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More Funding for CHIP, Different Rules: How Does CHIPRA Change CHIP Funding?The Children’s Health Insurance Program (CHIP) was created in 1997 to provide affordable health coverage to low-income children in working families who make too much money to be eligible for Medicaid but not enough to afford private coverage. The program currently covers more than 7 million children. In February 2009, after a protracted political fi ght, Congress enacted, and President Obama signed, legislation that renewed CHIP through the end of 2013 and expanded its scope. This series of issue briefs examines the new provisions that were included in the reauthorization and how they will affect implementation in the coming months.The CHIP Reauthorization Act of 2009 (CHIPRA) provides significantly more federal funding for children’s health coverage and new rules for distributing these funds among the states. These provisions were developed with the wisdom gained over more than a decade of experience with CHIP, during which time two issues became clear: First, states needed significantly more funding than they were receiving to maintain and expand their CHIP programs. Second, in order to enable states to cover as many eligible children as possible, the formula that determined how funds were distributed to states needed to be changed. CHIPRA addresses both these issues. Over the next four and a half years (from mid-fiscal year 2009 through FY 2013), the federal government will have a total of $69 billion in CHIP funds to distribute among states—$25 billion in existing “baseline” funding and $44 billion in new funding (see Figure 1). The Congressional Budget Office estimates that, over the next four and a half years, the additional funding and the new outreach and enrollment tools that were included in CHIPRA will enable states to maintain coverage for the 7 million currently enrolled children and cover an additional 4.1 million uninsured children.1
This brief summarizes the new federal financing rules for CHIP, including how funding will be distributed among the states, as well as improvements to the financing system that will help ensure that states have the funding they need—when they need it—to get more children covered. These are signifi cant changes, and it is important that those who are working on children’s coverage understand them so that they can urge states to make the best possible use of the new funding that is available to cover more children in Medicaid and CHIP.
State, Original CHIP Law, New Law (CHIPRA), Increase
Alabama - $71.1, $139.5, 96% Alaska - $10.4, $22.3, 114% Arizona - $149.1, $171.2, 15% Arkansas - $50.4, $133.5, 165% California - $799.2, $1,481.2, 85% Colorado - $71.5, $97.5, 36% Connecticut - $37.7, $45.6, 21% Delaware - $13.1, $15.0, 14% District of Columbia - $12.3, $14.2, 16% Florida - $303.0, $358.4, 18% Georgia - $175.6, $294.2, 68% Hawaii - $14.6, $20.8, 42% Idaho - $23.9, $45.3, 90% Illinois - $198.7, $344.4, 73% Indiana - $94.5, $120.4, 27% Iowa - $34.1, $68.4, 101% Kansas - $37.9, $58.5, 54% Kentucky - $67.4, $119.6, 77% Louisiana - $84.1, $207.7, 147% Maine - $14.7, $39.3, 166% Maryland - $70.2, $184.2, 162% Massachusetts - $72.4, $332.6, 359% Michigan - $146.2, $203.4, 39% Minnesota - $48.6, $84.1, 73% Mississippi - $64.1, $183.7, 187% Missouri - $81.9, $129.3, 58% Montana - $14.5, $32.4, 124% Nebraska - $22.5, $41.8, 86% Nevada - $52.1, $61.4, 18% New Hampshire - $10.6, $15.9, 50% New Jersey - $102.2, $497.8, 387% New Mexico - $52.0, $196.2, 277% New York - $318.0, $391.2, 23% North Carolina - $136.1, $245.7, 81% North Dakota - $7.9, $17.1, 117% Ohio - $157.3, $293.7, 87% Oklahoma - $70.8, $144.2, 104% Oregon - $61.3, $83.4, 36% Pennsylvania - $167.0, $312.5, 87% Rhode Island - $13.2, $69.5, 426% South Carolina - $70.8, $156.0, 120% South Dakota - $10.9, $18.4, 69% Tennessee - $99.7, $138.4, 39% Texas - $549.6, $945.6, 72% Utah - $41.5, $65.4, 58% Vermont - $5.2, $6.7, 29% Virginia - $96.9, $175.6, 81% Washington - $79.9, $94.0, 18% West Virginia - $25.0, $43.3, 73% Wisconsin - $69.6, $88.5, 27% Wyoming - $6.4, $11.2, 76%
Average State Increase 96%
more at
Families USA 1201 New York Avenue NW, Suite 1100, Washington, DC 20005; Phone: 202-628-3030 E-mail: info@familiesusa.org ; www.familiesusa.org
http://www.familiesusa.org/assets/pdfs/chipra/funding.pdf
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