Republicans release discussion draft of CHIP funding bill

House Energy and Commerce Health Subcommittee Chairman Joe Pitts (R-PA), full committee Chairman Fred Upton (R-MI) and Senate Finance Committee Chairman Orrin Hatch (R-UT) yesterday released a discussion draft of legislation to extend the State Children’s Health Insurance Program. The proposal would extend CHIP funding while seeking feedback on the appropriate length of the extension; retain the current formula for allocating federal CHIP funds to states; and eliminate the Federal Medical Assistance Percentage increase of 23% scheduled for fiscal year 2016. Among other provisions, it would no longer require states to preserve income eligibility levels for children in Medicaid and CHIP through Sept. 30, 2019, or to cover through Medicaid children aged 6-18 with family incomes between 100% and 133% of the federal poverty level. In addition, the proposal would reduce the federal match for families with income above 250% of poverty, and eliminate federal funding for those with incomes above 300% of poverty. Earlier this month, Democratic members of the committees introduced separate bills to extend CHIP funding through 2019.