A bill to amend title XIX of the Social Security Act to give States flexibility in establishing the medicaid eligibility of certain children between the ages of 18 and 21.

Amends Title XIX (Medicaid) of the Social Security Act to permit States to provide medical assistance to: (1) dependent children under Title IV part A (Aid to Families with Dependent Children) or individuals who would, if needy, qualify as dependent children; (2) individuals who otherwise qualify as dependent children but do not meet certain age and school attendance requirements; (3) individuals who meet certain age requirements established by a State in its approved Medical plan; or (4) individuals who fall within such reasonable classifications as the Secretary of Health, Education, and Welfare prescribes.