The Children’s Health Insurance Program (CHIP) has received $6 billion in new federal funding for fiscal year 2009.
The funding was made available by the Children’s Health Insurance Program Reauthorization Act of 2009 (CHIPRA), which was signed into law by President Barack Obama on February 4.
“We are taking an important step to provide quality, affordable healthcare to millions of children,” said Health and Human Services Secretary Kathleen Sebelius. “Through CHIPRA, states and territories will receive additional funds to provide health insurance to 11 million children, including 4 million who were previously uninsured. Parents now have more help if their children fall ill.”
Of the $6 billion in CHIPRA funds, HHS has released more than $1 billion and expects to allocate the remainder to the states and territories by the end of September. CHIP provides health insurance for children of working families whose incomes are too high for traditional Medicaid but too low for employer-sponsored family plans or other private coverage.
“In these difficult economic times, more and more families will turn to CHIP to assure their children’s continued access to critical healthcare services,” said Sebelius. “To ensure our nation’s future, we must insure our children now.”
Sebelius recently met with New Jersey Gov. Jon S. Corzine and other officials who have led the effort to gain health insurance coverage for all children around the nation.
“Thanks to our partners in Washington and through New Jersey’s hardworking Congressional delegation, the struggle to secure children’s health legislation in our state is finally over,” said Corzine. “At a time when our state and nation are facing substantial economic challenges, we have remained steadfast in our commitment to provide access to quality health insurance for our uninsured children. I’m pleased that through our successful NJ FamilyCare program and new Express Lane option, we will continue to make great strides in reaching and enrolling every eligible child in New Jersey.”
While CHIP is optional, each state and territory operates a program. Similar to Medicaid, CHIP is jointly funded by states and the federal government. However, the federal government pays states a higher share of their CHIP costs than for their Medicaid programs.