Mississippi Named as One State that Will Run Out of CHIP funds if Congress Doesn't Act
Oct. 4, 2017 - Federal funding for the Children’s Health Insurance Program (CHIP), which covered 8.9 million children in FY 2016, is set to expire on September 30, 2017. This fact sheet provides an overview of current state plans for CHIP amid continuing uncertainty about future federal funding for the program and discusses how states and children would be affected if Congress does not extend funding by the September 30, 2017 deadline. With this deadline nearing, states will need to begin making decisions soon about actions they will take if Congress does not extend funding. States provide CHIP through a separate CHIP program, a CHIP-funded Medicaid expansion, or a combination of both approaches. States with CHIP-funded Medicaid expansions would be required to maintain this coverage under the Affordable Care Act (ACA) maintenance of effort requirement, and state costs would increase since states would receive the lower federal Medicaid match rate. States with separate CHIP coverage would not be required to maintain this coverage if federal funding ends.
During Summer 2017, the Kaiser Family Foundation and Health Management Associates surveyed state Medicaid officials about their state budget assumptions and future plans for CHIP if Congress does not extend funding. In addition, the Kaiser Family Foundation and the Georgetown University Center for Children and Families conducted interviews with CHIP directors in several states. Key findings show that without federal funding, states would face budget pressures, children would lose coverage, and implementation of program changes could result in increased costs and administrative burden for states as well as confusion for families. See Appendix Table 1 for state data; see here for state Medicaid and CHIP eligibility limits for children.
Nearly all (48 of 50) responding states (including DC) assumed continuation of federal CHIP funding in their FY 2018 state budgets. In addition, 34 of 42 responding states assumed that this funding would continue with the 23 percentage point enhanced federal match that was included in the ACA.