A bill to amend title XIX of the Social Security Act to repeal the requirement for annual resident review for nursing facilities under the Medicaid program and to require resident reviews for mentally ill or mentally retarded residents when there is a significant change in physical or mental condition.

Amends title XIX (Medicaid) of the Social Security Act to repeal the requirement for annual resident review for mentally ill and mentally retarded nursing facility residents, and instead require a review in case of a significant change in the physical or mental condition of such a resident, as well as an appropriate, prompt notification to the applicable State authority after such change.