Recommendations for the Future of CHIP and Children’s Coverage

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March 2017

Chapter 1 presents MACPAC’s recommendations to Congress on the future of CHIP and children’s coverage. Enacted in 1997 with strong bipartisan support, CHIP is state-administered within federal parameters and jointly financed by states and the federal government.

Although CHIP’s authorization does not expire, without congressional action states will not receive any new federal funds for CHIP beyond September 30, 2017. If CHIP funding is not extended, millions of low- and moderate-income children would face the prospect of having to find other coverage at a time of uncertainty around the stability and availability of other sources of coverage.

The package of nine recommendations is built around a core recommendation to extend federal funding for CHIP through fiscal year (FY) 2022, with supporting recommendations that would mitigate budget uncertainty for states and assure the stability and continuity of health insurance coverage for low- and moderate-income children over this five-year transition period. The package also recommends support for states to test innovations leading to a more seamless system of children’s coverage in the future, and modest changes to existing law to streamline the program and extend other child health initiatives that are expiring.

The Commission’s recommendations were issued originally in January 2017 and reprinted here.

Publication Type: Reports to Congress

From: March 2017 Report to Congress on Medicaid and CHIP

Tags: benefits, children, CHIP, CHIP funding allotment, comparisons with other sources of coverage, cost sharing, enhanced federal medical assistance program (E-FMAP), financing, maintenance of effort, matching rate, premiums, spending, uninsured