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Issue Brief
June 2009

More Funding for CHIP, Different Rules: How Does CHIPRA Change CHIP Funding?

The CHIP Reauthorization Act of 2009 (CHIPRA) provides significantly more federal funding for children’s health coverage and includes new rules for distributing these funds among the states. Over the next four and a half years, the federal government will have a total of $69 billion in CHIP funds to distribute among states. The Congressional Budget Office estimates that CHIPRA’s additional funding and new outreach and enrollment tools will enable states to maintain coverage for the 7 million currently enrolled children and cover an additional 4.1 million uninsured children.

This brief summarizes the new federal financing rules for CHIP, including improvements to the financing system that will help ensure that states have the funding they need to get more children covered. These are significant changes, and it is important that those who are working on children’s coverage understand them so that they can urge states to make the best possible use of the new funding that is available to cover more children in Medicaid and CHIP.