FamilyCare Act of 2003

FamilyCare Act of 2003 - Renames the State Children's Health Insurance program (SCHIP) under title XXI of the Social Security Act (SSA) as the FamilyCare program to provide for: (1) FamilyCare coverage of parents and pregnant women under Medicaid (SSA title XIX) as well as under new SSA title XXI; (2) optional FamilyCare coverage of parents of targeted low-income children or targeted low-income pregnant women; (3) automatic eligibility for FamilyCare coverage of children born to a parent or pregnant women on FamilyCare assistance; (4) optional coverage of legal immigrants and of children through age 20 under Medicaid and FamilyCare; (5) application of simplified FamilyCare procedures under Medicaid; (6) elimination of the 100 hour rule and other SSA title IV part A (Temporary Assistance for Needy Families) (TANF) related eligibility restrictions under Medicaid; (7) limitations on specified conflicts of interests under Medicaid and FamilyCare; (8) an increased FamilyCare allotment for FY 2004 through 2011; and (9) a limitation on cost-sharing to 2.5 percent for families with income below 150 percent of the poverty level.

Directs the Secretary of Health and Human Services to establish a program to award grants to States to allow them to demonstrate the effectiveness of innovative ways to increase access to health insurance through market reforms and other innovative means.

Authorizes the Secretary to award demonstration grants to up to seven States (or other qualified entities) to conduct innovative programs designed to improve outreach to enroll homeless individuals and families and provide them services under specified programs for the homeless (including Medicaid and FamilyCare).