Infant Mortality Reduction and Child Health Act of 1986

Infant Mortality Reduction and Child Health Act of 1986 - Amends title XIX (Medicaid) of the Social Security Act to give States the option of extending coverage to women in need of pregnancy-related medical services and children up to age six whose family income exceeds current income eligibility thresholds, but does not exceed a State maximum income level to be established at or below the Federal poverty level. Leaves to each State's discretion the decision as to whether a resource standard shall be applied in determining the eligibility of such women and children. Prohibits States which provide coverage pursuant to this Act from reducing Aid to Families with Dependent Children (AFDC) payment levels after enactment of this Act.