CMS says most states will deplete CHIP funding by March: 4 things to know

Morgan Haefner - Print  | 

All states will exhaust federal Children's Health Insurance Program funding in fiscal year 2018, according to a recent CMS bulletin.

Here are four things to know.

1. Congress allowed CHIP funding, which covers roughly 9 million low-income children, to expire Oct. 1.

2. Nationally, CMS projects next year's CHIP funding shortfall will total about $13 billion. This is compared to the estimated $3 billion in funding available for redistribution.

3. The first state to use all of its CHIP funds will do so this month. The majority of other states will exhaust funding by March 2018, CMS estimates.

4. If Congress does not appropriate additional funding for CHIP, states will need to transfer children off the program. States with their own CHIPs can phase out coverage and transition children to their state Medicaid plan. If a child is ineligible for Medicaid, the state should steer affected beneficiaries to the public exchange, according to CMS.  

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