation amount is $315,000,000;
(B)
for the period that begins on , and ends on , the total allocation amount is $130,000,000;
(C)
for the period that begins on , and ends on , the total allocation amount is $350,000,000;
(D)
for the period that begins on , and ends on , the total allocation amount is $150,000,000;
(E)
for the period that begins on , and ends on , the total allocation amount is $462,500,000;
(F)
for the period that begins on , and ends on , the total allocation amount is $165,000,000;
(G)
for the period that begins on , and ends on , the total allocation amount is $720,000,000;
(H)
for the period that begins on , and ends on , the total allocation amount is $280,000,000;
(I)
for the period that begins on , and ends on , the total allocation amount is $450,000,000;
(J)
for the period that begins on , and ends on , the total allocation amount is $280,000,000;
(K)
for the period that begins on , and ends on , the total allocation amount is $485,000,000;
(L)
for the period that begins on , and ends on , the total allocation amount is $300,000,000;
(M)
for the period that begins on , and ends on , the total allocation amount is $485,000,000;
(N)
for the period that begins on , and ends on , the total allocation amount is $300,000,000;
(O)
for the period that begins on , and ends on , the total allocation amount is $250,000,000;
(P)
for the period that begins on , and ends on , the total allocation amount is $535,000,000; and
(Q)
for 2016 and, subject to paragraph (4), for each subsequent year, the total allocation amount is $980,000,000.
(3)

Rules for periods that begin after January 1

For any specific period described in subparagraph (B), (D), (F), (H), (J), (L), (N), or (P) of paragraph (2), the following applies:
(A)
The specific period shall be treated as a continuation of the immediately preceding period in that calendar year for purposes of applying subsection (b)(2) and qualifying individuals who received assistance in the last month of such immediately preceding period shall be deemed to be selected for the specific period (without the need to complete an application for assistance for such period).
(B)
The limit to be applied under subsection (b)(3) for the specific period shall be the same as the limit applied under such subsection for the immediately preceding period.
(C)
The ratio to be applied under subsection (c)(2) for the specific period shall be the same as the ratio applied under such subsection for the immediately preceding period.
(4)

Adjustment to allocations

The Secretary may increase the allocation amount under paragraph (2)(Q) for a year (beginning with 2017) up to an amount that does not exceed the product of the following:
(A)

Maximum allocation amount for previous year

In the case of 2017, the allocation amount for 2016, or in the case of a subsequent year, the maximum allocation amount allowed under this paragraph for the previous year.

(B)

Increase in part B premium

section 1395r of this titleThe monthly premium rate determined under for the year divided by the monthly premium rate determined under such section for the previous year.

(C)

Increase in part B enrollment

The average number of individuals (as estimated by the Chief Actuary of the Centers for Medicare & Medicaid Services in September of the previous year) to be enrolled under part B of subchapter XVIII for months in the year divided by the average number of such individuals (as so estimated) under this subparagraph with respect to enrollments in months in the previous year.

Aug. 14, 1935, ch. 531Pub. L. 105–33, title IV, § 4732(c)111 Stat. 520Pub. L. 106–113, div. B, § 1000(a)(6) [title VI, § 608(x)]113 Stat. 1536Pub. L. 108–89, title IV, § 401(b)117 Stat. 1134Pub. L. 108–173, title I, § 103(f)(2)117 Stat. 2160Pub. L. 108–448, § 1(b)118 Stat. 3467Pub. L. 109–91, title I, § 101(b)119 Stat. 2091Pub. L. 110–90, § 3(b)121 Stat. 984Pub. L. 110–173, title II, § 203(b)121 Stat. 2513Pub. L. 110–275, title I, § 111(b)122 Stat. 2503Pub. L. 110–379, § 2122 Stat. 4075Pub. L. 111–5, div. B, title V, § 5005(b)123 Stat. 505Pub. L. 111–127, § 3124 Stat. 4Pub. L. 111–309, title I, § 110(b)124 Stat. 3288Pub. L. 112–78, title III, § 310(b)125 Stat. 1286Pub. L. 112–96, title III, § 3101(b)126 Stat. 191Pub. L. 112–240, title VI, § 621(b)126 Stat. 2352Pub. L. 113–67, div. B, title II, § 1201(b)127 Stat. 1198Pub. L. 113–93, title II, § 201(b)128 Stat. 1045Pub. L. 114–10, title II, § 211(b)129 Stat. 151(, title XIX, § 1933, as added , , ; amended , , , 1501A–398; , (c), , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , .)

Editorial Notes

Prior Provisions

section 1396v of this titleA prior section 1933 of act , was renumbered section 1939 and is classified to .

Amendments

Pub. L. 114–10, § 211(b)(1)2015—Subsec. (g)(2). , redesignated subpars. (I) to (W) as (A) to (O), respectively, added subpars. (P) and (Q), and struck out former subpars. (A) to (H) which related to total allocation amounts for various periods beginning on , and ending on .

Pub. L. 114–10, § 211(b)(2)Subsec. (g)(3). , substituted “or (P)” for “(P), (R), (T), or (V)” in introductory provisions.

Pub. L. 114–10, § 211(b)(3)Subsec. (g)(4). , added par. (4).

Pub. L. 113–93, § 201(b)(1)(A)2014—Subsec. (g)(2)(T). , struck out “and” at end.

Pub. L. 113–93, § 201(b)(1)(B)Subsec. (g)(2)(U). , substituted “” for “” and “$485,000,000;” for “$200,000,000.”

Pub. L. 113–93, § 201(b)(1)(C)Subsec. (g)(2)(V), (W). , added subpars. (V) and (W).

Pub. L. 113–93, § 201(b)(2)Subsec. (g)(3). , substituted “(T), or (V)” for “or (T)” in introductory provisions.

Pub. L. 112–240, § 621(b)(1)2013—Subsec. (g)(2)(S), (T). , added subpars. (S) and (T).

Pub. L. 113–67Subsec. (g)(2)(U). added subpar. (U).

Pub. L. 112–240, § 621(b)(2)Subsec. (g)(3). , substituted “(R), or (T)” for “or (R)” in introductory provisions.

Pub. L. 112–96, § 3101(b)(1)2012—Subsec. (g)(2)(Q), (R). , substituted “, the total allocation amount is $450,000,000; and” for “, the total allocation amount is $150,000,000.” in subpar. (Q) and added subpar. (R).

Pub. L. 112–96, § 3101(b)(2)Subsec. (g)(3). , substituted “(P), or (R)” for “or (P)” in introductory provisions.

Pub. L. 112–782011—Subsec. (g)(2)(Q). added subpar. (Q).

Pub. L. 111–127, § 3(1)2010—Subsec. (g)(2)(M). , substituted “$462,500,000” for “$412,500,000”.

Pub. L. 111–127, § 3(2)Subsec. (g)(2)(N). , substituted “$165,000,000” for “$150,000,000”.

Pub. L. 111–309, § 110(b)(1)Subsec. (g)(2)(O), (P). , added subpars. (O) and (P).

Pub. L. 111–309, § 110(b)(2)Subsec. (g)(3). , substituted “(N), or (P)” for “or (N)” in introductory provisions.

Pub. L. 111–5, § 5005(b)(1)2009—Subsec. (g)(2)(M), (N). , added subpars. (M) and (N).

Pub. L. 111–5, § 5005(b)(2)Subsec. (g)(3). , substituted “(L), or (N)” for “or (L)” in introductory provisions.

Pub. L. 110–379, § 2(1)2008—Subsec. (g)(2)(I). , substituted “$315,000,000” for “$300,000,000”.

Pub. L. 110–275, § 111(b)(1)(B)(i), (ii), substituted “September 30” for “June 30” and “$300,000,000” for “$200,000,000”.

Pub. L. 110–379, § 2(2)Subsec. (g)(2)(J). , substituted “$130,000,000” for “$100,000,000”.

Pub. L. 110–275, § 111(b)(1)(A), (B)(iii), (C), added subpar. (J).

Pub. L. 110–275, § 111(b)(1)(C)Subsec. (g)(2)(K), (L). , added subpars. (K) and (L).

Pub. L. 110–275, § 111(b)(2)Subsec. (g)(3). , substituted “(H), (J), or (L)” for “or (H)” in introductory provisions.

Pub. L. 110–90, § 3(b)(1)2007—Subsec. (g)(2)(H). , added subpar. (H).

Pub. L. 110–173Subsec. (g)(2)(I). added subpar. (I).

Pub. L. 110–90, § 3(b)(2)Subsec. (g)(3). , substituted “(F), or (H)” for “or (F)” in introductory provisions.

Pub. L. 109–91, § 101(b)(1)2005—Subsec. (g)(2)(D) to (G). , added subpars. (D) to (G).

Pub. L. 109–91, § 101(b)(2)Subsec. (g)(3). , inserted “, (D), or (F)” after “subparagraph (B)” in introductory provisions.

Pub. L. 108–4482004—Subsec. (g). amended heading and text of subsec. (g) generally. Prior to amendment, text read as follows: “With respect to the period that begins on , and ends on , a State shall select qualifying individuals, and provide such individuals with assistance, in accordance with the provisions of this section as in effect with respect to calendar year 2003, except that for such purpose—

“(1) references in the preceding subsections of this section to ‘fiscal year’ and ‘calendar year’ shall be deemed to be references to such period; and

“(2) the total allocation amount under subsection (c) of this section for such period shall be $300,000,000.”

Pub. L. 108–89, § 401(b)(1)2003—Subsec. (c)(1)(E). , substituted “each of fiscal years 2002 and 2003” for “fiscal year 2002”.

Pub. L. 108–89, § 401(b)(2)section 1396a(a)(10)(E)(iv) of this titleSubsec. (c)(2)(A). , substituted “the total number of individuals described in in the State; to” for “the sum of—

section 1396a(a)(10)(E)(iv)(I) of this title“(i) twice the total number of individuals described in in the State, and

section 1396a(a)(10)(E)(iv)(II) of this title“(ii) the total number of individuals described in in the State; to”.

Pub. L. 108–173, § 103(f)(2)(A)Subsec. (g). , substituted “” for “” in introductory provisions.

Pub. L. 108–89, § 401(c), added subsec. (g).

Pub. L. 108–173, § 103(f)(2)(B)Subsec. (g)(2). , substituted “$300,000,000” for “$100,000,000”.

Pub. L. 106–1131999—Subsec. (b)(4). inserted “a” after “for a month in”.

Statutory Notes and Related Subsidiaries

Effective Date of 2007 Amendment

Pub. L. 110–90section 3(c) of Pub. L. 110–90section 1396a of this titleAmendment by effective as of , see , set out as a note under .

Effective Date of 2005 Amendment

Pub. L. 109–91section 101(c) of Pub. L. 109–91section 1396a of this titleAmendment by effective , see , set out as a note under .

Effective Date of 2003 Amendment

Pub. L. 108–173section 103(f)(3) of Pub. L. 108–173section 1396a of this titleAmendment by applicable to calendar quarters beginning on or after , see , set out as a note under .