23 states split $296 million in CHIP enrollment incentives
Health and Human Services Secretary Kathleen Sebelius announced yesterday the award of more than $296 million to 23 states that have exceeded target enrollment under the Children Health Insurance Program (CHIP), which insures children 0-17 who live in a low-income household.
The bonus payments are funded under the Children's Health Insurance Program Reauthorization Act (CHIPRA) of 2009 and are based on states surpassing a specified Medicaid enrollment target, as well as the adoption of procedures that improve access to Medicaid and CHIP that make it easier for eligible children to enroll and retain coverage.
[See also: GAO says states must improve Medicaid, CHIP care coordination.]
"Despite serious fiscal challenges, today's awards show that children's health remains a top priority for states," said Cindy Mann, deputy administrator of the Centers for Medicare & Medicaid Services in a press release. "Not only have more states qualified for performance bonuses than in the past, but many have continued to improve the efficiency of their programs."
Enrollment increases for the 23 states ranged from 4 percent to as high as 27 percent. Seven states received incentive awards for the first time in 2011 and another 16 states qualified for larger incentive payments based on reaching Tier 2 enrollment levels – increases exceeding 10 percent over the 2010 base enrollment level.
Last year, only 16 states qualified for the bonus payments, which totaled $216 million. According to information from HHS, the bonus incentives are meant to help states offset the additional costs of having more kids enrolled in state health insurance, while also providing an incentive for states to improve and streamline their enrollment processes.
The incentive announcement comes just one week after the new data presented by the Centers for Disease Control and Prevention showed that the number of children with health insurance in the country climbed by more than 1.2 million. Administration officials see the increase as proof positive that CHIPRA has performed as intended through the recession. Since the law was passed in 2009 insurance coverage has climbed from 91 percent to 93 percent of all children.
"More children now have the advantages health coverage provides," said Sebelius in a statement. "And parents now have the security of knowing their children can get the healthcare they need without worrying that an illness could leave them with a lifetime of medical bills."
CMS tracks performance in eight specific areas, of which states must achieve 5 to qualify for incentive payments.
[See also: CHIP scorecard reveals uneven care across states.]
The 23 states eligible for performance bonuses include: Alabama, Alaska, Colorado, Connecticut, Georgia, Idaho, Illinois, Iowa, Kansas, Louisiana, Maryland, Michigan, Montana, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oregon, South Carolina, Virginia, Washington and Wisconsin.
Maryland led the list with an incentive payment of more than $28.3 million, closely followed by Virginia ($26.7 million) and Colorado ($26.1 million).
