House Readies Temporary Relief for States in Need of Crucial CHIP Funding

WASHINGTON, Dec. 4 -- Rep. Greg Walden, R-Oregon, chairman of the House Energy and Commerce Committee, issued the following news release:

This week, the House of Representatives will consider a Continuing Resolution (CR) that includes a short-term technical adjustment to address some states' dwindling funds for the state Children's Health Insurance Program (CHIP).

Funding for CHIP and other public health priorities expired on September 30, 2017. The House of Representatives passed H.R. 3922, the CHAMPIONING HEALTHY KIDS Act (https://energycommerce.house.gov/news/press-release/house-passes-responsible-commonsense-bill-extending-funding-chip-critical-public-health-programs/), extending funding for CHIP, Federally Qualified Health Centers (FQHCs) and other important public health programs, on November 3, 2017, by a bipartisan vote. H.R. 3922 is fully offset through responsible reforms like reducing federal subsidies for seniors earning more than $500,000 each year (or $40,000 each month) by limiting government contributions for their Part B and D premiums, and disenrolling lottery jackpot winners from Medicaid to prioritize the most vulnerable.

Under current law, the Centers for Medicare and Medicaid Services (CMS) is restricted by a statutory formula in how it allocates "redistribution funds" to cover state shortfalls that are occurring in the absence of funded FY2018 CHIP allotments. This policy waives a proration rule in the current statutory formula to give CMS flexibility to allocate currently-available redistribution dollars (to any state that exhausts its federal CHIP funding).

This change means CMS can make states whole with federal dollars through Dec 31, 2017, even if a state has already received its original share of the redistribution funding under the current proration rule.

"This responsible stopgap solution, championed by Reps. Costello and Emmer, will help families and states while Congress finishes the job to extend funding for children's health insurance, public health priorities, and Medicare extenders that seniors rely upon," said Energy and Commerce Committee Chairman Greg Walden (R-OR) and Health Subcommittee Chairman Michael C. Burgess, M.D. (R-TX). "Make no mistake, we are incredibly disappointed that the House's CHAMPIONING HEALTHY KIDS Act, which passed with bipartisan support, has yet to be considered by the Senate. As we continue to work to reach a broader agreement on extending funding for these vital programs, it is imperative that the bipartisan House package be the foundation for what ultimately becomes law."