Skip to main content

Failing to Reauthorize CHIP Leaves States and Children in the Lurch

It has been 69 days since Congress failed to reauthorize funding for the Children’s Health Insurance Program (CHIP), which provides coverage for 8.9 million children across the country. Last week, Colorado became the first state to notify families that they are in danger of losing coverage, and many others may follow. If Congress fails to fully fund CHIP, 36 states and D.C. will exhaust their existing 2017 federal funds by March of next year.                       

Yesterday, Congress passed a short-term government funding bill that attempts to free up some funds for CHIP. But this budget gimmick is not a replacement for fully funding the program so families have the peace of mind that their children will have access to the health services they need.

Failing to reauthorize CHIP funding shifts a huge financial burden onto states, forcing states to choose between denying health coverage to children and cutting other budget priorities. The short-term funding would cover less than a quarter of states’ shortfall. Without full, permanent funding, states will face at least a $10 billion total shortfall next year. States have already enacted their 2018 budgets and at least 35 states lack contingency funds if funding does not continue at expected levels.