Mothers and Newborns Health Insurance Act of 2002

Mothers and Newborns Health Insurance Act of 2002 - Amends titles XIX (Medicaid) and XXI (State Children's Health Insurance) (SCHIP) of the Social Security Act (SSA) to give States the authority to: (1) elect to establish an income level greater than 185 percent of the official poverty line applicable to a family of the size involved for purposes of expanding coverage of medical assistance to pregnant women in a family the income of which exceeds 185 percent of the poverty line, but does not exceed the income eligibility level established under SCHIP for a targeted low-income child; and (2) provide for coverage of pregnancy-related assistance for targeted low-income pregnant women if the State has established an income eligibility level for pregnant women under Medicaid that is at least 185 percent of the official poverty line and the State meets certain conditions for enhanced matching funds under Medicaid.

Provides for enhanced matching funds under Medicaid with respect to pregnant women in a family the income of which exceeds 185 percent of the poverty line, but does not exceed the income eligibility level established under SCHIP for a targeted low-income child, if the State does not: (1) provide coverage under Medicaid and SCHIP for such women with higher family income without covering pregnant women with a lower family income; and (2) apply an effective income level for pregnant women that is lower than the effective income level specified under the State Medicaid plan as of January 1, 2002, to be eligible for medical assistance as a pregnant woman.

Provides for payment for Medicaid expansion costs out of the SCHIP allotment. Eliminates counting Medicaid child presumptive eligibility costs against such allotment.

Provides for automatic enrollment under SCHIP for children born to women receiving pregnancy-related assistance under SCHIP.

Makes appropriations for FY 2003 through 2006 for the purpose of providing additional allotments to States under SCHIP. Provides that such allotments are available for amounts expended on or after October 1, 2002, for child health assistance for targeted low-income children, as well as for pregnancy-related assistance for targeted low-income pregnant women.

Modifies the eligibility criteria for a newborn, removing the requirement that to receive medical assistance under Medicaid the child must be a member of the woman's household and the woman must remain eligible for such assistance.

Amends SSA title XVI (Supplemental Security Income) to direct the Commissioner of Social Security to review State agency blindness or disability determinations before any action is taken to implement the determination.