Prevent Prematurity and Improve Child Health Act of 2003

Prevent Prematurity and Improve Child Health Act of 2003 -Amends title XIX (Medicaid) and XXI (State Children's Health Insurance) (SCHIP) of the Social Security Act to give States the option to expand or add coverage of certain pregnant women under Medicaid and SCHIP and to provide optional coverage of legal immigrants under such programs.

Extends coverage under Medicaid of prescription drugs and counseling services to tobacco cessation medications to help pregnant women enrolled in the program quit using tobacco. Requires coverage of tobacco cessation counseling services for pregnant women, and exempts such services from cost-sharing charges. Covers tobacco cessation medications and counseling for pregnant women, also, under the Maternal and Child Health Services program under SSA title V.

Gives States the option under Medicaid of: (1) providing family planning services and supplies to individuals with incomes that do not exceed a State's income eligibility level for medical assistance; and (2) extending the postpartum period for provision of family planning services and supplies.

Gives States the option of providing wrap-around SCHIP coverage to children who have other health coverage.

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