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September 20, 2006
Senator Rockefeller Introduces the Keep Children Covered Act
To meet federal funding in states' CHIP program
Senator John D. (Jay) Rockefeller IV has introduced the Keep Children Covered Act (S. 3913) to help at least 17 states expecting federal funding shortfalls in their Children’s Health Insurance Programs (CHIP) next year. Without this funding, more than half a million children who depend on this vital program could lose coverage.
Rockefeller authored the CHIP program with the late Senator John Chaffee (R-RI) and others in 1997. Since its creation, CHIP has provided health insurance coverage to over 6 million children.
From Senator Rockefeller’s floor statement:
“There is clear evidence that children with consistent access to health care services are more likely to become healthy adults and successful members of our communities.”
“Working families depend on this program in order to access the health care services – like check-ups and prescriptions – that their children need. I hope we will not let them down.”
Information about the Keep Children Covered Act
In FY2007, states’ demands by states for federal CHIP funds are projected to be approximately 22 percent greater than the year’s allotments, resulting in shortfalls – approximating $900 million in at least 17 states for FY2007 according to the Centers for Medicare and Medicaid (CMS) Services.
Those states projected to have shortfalls are: Alaska, Georgia, Illinois, Iowa, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Nebraska, New Jersey, North Carolina, North Dakota, Rhode Island, and South Dakota.
The Keep Children Covered Act of 2006 provides the resources necessary for those states expecting shortfalls in FY2007 to fully fund their programs and continue to operate without disruption. In FY2007, the bill would provide funding equal to the state’s anticipated shortfall, based upon spending data submitted by the states to the Centers for Medicare and Medicaid Services (CMS).
The Keep Children Covered Act of 2006 also sets rules to better target the redistribution of any unspent funds from 2005, as has been done in previous years. This bill only addresses FY07 funding shortfalls, and in that vein, the 2005 funds are the only ones available for redistribution for this fiscal year. Under the bill, any unspent funds from 2005 allotments will go proportionately to each FY07 shortfall state based upon the state’s share of the overall shortfall.
This legislation also extends the Deficit Reduction Act (DRA) provision that allows qualifying states (i.e. the 20% states) to use their CHIP funds for Medicaid expansion children. These eleven states are Connecticut, Hawaii, Maryland, Minnesota, New Mexico, New Hampshire, Rhode Island, Tennessee, Vermont, Washington, and Wisconsin.
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