States Increase Pressure on Congress to Renew CHIP Funding

By Sophia Duong

States are applying more pressure on Congress to take swift action to extend CHIP funding. The National Governor’s Association (NGA) is set to hold their Winter meeting this weekend, February 20-23. But before the meeting even begins, the NGA took action on CHIP by sending a strong letter to the leaders of the Senate Committee on Finance and the House Committee on Energy and Commerce urging them to act quickly to extend CHIP funding.

The NGA notes “CHIP is widely supported by governors, who recognize that access to health insurance is critical to ensuring a healthy start for our nation’s children.” The letter refers to the 42 governors who responded to Congress with overwhelming support for the extension of CHIP. (The eight that have not responded are FL, LA, ME, MO, MS, MT, NE, and NJ.)

One point that the NGA, state officials, and advocates have pressed is the urgency with which Congress needs to act to ensure certainty for states’ budgets and children’s coverage. The National Academy for State Health Policy’s recent survey of state CHIP Directors inquired about states’ timelines for implementing contingency plans if federal funding is not renewed in a timely manner for states?

The survey finds that three CHIP officials have already begun making contingency plans to be put in place if federal funding is not extended. Sixteen officials indicated they would begin making contingency plans in the coming months, with more than half noting that March-May as their timeframe for developing these plans. The contingency plans could include a number of steps such as closing off new enrollment in their CHIP programs, submitting waivers and amendments to close CHIP programs, and transitioning enrollees to different health coverage programs. If Congress doesn’t act before the critical March-May time period, states may have to implement these plans starting this summer, which could cause mass confusion and chaos for families who rely on CHIP for necessary medical care.

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