Senate committee passes bill to extend CHIP funding for five years

The Senate Finance Committee today approved by voice vote legislation to extend funding for the Children’s Health Insurance Program through fiscal year 2022. Under the KIDS Act (S. 1827), the program’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. The House Energy and Commerce Committee is marking up a similar bill this afternoon. In addition, the House bill would delay the Medicaid disproportionate share hospital cuts for FY 2018, but add two more years of cuts for 2026 and 2027; and would provide $1 billion in Medicaid funding to Puerto Rico. Offsets in the House 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. CHIP covers 8.9 million children with family incomes above Medicaid eligibility limits who lack access to affordable private coverage. While the program is authorized through Oct. 1, 2019, legislative action is needed to reauthorize funding, which expired Sept. 30.