To amend title XIX of the Social Security Act to add a Medicaid State plan requirement with respect to the determination of residency of certain individuals serving in the Armed Forces.

The bill title changed from 'determining residency of military families' to 'determining residency and coverage for military families,' reflecting that the bill now addresses both residency determination and actual coverage/payment obligations.

A new defined term 'active duty relocated individual' expands who is covered to include: (1) active duty members temporarily relocated, (2) former active duty members (including retirees) who were relocated within the preceding 1-year period, and (3) dependents of either group. The original version only covered individuals currently serving on active duty.

A new requirement that if a relocated individual was on a home and community-based services waiting list at the time of relocation, the state must keep them on that list until an assessment is completed and a decision rendered (with fair hearing rights if denied) or until the individual elects to be removed. The original version only addressed individuals already receiving such services.

A new requirement that states must make payment for medical assistance furnished to the active duty relocated individual in the temporary relocation state, with guidance from the Secretary to ensure access. The original version only required a residency determination without an explicit payment obligation.

A new subsection (uu) adds formal definitions for 'active duty relocated individual' and 'home and community-based services waiting list.' The latter is defined as a list maintained by states that have caps on HCBS under section 1115(a) or 1915(c), where the state has not yet completed an assessment when a slot becomes available.

The amendment structure was reorganized from amending Section 1902(a) directly to amending Section 1902 with two parts: subsection (a) for the paragraph-level changes and a new subsection (uu) for definitions. The residency deeming provision now references federal regulation 42 CFR 435.403(j)(3) explicitly, characterizing the relocation as a 'temporary absence' under that rule.