WASHINGTON, DC - Late last night, the U.S. Senate approved a bipartisan plan to renew and improve the Children's Health Insurance Program (CHIP). CHIP provides health coverage to low-income, uninsured children whose parents do not qualify for Medicaid, but cannot afford private health insurance. The Senate voted 68-31 in favor of a five-year, $35 billion plan to maintain coverage for all 6.6 million children covered by CHIP today and bring dependable health coverage to an additional 3.2 million uninsured American children in working families in the next five years.

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, voted for the bill and played a key role in the debate over the legislation.

"I am pleased the Senate passed this critical legislation by such a strong margin and with so much bipartisan support. Millions of low-income families nationwide and thousands of Rhode Islanders depend on CHIP for their health care needs. This program has been a great success," said Reed. "By passing this bill and getting it signed into law we can ensure that thousands of children, pregnant women, and families in Rhode Island will continue to have access to quality health care."

The Children's Health Insurance Program (CHIP) was created in 1997 and over the past decade has succeeded in reducing the number of low-income uninsured children throughout the nation. Rhode Island has a combined Medicaid/SCHIP program called RIte Care. It is estimated that the program covers approximately 90,000 children under age 19 in the Ocean State.

The Senate reauthorization plan would allocate $35 billion over 5 years and would expand coverage to an additional 3.2 million children. The program would continue to be financed through the federal cigarette excise tax. The Senate approved measure will be paid for with a 61-cent increase in federal tax on cigarettes, which will utilize market forces to curtail smoking.

"The CHIP program has demonstrated tremendous success over the past decade. The Congressional Budget Office estimates that the number of uninsured children fell from 22.5 percent in 1996 to 16.9 percent in 2005 due in large part to CHIP," noted Reed. "But there are still too many families which can't afford to pay for health insurance. We need to do more to get these children covered and passing this bill is a step in the right direction."

While Rhode Island ranks 10th nationally in the lowest number of uninsured children, a recent report by Rhode Island Kids Count indicates that of the estimated 18,680 uninsured children, 11, 275 of them were eligible for RIte Care but were not enrolled.

Highlights of the legislation include:

  • $35 billion in funding over five years to preserve coverage for 6.6 million children enrolled at this time - including those who would have lost CHIP coverage without this investment - and reach an estimated 3.2 million additional uninsured, low-income American children;
  • State allotment formula improved to reflect actual projected spending;
  • Contingency fund to address unforeseen emergencies;
    Funding for outreach and enrollment efforts, including targeted efforts to reduce racial and ethnic disparities of health coverage;
  • Coverage above 300% of Federal poverty level will receive regular Medicaid match rate;
  • $200 million in grants will strengthen and improve access to dental coverage for children;
  • States providing mental health services will be required to provide services on par with medical and surgical benefits offered under CHIP;
  • States have an additional option to cover pregnant women as a state option, as well as maintaining the options to cover them through a state waiver or through regulation;
  • Funds for existing coverage of low-income parents will transition into a new separate block grant at a Federal matching rate between Medicaid and CHIP;
  • A demonstration project will allow as many as ten states to use information from food stamp programs and other initiatives for low-income families to find and enroll eligible children; and
  • Improved pediatric quality measures for CHIP and Medicaid.

Now that the bill has passed the Senate it needs to negotiate final legislation with the House of Representatives before the Children's Health Insurance Program expires on September 30.