; (B) for the calendar quarter beginning on the July 1 occurring during such fiscal year, 1.0 percentage point; and (C) for the calendar quarter beginning on the October 1 occurring during the subsequent fiscal year, 1.5 percentage points. (5) Payment in case of reporting State The expenses incurred by a non-expansion State, with respect to any calendar quarter with respect to a fiscal year (beginning with 2021), for carrying out subparagraphs (A) through (C) of paragraph (2) shall, for purposes of section 1903(a)(7), be considered to be expenses necessary for the proper and efficient administration of the State plan under this title. (6) Nonexpanion State defined For purposes of this subsection, the term nonexpansion State means, with respect to a fiscal year, a State that as of the first quarter of such fiscal year does not provide under the State plan of such State (or waiver of such plan) for making medical assistance available in accordance with section 1902(k)(1) to all individuals described in section 1902(a)(10)(i)(VIII). .