Energy and Commerce leaders unveil bill to extend funding for CHIP

House Energy and Commerce Committee Chairman Greg Walden (R-OR) last night unveiled a bill to extend funding for the Children’s Health Insurance Program through fiscal year 2022, modify reductions in Medicaid disproportionate share payments to hospitals and provide $1 billion in Medicaid funding to Puerto Rico. Under the Helping Ensure Access for Little ones, Toddlers, and Hopeful Youth by Keeping Insurance Delivery Stable (HEALTHY KIDS) Act, CHIP’s federal matching rate would remain at 23% through FY 2019, change to 11.5% for FY 2020, and return to a traditional CHIP matching rate for FYs 2021 and 2022. These provisions are the same as a bill introduced last month in the Senate Finance Committee. In addition, the House bill would delay the Medicaid DSH cuts for FY 2018, but add two more years of cuts for 2026 and 2027. Offsets in the bill include changes to Medicaid third party liability and treatment of lottery winnings and other lump-sum income for purposes of income eligibility under Medicaid, as well as adjustments to Medicare Part B and Part D premium subsidies for higher-income individuals. The House Energy and Commerce Committee and Senate Finance Committee both plan to mark up their respective bills tomorrow. While CHIP is authorized through Oct. 1, 2019, legislative action is needed to reauthorize funding, which expired Sept. 30.