Removal of inmate limitation on benefits under Medicaid

(a) Removal of limitation (1) In general The subdivision (A) of section 1905(a) of the Social Security Act (42 U.S.C. 1396d(a)) following the last numbered paragraph of such section is amended by striking for an individual and all that follows through charges and inserting for any individual while in custody pending disposition of charges. (2) Effective date The amendment made by paragraph (1) shall take effect on the 1st day of the 1st calendar quarter that begins on or after the date that is 60 days after the date of the enactment of this Act and shall apply to items and services furnished for periods beginning on or after such date. (b) Conforming amendment Effective January 2, 2026, subparagraph (A) of section 1902(a)(84) of the Social Security Act (42 U.S.C. 1396a(a)(84)) is amended to read as follows: (A) the State shall not terminate eligibility for medical assistance under the State plan (or waiver of such plan) for an individual because the individual is an inmate of a public institution (as defined in subsection (nn)(3)) (or, if the State has elected the option described in the subdivision (A) following the last numbered paragraph of section 1905(a), while the individual is in custody pending disposition of charges) but, subject to subparagraph (D), may suspend coverage during the period the individual is such an inmate (or if the State has made such an election, during the period the individual is in custody pending disposition of charges);.