Title IV, SEC. 4201. LIMITING COVERAGE UNDER MEDICAID OF ITEMS AND SERVICES 
COVERED UNDER COMPREHENSIVE BENEFIT PACKAGE. 
      (a) Removal of Comprehensive Benefits Package from State Plan. Title XIX 
    is amended by redesignating section 1931 as section 1932 and by inserting 
    after section 1930 the following new section: 

    ``treatment of comprehensive benefit package under health security act 

      ``Sec. 1931. (a) Items and Services Covered Under Comprehensive Benefit 
    Package. If a State plan for medical assistance under this title provides 
    for payment in accordance with section 1902(a)(63) for a year, 
    notwithstanding any other provision of this title, the State plan under 
    this title is not required to provide medical assistance consisting of 
    payment for items and services in the comprehensive benefit package under 
    subtitle B of title I of the Health Security Act for alliance eligible 
    individuals (as defined in section 1902(5) of such Act). 

      ``(b) Construction. (1) Payment under section 1902(a)(63) shall not 
    constitute medical assistance for purposes of section 1903(a). 

      ``(2) This section shall not be construed as affecting the provision of 
    medical assistance under this title for items and services included in the 
    comprehensive benefit package for 

      ``(A) medicare-eligible individuals, or 

      ``(B) certain emergency services to certain aliens under section 
    1903(v)(2).''. 

      (b) Substitute Requirement of State Payment. Section 1902(a) (42 U.S.C. 
    1396a(a)) is amended 

        (1) by striking ``and'' at the end of paragraph (61), 

        (2) by striking the period at the end of paragraph (62) and inserting 
      ``; and'', and 

        (3) by inserting after paragraph (62) the following new paragraph: 

        ``(63) provide for payment to regional alliances of the amounts 
      required under part 1 of subtitle C of title VI of such Act.''. 

      (c) No Federal Financial Participation. Section 1903(i) (42 U.S.C. 
    1396b(i)) is amended 

        (1) by striking ``or'' at the end of paragraph (14), 

        (2) by striking the period at the end of paragraph (15) and inserting 
      ``; or'', and 

        (3) by inserting after paragraph (15) the following new paragraph: 

        ``(16) with respect to items and services covered under the 
      comprehensive benefit package under subtitle B of title I of the Health 
      Security Act for alliance eligible individuals (as defined in section 
      1902(5) of such Act).''. 

      (d) Effective Date. The amendments made by this section shall apply with 
    respect to items or services furnished in a State on or after January 1 of 
    the first year (as defined in section 1902(17)) for the State.