(a) Increase in Limit on Payments- Section 1108(g) of the Social Security Act (42 U.S.C. 1308(g)) is amended--

(1) in paragraph (2), in the matter preceding subparagraph (A), by striking ‘paragraph (3)’ and inserting ‘paragraphs (3) and (5)’;

(2) in paragraph (4), by striking ‘and (3)’ and inserting ‘(3), and (4)’; and

(3) by adding at the end the following paragraph:

‘(5) FISCAL YEAR 2011 AND THEREAFTER- The amounts otherwise determined under this subsection for Puerto Rico, the Virgin Islands, Guam, the Northern Mariana Islands, and American Samoa for the second, third, and fourth quarters of fiscal year 2011, and for each fiscal year after fiscal year 2011 (after the application of subsection (f) and the preceding paragraphs of this subsection), shall be increased by 30 percent.’.

(b) Disregard of Payments for Mandatory Expanded Enrollment- Section 1108(g)(4) of such Act (42 U.S.C. 1308(g)(4)) is amended--

(1) by striking ‘to fiscal years beginning’ and inserting ‘to--

‘(A) fiscal years beginning’;

(2) by striking the period at the end and inserting ‘; and’; and

(3) by adding at the end the following:

‘(B) fiscal years beginning with fiscal year 2014, payments made to Puerto Rico, the Virgin Islands, Guam, the Northern Mariana Islands, or American Samoa with respect to amounts expended for medical assistance for newly eligible (as defined in section 1905(y)(2)) nonpregnant childless adults who are eligible under subclause (VIII) of section 1902(a)(10)(A)(i) and whose income (as determined under section 1902(e)(14)) does not exceed (in the case of each such commonwealth and territory respectively) the income eligibility level in effect for that population under title XIX or under a waiver on the date of enactment of the Patient Protection and Affordable Care Act, shall not be taken into account in applying subsection (f) (as increased in accordance with paragraphs (1), (2), (3), and (5) of this subsection) to such commonwealth or territory for such fiscal year.’.

(c) Increased FMAP-

(1) IN GENERAL- The first sentence of section 1905(b) of the Social Security Act (42 U.S.C. 1396d(b)) is amended by striking ‘shall be 50 per centum’ and inserting ‘shall be 55 percent’.

(2) EFFECTIVE DATE- The amendment made by paragraph (1) takes effect on January 1, 2011.