PUBLIC LAW 106-170—DEC. 17, 1999 113 STAT. 1899 (B) LIMITATION ON PAYMENTS. — In no case may— (i) the aggregate amount of payments made by the Secretary to States under this section exceed $250,000,000; (ii) the aggregate amount of payments made by the Secretary to States for administrative expenses relating to annual reports required under subsection (d) exceed $2,000,000 of such $250,000,000; or (iii) payments be provided by the Secretary for a fiscal year after fiscal year 2009. (C) FUNDS ALLOCATED TO STATES.—The Secretary shall allocate funds to States based on their applications and the availability of funds. Funds allocated to a State under a grant made under this section for a fiscal year shall remain available until expended. (D) FUNDS NOT ALLOCATED TO STATES.—Funds not allocated to States in the fiscal year for which they are appropriated shall remain available in succeeding fiscal years for allocation by the Secretary using the allocation formula established under this section. (E) PAYMENTS TO STATES.— The Secretary shall pay to each State with a demonstration project approved under this section, from its allocation under subparagraph (C), an amount for each quarter equal to the Federal medical assistance percentage (as defined in section 1905(b) of the Social Security Act (42 U.S.C. 1395d(b)) of expenditures in the quarter for medical assistance provided to workers with a potentially severe disability. (d) ANNUAL REPORT.—A State with a demonstration project approved under this section shall submit an annual report to the Secretary on the use of funds provided under the grant. Each report shall include enrollment and financial statistics on— (1) the total population of workers, with potentially severe disabilities served by the demonstration project; and (2) each population of such workers with a specific physical or mental impairment described in subsection (b)(1)(B) served by such project. (e) RECOMMENDATION. — Not later than October 1, 2004, the Deadline. Secretary shall submit a recommendation to the Committee on Commerce of the House of Representatives and the Committee on Finance of the Senate regarding whether the demonstration project established under this section should be continued after fiscal year 2006. (f) STATE DEFINED. —In this section, the term "State" has the meaning given such term for purposes of title XIX of the Social Security Act (42 U.S.C. 1396 et seq.). SEC. 205. ELECTION BY DISABLED BE^fEFICLARIES TO SUSPEND MEDIGAP INSURANCE WHEN COVERED UNDER A GROUP HEALTH PLAN. (a) IN GENERAL.—Section 1882(q) of the Social Security Act (42 U.S.C. 1395ss(q)) is amended— (1) in paragraph (5)(C), by inserting "or paragraph (6)" after "this paragraph"; and (2) by adding at the end the following new paragraph: "(6) Each medicare supplemental policy shall provide that benefits and premiums under the policy shall be suspended
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