A bill to require the Secretary of Health and Human Services to approve up to 4 State waivers to allow a State to use its allotment under the State children's health insurance program under title XXI of the Social Security Act to increase the enrollment of children eligible for medical assistance under the medicaid program under title XIX of such Act.

Children's Health Equity Act of 2001 - Directs the Secretary of Health and Human Services to approve not more than four waiver applications to allow a State to use its allotment under the State children's health insurance programs (SCHIP) under title XXI of the Social Security Act to increase the enrollment of children eligible for medical assistance under the Medicaid program under title XIX of such Act.