CHIP Tips: CHIP Financing Structure

The CHIP law enacted in 2009 includes a number of important program and financing changes that affect both Medicaid and CHIP. Some of the most important changes to CHIP’s financing structure include: significant new federal funding for the CHIP program through September 30, 2013; changes in the formula for distributing CHIP funds among states; and a new option for states to decide whether to use CHIP or Medicaid funding to cover children. Taken together, the financing changes provide states with reliable federal matching funds that should be adequate to both continue and expand their CHIP programs.

This brief is part of a series that puts a spotlight on specific provisions of the CHIP law.