States warn CHIP recipients benefits may end in January

Nearly two months after authorization for the Children’s Health Insurance Program (CHIP) expired, two states are sending letters to families about the potential loss in insurance coverage for their children unless Congress approves funding—and another says it’s already out of money.

The Colorado Department of Health Care Policy and Financing has begun contacting the approximately 70,000 people covered its Children’s Health Plan Plus (CHP+) program, saying without congressional action, CHP+ benefits will end Jan. 31, 2018, as the state’s matched federal funds will run out. In the meantime, recipients are instructed in the letter to renew their benefits and pay their enrollment fee.

“If Congress does not renew federal funding for CHP+ by late December 2017, you will get a letter telling you when your CHP+ benefits will end and what else you may qualify for. We will not know what you qualify for until late December. At that time your letter will give you information on your options and who you can call for help,” the letter states.

Virginia is preparing to send similar letters to its CHIP recipients, according to the Washington Post. Minnesota has exhausted its existing federal funds, reported Governing magazine, but plans to keep the program running solely on state support.

Oregon is prepared to do the same. Gov. Kate Brown sent a letter to the Oregon Health Authority on Nov. 20 directing the agency to “work with Coordinated Care Organizations to guarantee coverage for kids through April 30, 2018.” She later said she was prepared to commit $35 million in state funds to maintain benefits.

“In the months to come, dozens of other states will be severely impacted if Congress does not act to authorize funding for CHIP,” Brown wrote.

A report from the Georgetown University Center for Children and Families said six states wouldn’t be able to keep their programs afloat on their own past early January, with three more projected to exhaust federal funding by the middle of that month. A reauthorization bill may be included as part of a larger spending package to avoid a shutdown of the federal government.

The House passed a 5-year CHIP funding bill on Nov. 3, but with only 15 Democrats voting in support due to provisions affecting other healthcare programs, such as taking money from the Affordable Care Act’s public health fund and limiting federal subsidies for wealthier Medicare beneficiaries to pay for the reauthorization. The Senate hasn’t taken up the House bill, and similar opposition from Democrats would block it, as it would have to clear a 60-vote threshold to break a filibuster in the Senate.