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Page 13 – CMCS Informational Bulletin the time services were received had they applied. For separate CHIPs, any period of retroactive eligibility is optional. Section 71112 amends sections 1902(a)(34) and 1905(a) of the Act to shorten the retroactive eligibility period in Medicaid. Effective for applications made on or after January 1, 2027, the retroactive eligibility period for individuals enrolled in the Medicaid adult group under section 1902(a)(10)(A)(i)(VIII) of the Act will be limited to one month prior to the month of application. For all other individuals, that is, those not enrolled in the Medicaid adult group under section 1902(a)(10)(A)(i)(VIII) of the Act, the retroactive eligibility period will be limited to two months prior to the month of application. This provision also makes similar amendments to CHIP at section 2102(b)(1)(B) of the Act by adding a new paragraph (vi), where states retain the option to provide retroactive eligibility, but cannot begin the coverage any earlier than two months prior to the month of application. The CHIP amendments will also be effective for applications made on or after January 1, 2027. Sections 1902(a)(34), 1905(a), and 2102(b)(1)(B) of the Act, as amended by section 71112, are applicable to all states, the District of Columbia, and the territories. Section 71113. Federal Payments to Prohibited Entities Section 71113 prohibits federal Medicaid funding for items and services furnished during the 1- year period beginning July 4, 2025, by a “prohibited entity,” defined as an entity that meets the below four conditions as of October 1, 2025, along with such an entity’s affiliates, subsidiaries, successors, and clinics. The four conditions are as follows: 1) The entity is a nonprofit organization described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of that Code. 2) The entity is an essential community provider31 primarily engaged in family planning services, reproductive health, and related medical care. 3) The entity provides for abortions other than an abortion if the pregnancy is the result of an act of rape or incest, or in the case where a woman suffers from a physical disorder, physical injury, or physical illness, including a life-endangering physical condition caused by or arising from the pregnancy itself, that would, as certified by a physician, place the woman in danger of death unless an abortion is performed. 4) The total amount of federal and state32 Medicaid expenditures for medical assistance furnished in fiscal year 2023 made directly or by a “covered organization”33 to the entity 31 As described in regulations at 45 CFR § 156.235, as in effect on July 4, 2025, the date of enactment of the WFTC legislation. 32 “State” includes the states, the District of Columbia, and the territories (American Samoa, Guam, the Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands). See section 71113(b)(4) of the WFTC legislation (referencing section 1101 of the Act). 33 A “covered organization” is a managed care organization, primary care case manager, prepaid inpatient health plan or a prepaid ambulatory health plan as defined in 42 CFR § 438.2.