Pennsylvania House advances extension of children’s health insurance program as cutoffs loom

Morning Call (Allentown, PA)

Nov. 04--The U.S. House has approved a bill to renew the expired Children's Health Insurance Program, but Friday's largely party-line vote did little to clear up when or how the program's fate will be resolved.

The program, known as CHIP, typically has drawn support from both sides of the aisle. It provides health insurance to 9 million children nationally whose families earn too much to qualify for Medicaid but can't afford private insurance, covering doctor visits, prescriptions, dental care and other services, at low or no cost.

But CHIP was left on the back burner this fall, with its Sept. 30 deadline for renewal coming and going as lawmakers focused on several unsuccessful attempts to repeal and replace the Affordable Care Act.

While lawmakers agreed to extend CHIP for another five years, they haven't agreed on how to pay for it.

House Republicans have advanced a plan that would take money from a public health program created under the Affordable Care Act, charge higher Medicare premiums to wealthy seniors, and shrink the grace period for people who don't pay their premiums on insurance policies purchased through the ACA exchanges.

Democrats opposed that plan, and both sides accused the other of seeking to sabotage the children's insurance program. Pennsylvania's delegation divided along party lines, with Republicans in support and Democrats voting "no."

The bitter House debate and vote sends the matter over the U.S. Senate, where further action might not come until next month. A Republican aide said CHIP is expected to be dealt with as part of the broad year-end spending package.

So what does this mean for the 176,000 people enrolled in Pennsylvania's CHIP program, including nearly 11,000 in Lehigh and Northampton counties?

State officials said the program has enough funding to keep operating until early February, so the congressional fight won't kick anyone off Pennsylvania's program just yet. But the state Department of Human Services will begin notifying families at least 30 days before the program would run out of funding, or by early January based on current projections.

"At this time, the exact date is unknown due to the uncertainty of the program," Human Services spokeswoman Rachel Kostelac said Friday. "The department is currently reviewing options to extend coverage to participating children, however no plans have been finalized at this time."

Other places will feel the pinch much more quickly. Arizona, California, Minnesota, Ohio, Oregon and the District of Columbia are among those expected to run out of money by January.

But Pennsylvania state legislators also need to reauthorize the state's program by the end of the year, an action that would be clearer if they know what changes federal officials are making to the program and its funding.

Pennsylvania's CHIP program predates the national one, which began in 1997. The state's version was created in 1992, and was funded at that time by a 2-cent tax on packs of cigarettes.

Today, the program is jointly funded through the state and federal governments. Washington has picked up a larger share of the tab since the Affordable Care Act was passed, with the federal portion covering almost 90 percent of the cost.

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