States Prepare For Losing CHIP Funding Despite Reassurances From Congress

Inside Health Policy

States have started preparing in case federal funds for the Children’s Health Insurance Program run out, the National Academy for State Health Policy said, and CMS recently discussed CHIP contingency plans with state officials, though states received assurances of bipartisan support for CHIP by Senate Finance Chair Orrin Hatch (R-UT) and ranking Democrat Ron Wyden (OR). CHIP federal funding expires Oct. 1, and most state budgets for next year count on the federal funds, so CMS and state officials have discussed back-up plans, such as moving children into exchange or Medicaid coverage, NASHP said, and state officials are determining when to notify families that CHIP coverage is in jeopardy.

Elisabeth Burak, with the Georgetown Center for Children and Families, said CHIP funding could either provide lawmakers with a bipartisan win, or it could be accompanied by legislation that is potentially damaging to children and families. It’s hard to predict how funding for CHIP will play out, Burak said, but the senators’ statement is a positive sign.

Burak said it would be responsible for CMS to work with states on contingency planning options in light of the current uncertainty on CHIP funding.

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