The Medicaid and CHIP Payment and Access Commission on Thursday recommended a five-year federal funding extension for the State Children's Health Insurance Program, saying the extension will stabilize coverage for more than 8 million low- to moderate-income children, as well as financing for states.
MACPAC is urging action "as soon as possible." Congressional action is needed for states to receive any new federal funds for CHIP, which is funded jointly by states and the federal government, beyond Sept. 30, 2017, according to a news release.
MACPAC recommends to extend CHIP— now set to expire at the end of fiscal year 2019 — through FY 2022. The recommendation is part of a bundle of recommendations designed to address the stability of health insurance coverage for low- and moderate-income children, the release states. Additionally, the package of recommendations offers support for states to test innovations that could result in "a more seamless system of children's coverage in the future."
"CHIP, which historically has enjoyed bipartisan support, has successfully provided health insurance to millions of children whose families could not otherwise afford it. The commission's recommendations not only protect children from losing health coverage but also recognize the important role states play as laboratories for innovation," MACPAC chair Sara Rosenbaum said in a prepared statement.
The current federal CHIP matching rates for states range from 88 to 100 percent of total state CHIP expenditures, according to the release. In total, CHIP spending in FY 2015 was approximately $14 billion, with about 71 percent paid by the federal government and 29 percent by the states and territories.
A full analysis of the recommendation will be available next month and as part of MACPAC's March 2017 Report to Congress on Medicaid and CHIP. Click here to read the complete set of recommendations on children's coverage.
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