A bill to require each State to ensure that individuals residing in the State are tested annually for the purpose of determining whether such individuals are infected with the etiologic agent for acquired immune deficiency syndrome.

Requires each State to ensure: (1) that State residents are tested for acquired immune deficiency syndrome (AIDS) each year; (2) the confidentiality of the test results; and (3) that individuals determined to be infected with AIDS are provided counseling.

Requires each State to report the results of such tests to the Director of the Centers for Disease Control.

Terminates payments under title XIX (Medicaid) of the Social Security Act to any State that fails to comply with the requirements of this Act.