Provides Medicaid coverage of comprehensive tobacco cessation services for pregnant women, including both counseling and pharmacotherapy, without cost sharing.

Implements a 2.1% rate increase for under 16 bed ICF/MR facilities.

Provides for an enhanced care add-on to the per diem reimbursement rate paid 16 bed & over private facilities ICF/MR providers.

Provides for an enhanced care add-on to the per diem reimbursement rate paid under 16 bed ICF/MR providers.

Implements a one percent payment reduction for Medicaid services provided by inpatient hospital services reimbursed under the diagnosis related group prospective payment system.

Revises the payment methodology for renal dialysis physician clinic services.

Revises the prospective rate setting process for nursing facilities and intermediate care facilities for the intellectually disabled by utilizing cost reports with ending dates in CY 2010.

Adds outpatient mental health services mammography, and pelvic exams, and to make a technical correction adjust the EPSDT age limit to 21 years.

Expands eligibility for categorically related eligibles up to 100% FPG, and implements changes to eligibility for the Section 1931 group.

Provides for supplemental payments, funded by certified public expenditures, for State Veterans Homes, effective for services on and after August 1, 2006.