RESOLUTION ON THE CHILDREN’S HEALTH INSURANCE PROGRAM WHEREAS, the Children’s Health Insurance Program, or CHIP, began in 1997 to provide health insurance coverage for children in families that did not qualify for Medicaid but could not afford private insurance; and WHEREAS, states receive a matching rate for the Children’s Health Insurance Program greater than their Medicaid program’s Federal Medical Assistance Percentage, or FMAP; and WHEREAS, Congress increased the matching rate for the Children’s Health Insurance Program by 23 percentage points in the 2009 American Reinvestment and Recovery Act, or ARRA, in recognition of the importance of health insurance coverage for children; and WHEREAS, 8.9 million children receive health insurance through the Children’s Health Insurance Program; and WHEREAS, the CHIP program has been credited with reducing the rate of uninsured children from 14 percent in 1997 to 7 percent in 2012; and WHEREAS, federal funding for the CHIP program has not been appropriated for 2018 or beyond; and WHEREAS, states adopted budgets for 2018 during their 2016 or 2017 legislative sessions assuming that federal funds for CHIP would be appropriated; and WHEREAS, states are taking steps to suspend CHIP coverage for their constituents as early as Jan. 1, 2018, as federal funding is exhausted in their jurisdictions; and WHEREAS, 27 states will likely exhaust funding in the first quarter of 2018 according to the Medicaid and CHIP Payment and Access Commission (MACPAC). NOW, THEREFORE BE IT RESOLVED, that The Council of State Governments urges Congress to appropriate funds and the President to sign into law federal funding for the CHIP program that maintains the current enhanced matching rate, or failing that, allows for a gradual phase-out of the increased matching rate provided by ARRA in 2009.

Resolution Summary

This resolution urges that Congress appropriate federal funds to allow states to continue operating the Children’s Health Insurance Program, or CHIP, without interruption and that the President sign the measure. Some states are already taking steps to suspend CHIP coverage as federal funding is exhausted. For instance, in November, West Virginia’s CHIP board voted to end the program on Feb. 28, 2018, if Congress fails to appropriate funding. Colorado and Virginia have made plans to notify CHIP families in late November or early December that coverage will end Jan. 31, 2018. Virginia plans to close enrollment of new eligible children on Jan. 1, 2018.

Additional Resources

• “House Votes to Extend CHIP Funding, Some States May Exhaust Funds Before Senate Can Turn into Law,” Emily McCarthy, CSG Policy Blog, Nov. 7, 2017 http://knowledgecenter.csg.org/kc/content/house-votes-extend-chip-funding-some-states-may-exhaust-funds-senate-can-turn-law

• “Future of Health Insurance Program for 8.9 Million Children Uncertain,” Emily

McCarthy, CSG Policy Blog, Aug. 29, 2017 http://knowledgecenter.csg.org/kc/content/future-health-insurance-program-89-million-children-uncertain

• CHIP, Center for Children and Families, Health Policy Institute, Georgetown University

https://ccf.georgetown.edu/topic/childrens-health-insurance-program/

• Update on Status of CHIP Funding Renewal, Joanne Jee, Medicaid and CHIP Payment and Access Commission, Oct. 26, 2017 https://www.macpac.gov/wp-content/uploads/2017/10/Update-on-Status-of-CHIP-Funding-Renewal.pdf

CSG Management Directives

The CSG staff will post this resolution, when approved, to CSG’s website and work with Congress, Executive Branch officials, and stakeholders to provide information on states’ CHIP programs and the need for timely federal appropriations.