A bill to amend title XIX of the Social Security Act to permit States to provide outpatient medicaid coverage for certain individuals covered presently only while in nursing homes in order that they might return to their homes.

Amends Title XIX (Medicaid) of the Social Security Act to authorize any State under such Title to make medical assistance available for treatment of an individual outside a medical institution if such assistance had been provided to the individual while in such institution in order to enable the individual to leave the institution and return to a family.

States that such assistance shall be available only to a disabled individual, under the age of 65, whose income does not exceed an amount determined in accordance with standards set forth in this Act.