1. Short title This Act may be cited as the Advancing Care for Exceptional Kids Act or the ACE Kids Act . 2. Establishment of State Medicaid option to provide coordinated care through a health home for children with complex medical conditions Title XIX of the Social Security Act ( 42 U.S.C. 1396 et seq.) is amended by adding at the end the following new section: 1947. State option to provide coordinated care through a health home for children with complex medical conditions (a) In General Notwithstanding section 1902(a)(1) (relating to statewideness), section 1902(a)(10)(B) (relating to comparability), section 1902(a)(23) (relating to freedom of choice), section 1902(a)(30)(A) (relating to equal access), and any other provision of this title which the Secretary determines it is necessary to waive in order to implement this section (other than section 1905(a)(4)(B) (relating to early and periodic screening, diagnostic, and treatment services)), beginning on January 1, 2018, a State, at its option as a State plan amendment, may provide for medical assistance under this title to children with medically complex conditions who select (or for whom is selected) a designated provider, or a team of health care professionals, as the individual’s health home for purposes of providing such children with health home services. (b) Payments (1) In general A State shall provide, with respect to health home services furnished to each child with medically complex conditions who selects or for whom there is selected a designated provider or a team as the child’s health home pursuant to this section, to such designated provider or team with payments for the provision of such health home services. The State shall make such payments regardless of whether a child with medically complex conditions described in the preceding sentence receives health home services under this section through a fee-for-service or managed care system. Such payments for such services shall be treated as medical assistance (as defined in section 1905(a)) for