Mothers and Newborns Health Insurance Act of 2001

Mothers and Newborns Health Insurance Act of 2001 - Amends title XXI (State Children's Health Insurance) (SCHIP) of the Social Security Act (SSA) to give States, subject to specified guidelines, the authority to provide for: (1) optional coverage of pregnancy-related assistance for targeted low-income, uninsured pregnant women under the State's SCHIP plan; and (2) automatic eligibility and enrollment for child health assistance under such plan for children born to targeted low-income pregnant women receiving such assistance when the child is born until it attains one year of age, so long as the child is a member of the woman's household.

Amends SSA title XIX (Medicaid) with respect to the transitional increased Federal matching rate for increased administrative costs related to Medicaid-eligibility determinations of individuals receiving aid or assistance under SSA title IV part A (Temporary Assistance for Needy Families) (TANF).