Children’s Health Insurance Program Financing Refresher

By Martha Heberlein

Buried after a discussion of funding the new adult group and eligibility for former foster care youth, are some FAQs that got me thinking about CHIP financing – a subject seemingly forgotten since the days right after the 2009 reauthorization. But as is evident by the questions, CMS and states are thinking about the impacts of the Affordable Care Act on CHIP financing in the years ahead.

As you surely know, the ACA extended CHIP funding trough FY 2015. However, as the FAQ reminds us, 2015 allotments will continue to be available through September 30, 2016. As laid out in CHIPRA, allotments can be used for two years (which is why a state can use its FY 2015 allotment in both FY 2015 and FY 2016). After that, any unspent funds are redistributed to “shortfall” states (those with projected CHIP spending that exceeds the funds available to them from all other sources – i.e., current year allotment, unspent funds from the prior year’s allotment, and contingency funds).

While it’s unclear how much of a state’s FY 2015 allotment will be left in FY 2016 (especially, with the 23 percentage point “bump” increasing states’ matching rates beginning in FY 2016), it’s good to remember that CHIPRA built in the flexibility to use available funds to maintain ongoing coverage.

And in case you’re interested, there’s also some helpful clarification on which children are eligible for the enhanced FMAP, including uninsured stair-step kids and those who are eligible for CHIP as a result of the MAGI conversion or the application of 5pp of the FPL disregard.

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