WASHINGTON, DC - As the U.S. Senate debates a plan to expand and improve the Children's Health Insurance Program (CHIP), U.S. Senator Jack Reed (D-RI), a member of the Health, Education, Labor and Pensions (HELP) Committee, who helped craft the original program in 1997, announced the Senate bill will provide Rhode Island with a potential increase in federal aid from $13.2 million to $69.5 million, the highest percentage increase of any state. This federal funding will preserve coverage for the 12,500 children currently enrolled in RIte Care and allow the state to expand CHIP coverage.

CHIP provides health coverage to uninsured children whose parents do not qualify for Medicaid. The Children's Health Insurance Program Reauthorization Act of 2009 will invest $32.8 billion over four and a half years in preserving coverage for the 6.7 million children enrolled in the program and extending coverage to 4.1 million more children nationwide. In addition, the bill facilitates enrollment through expanded outreach and improves benefits by requiring dental coverage and mental health parity; investments that save taxpayer money in the future.

The program will be fully funded by a 61-cent-a-pack increase in cigarette taxes.

"As the unemployment rate rises, so does the number of families struggling to pay for health care. This legislation will provide Rhode Island with a significant increase in federal funding to preserve health insurance for thousands of Rhode Islanders and reduce the number of uninsured children in our state. This is a smart investment in our children's future and it is fully paid for with an increase of the cigarette tax. Not only will this provide more kids with health insurance, it will also help reduce the number of young people who take up smoking and save our health care system billions of dollars in the long-term," said Reed. "I have been working hard in Congress for the last several years to expand the CHIP program and help safeguard some of our nation's most vulnerable children. I am pleased that President Obama has pledged to sign this bill into law."

Since its inception twelve years ago, CHIP has succeeded in reducing the number of low-income uninsured children in Rhode Island and throughout the nation.

The 110th Congress twice passed legislation backed by Senator Reed to expand the program, but it was vetoed both times by former President George W. Bush and efforts to override the veto fell short. President Barack Obama has strongly supported the program and intends to sign the measure into law.

In December of 2006, Reed prevented the Senate from adjourning for the year, blocking several key bills until Congress addressed the Children's Health Insurance Program funding shortfall. Reed then brokered an agreement with fellow lawmakers that prevented over 600,000 children nationwide from potentially losing their health insurance and provided $18 million to help alleviate pressure on Rhode Island's state budget. In 2007, Senator Reed led the effort to fully fund an extension of CHIP, providing $49 million to preserve coverage for Rhode Islanders.

The U.S. Senate is expected to pass the legislation later this week. A similar measure was approved by the U.S. House of Representatives and a final bill must be reconciled before being sent to President Obama to be signed into law.