ADEA State Update

CHIP Funding Update

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Funding for the federal Children’s Health Insurance Program (CHIP) will expire at the end of fiscal year (FY) 2015. As a result, the Medicaid and CHIP Payment Access Commission (MACPAC) has been debating various options to extend CHIP funding. MACAPAC is a non-partisan federal agency charged with providing policy and data analysis to the Congress on Medicaid and CHIP.

During its April 10–11 meeting, MACPAC discussed whether to recommend to Congress that CHIP funding be extended. Ultimately, the Commission unanimously approved a recommendation that “Congress should extend federal CHIP funding for a transition period of two additional years during which time the key issues regarding the affordability and adequacy of children’s coverage be addressed.” The recommendation calls on Congress to provide funding through FY16 and FY17, which is two years beyond the current allocation.

The Congressional Budget Office (CBO) has estimated that the 12.7 million children expected to be enrolled in FY15 would be at risk of losing their CHIP coverage in 2016 if funding is not continued for the program. On April 28, the Partnership for Medicaid sent a letter to Members of Congress urging Congress to protect CHIP and continue funding the program. ADEA is a member of the Partnership for Medicaid and joined the sign-on letter. 

According to MACPAC staff, the Commission will release its June 2014 Report to the Congress on Medicaid and CHIP by June 15. MACPAC’s specific recommendations on the future of CHIP will be detailed in the report. ADEA will continue to closely monitor CHIP funding and keep members updated on any developments.
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