Issue Brief 12-01
January 4, 2012

The Children’s Health Insurance Program Reauthorization Act of 2009 (CHIPRA, P.L. 111-3) provided a new opportunity for states to obtain bonus payments for simplifying their Medicaid and CHIP programs and successfully enrolling children who are eligible for Medicaid. These payments are designed to help states offset a portion of their costs associated with increased enrollment. On December 28, 2011, the Centers for Medicare & Medicaid Services (CMS) announced that 23 states received nearly $300 million in performance bonuses in federal fiscal year (FY) 2011. This is an increase from FY 2010 when 15 states received $206 million. All states that received bonuses in FY 2010 qualified again in FY 2011, and eight states received bonuses for the first time.