Issue Brief 17-31
October 16, 2017

Funding for the Children’s Health Insurance Program (CHIP) expired September 30. On October 4, the Senate Finance Committee approved the Keep Kids’ Insurance Dependable and Secure Act (KIDS Act, S. 1827). The House Energy and Commerce Committee also approved its bill—the Helping Ensure Access for Little Ones, Toddlers, and Hopeful Youth by Keeping Insurance Delivery Stable Act (HEALTHY KIDS Act, H.R. 3921).

Both bills would extend funding for CHIP and related programs through fiscal year (FY) 2022, and maintain the Affordable Care Act’s (ACA) 23-percentage-point increase in the enhanced federal matching rate through FY 2019. However, the House bill incorporates provisions not in the Senate bill, including offsets, eliminating Medicaid Disproportionate Share Hospital (DSH) cuts for FY 2018 (but extending the cuts for two years), and providing Medicaid funding for Puerto Rico and the Virgin Islands.

The full House was expected to consider its bill last week, but action has been delayed due to bipartisan negotiations around offsets. In the meantime, the administration announced that it is distributing $230 million in unspent prior-year funds to five states and four territories expected to run out of funding for CHIP shortly.