(a) Extension of Demonstration-

(1) IN GENERAL- Section 6071(h) of the Deficit Reduction Act of 2005 (42 U.S.C. 1396a note) is amended--

(A) in paragraph (1)(E), by striking ‘fiscal year 2011’ and inserting ‘each of fiscal years 2011 through 2016’; and

(B) in paragraph (2), by striking ‘2011’ and inserting ‘2016’.

(2) EVALUATION- Paragraphs (2) and (3) of section 6071(g) of such Act is amended are each amended by striking ‘2011’ and inserting ‘2016’.

(b) Reduction of Institutional Residency Period-

(1) IN GENERAL- Section 6071(b)(2) of the Deficit Reduction Act of 2005 (42 U.S.C. 1396a note) is amended--

(A) in subparagraph (A)(i), by striking ‘, for a period of not less than 6 months or for such longer minimum period, not to exceed 2 years, as may be specified by the State’ and inserting ‘for a period of not less than 90 consecutive days’; and

(B) by adding at the end the following:

‘Any days that an individual resides in an institution on the basis of having been admitted solely for purposes of receiving short-term rehabilitative services for a period for which payment for such services is limited under title XVIII shall not be taken into account for purposes of determining the 90-day period required under subparagraph (A)(i).’.

(2) EFFECTIVE DATE- The amendments made by this subsection take effect 30 days after the date of enactment of this Act.