Feds assure funding to keep Texas CHIP alive

$135M pledged for health program that covers 400,000 kids

AUSTIN — The federal government will provide funding to ensure 400,000 Texas children keep their health care coverage under the Children’s Health Insurance Program through the end of February.

That gives thousands of families who depend on CHIP a small reprieve as the future of the decades-old program remains in question in Congress.

Texas had expected to run out of funding for the program at the end of January. But health officials asked the federal government for $90 million to keep CHIP alive one more month, and they received written assurance Friday the state will receive approximately $135 million.

“Given this assurance, we don’t expect to have to send client letters this month about any changes in their coverage,” said Carrie Williams, a spokeswoman with the Texas Health and Human Services Commission, which administers the program. “We’re confident that

Texas will receive enough federal funding to continue the program through February 2018.”

While the program will stay in place one more month, health advocates and lawmakers say it’s not enough, and are urging Congress to appropriate long-term funding.

Congress allowed the program to expire on Sept. 30, leaving Texas and other states with dwindling coffers.

Permanent fix urged

For decades, CHIP has received bipartisan support. But this year, lawmakers have been stymied on how to fund it. Some Republicans have demanded cuts to Medicare or other programs in order to pay for CHIP.

“CHIP is an effective program with bipartisan support, and the children who benefit from this program should never have been put in a position where they might lose care,” Texas House Speaker Joe Straus said in a written statement.

“The written assurances from the administration will provide some short-term certainty for the program, and that’s important. But the need for Congress to act quickly has not diminished, and I hope Congress will reauthorize the program soon in order to provide the longer-term certainty that working families in Texas need,” Straus said.

Texas law limits funds

A third of the states anticipate running out of funds by the end of January, according to the Kaiser Family Foundation.

Some states, including Minnesota, are using state dollars to fund the program. But Texas law bars officials from using state funds to pay for the program if there are no federal dollars in place. If the state runs out of money, it will send all CHIP recipients to the federal government’s health care marketplace.

In early November, the U.S. House passed a bill to fund CHIP, but it would have required cuts to other programs, such as Medicaid. It passed without any Democratic support.

The program has been in place since 1997, and last year covered nearly 9 million children. CHIP provides coverage to families who earn too much money to qualify for Medicaid. In addition to health care for children, the program also pays for prenatal care for low-income pregnant women.

‘A lot of work to do’

Rep. Sheila Jackson Lee, D-Houston, called the extension a short-term fix. She has regularly taken to social media to demand Congress act quickly to fund the program.

“Right now, I want to wish (CHIP) recipients in Texas a happy holiday because we didn’t want them to get a Scrooge answer right before Christmas,” Jackson Lee said. “It’s good news, but we have a lot of work to do.”

In response to a news article about the onemonth extension, Texas U.S. Sen. John Cornyn said in a tweet that funding was imminent.

“Congress will pass a long term CHIP bill next week,” Cornyn said in a tweet.