Title IX, SEC. 9002. NON-CASH BASELINE AMOUNTS. 
      (a) Baseline Amounts. 

        (1) Non-dsh amount. The Secretary shall determine a non-cash, non-DSH 
      baseline amount which is equal to the sum of the following: 

          (A) Expenditures for comprehensive benefit package for non-cash 
        assistance children. The aggregate State medicaid expenditures in 
        fiscal year 1993 (as defined in subsection (b)(1)) for the 
        comprehensive benefit package for non-cash assistance children (as 
        defined in section 9004(a)). 

          (B) Expenditures for comprehensive benefit package for non-cash 
        assistance adults. The aggregate State medicaid expenditures in fiscal 
        year 1993 for the comprehensive benefit package for non-cash assistance 
        adults (as defined in section 9004(b)). 

          (C) Expenditures for additional benefits for certain children. The 
        aggregate medicaid expenditures in fiscal year 1993 for all medically 
        necessary items and services described in section 1905(a) (including 
        items and services described in section 1905(r) but excluding long-term 
        care services described in section 1933(c)) for qualified children 
        described in section 1934(b)(1). 

        (2) DSH amount. The Secretary shall determine a non-cash, DSH baseline 
      amount which is equal to the DSH expenditures in fiscal year 1993 (as 
      defined in subsection (b)(2)). 

      (b) State Medicaid Expenditures and DSH Expenditures Defined. 

        (1) Aggregate state medicaid expenditures. 

          (A) In general. In this section, the term ``aggregate State medicaid 
        expenditures'' means, with respect to specified individuals and a State 
        in fiscal year 1993, the amount of payments under the State medicaid 
        plan with respect to medical assistance furnished for such individuals 
        for calendar quarters in fiscal year 1993, less the amount of Federal 
        financial participation paid to the State with respect to such 
        assistance, and not including any DSH expenditures. 

          (B) Limited to payments for services. In applying subparagraph (A), 
        payments under the State medicaid plan shall not be included unless 
        Federal financial participation is provided with respect to such 
        payments under section 1903(a)(1) of the Social Security Act and such 
        payments shall not include payments for medicare cost-sharing (as 
        defined in section 1905(p)(3) of the Social Security Act). 

        (2) DSH expenditures. In this section, the term ``DSH expenditures'' 
      means, with respect to fiscal year 1993, payments made under section 1923 
      of the Social Security Act in fiscal year 1993 multiplied by proportion 
      of payments for medical assistance for hospital services (including 
      psychiatric hospital services) under the State medicaid plan in fiscal 
      year 1993 that is attributable to non-cash assistance adults and non-cash 
      asssistance children. 

        (3) Adjustment authorized to take into account cash flow variations. If 
      the Secretary finds that a State took an action that had the effect of 
      shifting the timing of medical assistance payments under the State 
      medicaid plan between quarters or fiscal years in a manner so that the 
      payments made in fiscal year 1993 do not accurately reflect the value of 
      the medical assistance provided with respect to items and services 
      furnished in that fiscal year, the Secretary may provide for such 
      adjustment in the amounts computed under this subsection as may be 
      necessary so that the non-cash baseline amounts determined under this 
      section accurately reflects such value. 

        (4) Treatment of disallowances. The amounts determined under this 
      subsection shall take into account amounts (or an estimate of amounts) 
      disallowed. 

      (c) Application to Particular Items and Services in Comprehensive Benefit 
    Package. For purposes of subsection (a)(1), in determining the aggregate 
    State medicaid expenditures for a category of items and services (within 
    the comprehensive benefit package) furnished in a State, there shall be 
    counted only that proportion of such expenditures that were attributable to 
    items and services included in the comprehensive benefit package (taking 
    into account any limitation on amount, duration, or scope of items and 
    services included in such package).