; and (C) by inserting after paragraph (34) the following: (35) provide that, except as provided in section 1902(a)(25)(F)(ii), the State shall not use the State program operated under this part to collect any amount owed to the State by reason of costs incurred under the State plan approved under title XIX for the birth of a child for whom support rights have been assigned pursuant to section 1912. . (2) Rule of construction Nothing in section 454(35) of such Act, as added by paragraph (1), shall be construed as affecting the application of section 1902(a)(25) of such Act ( 42 U.S.C. 1396a(a)(25) ) with respect to a State (relating to the State Medicaid plan requirement for the State to take all reasonable measures to ascertain the legal liability of third parties to pay for care and services available under the plan). (b) Clarification that ban on recovery does not apply with respect to insurance of a parent with an obligation To pay child support Clause (ii) of section 1902(a)(25)(F) of the Social Security Act ( 42 U.S.C. 1396a(a)(25)(F) ) is amended by inserting only if such third-party liability is derived through insurance, before seek . (c) Effective date (1) In general Except as provided in paragraph (2), the amendments made by this section take effect on October 1, 2017. (2) Extension of effective date for state law amendment In the case of a State plan under title XIX of the Social Security Act which the Secretary of Health and Human Services determines requires State legislation in order for the plan to meet the additional requirements imposed by the amendments made by this section, the State plan shall not be regarded as failing to comply with the requirements of such title solely on the basis of its failure to meet these additional requirements before the first day of the first calendar quarter beginning after the close of the first regular session of the State legislature that begins after the date of enactment of this Act. For purposes of the previous sentence, in the case of a State that has a