What Happens to SCHIP After March 31, 2009? (CRS Report for Congress)
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| Release Date |
Dec. 19, 2008 |
| Report Number |
R40075 |
| Report Type |
Report |
| Authors |
Chris L. Peterson, Specialist in Health Financing |
| Source Agency |
Congressional Research Service |
Summary:
The Balanced Budget Act of 1997 (BBA97, P.L. 105-33) created the State Children's HealthInsurance Program (SCHIP) and appropriated nearly $40 billion over the 10-year period FY1998to FY2007. The Medicare, Medicaid, and SCHIP Extension Act of 2007 (MMSEA, P.L. 110-173)appropriated more than $10 billion to ensure no state's SCHIP program runs out of federal SCHIPfunds before March 31, 2009. Without legislative action, three sources of federal SCHIP fundswill no longer be available after March 2009: (1) states' FY2008 federal SCHIP allotments; (2)states' FY2009 federal SCHIP allotments; and (3) up to $275 million for eliminating FY2009shortfalls through March 31, 2009. Only the handful of states with unspent FY2007 federalSCHIP balances could continue to draw federal SCHIP funds. Thus, under current law, 43 statesare projected to have no federal SCHIP funds on April 1, 2009. If the availability of the FY2008and FY2009 allotments was extended through the end of FY2009, shortfalls of federal SCHIPfunds would still total approximately $1.9 billion in 27 states, though this could be mitigated insome states by the ability to access Medicaid funding, albeit at a reduced matching rate comparedto SCHIP.
