Prevent Prematurity and Improve Child Health Act of 2005 - Amends titles XIX (Medicaid) and XXI (State Children's Health Insurance Program) (SCHIP) of the Social Security Act (SSA) to give States new options to cover: (1) low-income pregnant women; and (2) low-income legal immigrant pregnant women and children under Medicaid and SCHIP.
Extends coverage under Medicaid of prescription drugs and counseling services to tobacco cessation medications to help pregnant women enrolled in the program quit using tobacco. Requires coverage of tobacco cessation counseling services for pregnant women, and exempts such services from cost-sharing charges. Covers tobacco cessation medications and counseling for pregnant women, also, under the Maternal and Child Health Services program under SSA title V.
Gives States the option under Medicaid to: (1) provide family planning services and supplies to individuals with incomes that do not exceed a State's income eligibility level for medical assistance; and (2) extend the postpartum period for provision of family planning services and supplies.
Gives States the option to provide wrap-around SCHIP coverage to children who have other health coverage.