California, Other States Look To Reallocate CHIP Funding Under ACA
An Affordable Care Act provision intended to prevent states from dropping Children's Health Insurance Program coverage by increasing the federal share of funding means some states plan to shift funding to other budget priorities, The Hill reports.
According to The Hill, a "little-known" provision under the ACA boosted reimbursement rates under CHIP by 23%, or by about $6 billion over two years. Because of the provision, 11 states and Washington, D.C., will have CHIP covered entirely by federal funding, and no state will pay more than 12% of its CHIP costs.
Some states -- such as California, Indiana and Kansas -- already have said they want to use funding previously dedicated to CHIP for other budget needs, such as providing tax cuts or working on roadways.
For example, the provision allowed California Gov. Jerry Brown (D) to reallocate about $381 million from the program in an upcoming budget.
Children's health advocates have said they are concerned that states will find it difficult to replace the federal funds when they expire in two years, potentially leading to program cuts.
Shannon Cotsoradis, head of Kansas Action for Children, said, "It's hard to get that money back," adding, "At the end of the day, what it might mean is a reduction in children's health coverage" (Ferris, The Hill, 8/15).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.