Cantwell: Washington State Kids Poised to Win "Fair Share" of CHIP
Nearly $100 Million For Health Care Will Head to State From Senate Passage of Cantwell's CHIP Fix
WASHINGTON, DC – This week, the U.S. Senate is poised to pass an extension of the Children’s Health Insurance Program (CHIP), which includes a “fair share fix” secured by Senator Maria Cantwell (D-WA) to get more Washington state children access to quality affordable health care. Under Cantwell’s fix, which she got passed by the Senate twice in the last Congress only to have the president’s veto prevent it from taking effect, Washington state will receive and be able to use more federal money to provide health care for vulnerable low-income children.
CHIP provides health insurance to children living in families not poor enough to qualify for Medicaid, but still unable to afford private health insurance. Under current law, Washington state receives $79.9 million in CHIP funding; under the fix that Cantwell secured, the state will receive a projected $94 million. For the first time since CHIP was created, Washington will have full access to its fair share of the program’s funding. CHIP rules have previously prevented Washington from using its allocation to cover the thousands of remaining uninsured low-income children who would have otherwise been eligible and so Washington has been forced to hand back almost $200 million since the program’s creation in 1997—all of it money the state could have used to cover uninsured children. For the first time since CHIP was created, Washington will have full access to its fair share of the program's funding and be able to help more Washington children.
- Formulas for allotting federal funds to states are improved to more accurately reflect changes in projected spending for each state
- Funding for outreach and enrollment efforts
- Bonus payments to states for enrolling lowest-income children for health coverage
- Contingency fund to protect states from shortfalls in unforeseen emergencies, and to provide bonus funding for enrollment of lowest-income children for health coverage
- Maintains focus on those most in need by providing the Medicaid level of federal funding for children in families above 300 percent of federal poverty level, rather than the higher level of federal funding that is offered to children in lower income levels under CHIP
- States can use information from food stamp programs and other initiatives for low-income families to find and enroll eligible children
- Reduces barriers to help employers offer CHIP and Medicaid funded health coverage to the children of eligible employees
- Options to cover pregnant women for prenatal care
- Funds for existing coverage of low-income parents will transition to a lower federal matching rate
- Childless adults will be moved out of CHIP
- New waivers for additional adult coverage in CHIP will not be permitted
- Funding of $31.5 billion, changed from $35 billion in 2007 to reflect budgetary changes
- Reauthorization for a period of four and a half years (through September 2013) rather than five years as proposed in 2007. This will align CHIP reauthorization with the federal fiscal year
- Targets the bonus system used to encourage states to enroll eligible individuals at Medicaid, where it is most effective, instead of at both Medicaid and CHIP
- Slight revisions to the tobacco tax increases
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