HHS disseminates $6B for children's insurance

Health & Human Services Secretary (HHS) Kathleen Sebelius has reported that $6 billion in new federal funds will be made available to states and U.S. territories for fiscal year 2009 to provide health care to millions of children across the United States through their Children's Health Insurance Programs (CHIP).

The new funds for CHIP were made available by the Children's Health Insurance Program Reauthorization Act of 2009 (CHIPRA), which was signed into law by President Barack Obama on February 4. CHIPRA provides additional funding that will help states and territories maintain existing CHIP enrollment and expand their programs.

In addition to increased funding, CHIPRA revised the annual allotment formula to better reflect projected state and program spending.

"Through CHIPRA, states and territories will receive additional funds to provide health insurance to 11 million children, including 4 million who were previously uninsured. Parents now have more help if their children fall ill," Sebelius said.

Of the $6 billion in new funding under CHIPRA, HHS said it has released more than $1 billion and expects to allocate the remainder to the states and territories by the end of September.

CHIP provides health insurance for children of working families whose incomes are too high for traditional Medicaid, but too low for either employer-sponsored family plans or other private coverage, according to the agency. While CHIP is optional, each state and every territory operates a program. Similar to Medicaid, CHIP is jointly funded by states and the federal government.

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