A bill to allow State medicaid plans to provide medical assistance for institutional services for mentally retarded individuals who are not otherwise provided such assistance because they are not treated as residents of the State.

Permits a State under its Medicaid program (title XIX of the Social Security Act) to treat a nonresident mentally retarded individual who is receiving services in a nonprofit intermediate care facility as a resident for the purpose of providing medical assistance to such individual. Permits a State providing such services to such an individual to: (1) limit treatment to those individuals whose parents or guardian are residents of an adjoining State; and (2) require the parents or guardian to pay some or all of the State share.