Title IV, SEC. 4212. INCREASED INCOME AND RESOURCE DISREGARDS FOR NURSING 
FACILITY RESIDENTS. 
      (a) Increased Disregards for Personal Needs Allowance; Resources. Section 
    1902(a)(10) (42 U.S.C. 1396a(a)(1)) is amended 

        (1) by striking ``and'' at the end of paragraph (F); and 

        (2) by adding at the end the following new paragraph: 

        ``(G) that, in determining the eligibility of any individual who is an 
      inpatient in a nursing facility or intermediate care facility for the 
      mentally retarded 

        ``(i) the first $70 of income for each month shall be disregarded; and 

        ``(ii) in the case of an unmarried individual, the first $12,000 of 
      resources may, at the option of the State, be disregarded;''. 

      (b) Conforming SSI Personal Needs Allowance. For provision increasing SSI 
    personal needs allowance, see section 4301. 

      (c) Federal Reimbursement for Reductions in State Funds Attributable to 
    Increased Disregard. Section 1903(a) (42 U.S.C. 1396b(a)) is amended 

        (1) by striking ``plus'' at the end of paragraph (6); 

        (2) by striking the period at the end of paragraph (7) and inserting 
      ``; plus''; and 

        (3) by adding at the end the following new paragraph: 

        ``(8) an amount equal to 100 percent of the difference between the 
      amount of expenditures made by the State for nursing facility services 
      and services in an intermediate care facility for the mentally retarded 
      during the quarter and the amount of expenditures that would have been 
      made by the State for such services during the quarter if the amendment 
      made by subsection (a) had not taken effect (as estimated by the 
      Secretary).''. 

      (d) Effective Date. The amendments made by subsection (a) shall apply 
    with respect to months beginning with January 1996.