A bill to amend title XIX of the Social Security Act to permit States to limit medicaid eligibility with respect to individuals who dispose of resources.

Amends title XIX (Medicaid) of the Social Security Act to authorize a State to declare an individual ineligible for Medicaid for specified periods if within 24 months of applying for such benefits the individual disposed of resources which, if retained, would have caused the individual to be ineligible for such benefits. Sets forth guidelines for determining the length of time such benefits shall be denied, based upon the dollar amount of assets disposed.

Authorizes a State to recover from an individual who was provided Medicaid benefits during a period when such individual should not have received such benefits because of the individual's disposal of assets.