Texas CHIP Rolls Must Grow FAST to Avoid Losing Federal CHIP Dollars Permanently— 12-Month Coverage the Best Way

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Anne Dunkelberg /(512) 320-0222 x 102

April 18, 2007

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Between 2000-2006, Texas gave up over $900 million in federal CHIP dollars. Congress had designated these dollars for Texas, but because we did not spend them, they went to other states. Congress is now reauthorizing the SCHIP Block Grant, and will write new rules governing how much federal matching money Texas can receive for CHIP in the next decade. The good news for Texas is that Congress is proposing substantial new CHIP funding, designed to allow states enroll uninsured children who meet CHIP qualifications but are currently not enrolled. The bad news for Texas is that Congress is proposing to determine a state’s CHIP allocation based on how much a state is spending on CHIP in federal fiscal year (FFY) 2009. The Texas legislature must move quickly to remove barriers to CHIP enrollment growth by providing for 12-month coverage. Otherwise, our federal allocation will be permanently reduced.