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Plan Details

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Plan

2009 Childrens Health Insurance Program Reauthorization Act H.R. 2

Date January 2009 
Overall Approach Publicly-funded health care coverage for low-income children. 
Universal Coverage No - Provides coverage for 11 million low-income children: 7 million children currently covered by CHIP plus an additional 4 million low-income children who are currently uninsured. 
Guaranteed Coverage No 
Portability n/a 
Voluntary Employer-Based System n/a 
New Programs n/a 
Expansion of Existing Public Programs/Federal Law Creates a new performance bonus payment mechanism to offset state costs associated with enrollment outreach and retention activities. Establishes a Child Enrollment Contingency Fund cover state CHIP expenditures beyond the amount allotted. Dental coverage will be provided to all children enrolled in CHIP. Coverage under CHIP will include mental health services to be provided on par with medical and surgical benefits covered under CHIP. Provides state option to cover pregnant women.  
Insurance Pool N/A 
State Responsibility

Provides states the option to eliminate the 5-year waiting period for low-income uninsured children who are legally in the U.S.

Provides state option to cover pregnant women

Provides $100 million in grants for new outreach activities to states, local governments, schools, community-based organizations, safety-net providers and others

Allows states to offer a premium assistance subsidy for qualified, cost-effective employer-sponsored coverage to children eligible for CHIP

Permits states to use eligibility determinations from "Express Lane" agencies as a means to facilitate enrollment in Medicaid and SCHIP

Provides additional funding for states planning improvements

 
Individual Mandate N/A 
Employer Mandate N/A 
Private Insurance Mandates Subjects participating managed care organizations to child health quality measures for state Medicaid and SCHIP programs set by CMS

Subjects participating managed care organizations to marketing restrictions, required disclosures to beneficiaries, and access and quality standards  
Individual Subsidies N/A 
Individual Vouchers No 
Employer Subsidies Allows states to offer a premium assistance subsidy for qualified, cost-effective employer-sponsored coverage to children eligible for CHIP 
Individual Plan/Provider Choice No 
National Health Board N/A 
Tax Changes $72 billion increase in the federal tax on tobacco products over 10 years 
Premium/Co-Pay/Deductible Not addressed 
Health Quality Improvement Authorizes $45 million for new quality child health initiative to develop and implement quality measures and improve state reporting of quality data.

Authorizes a demonstration project to reduce childhood obesity 
Information Technology / Electronic Medical Records Establishes a program to develop a model electronic health record for Medicaid and SCHIP beneficiaries 
Individual Responsibility for Health and Lifestyle N/A 
Preventive care Not addressed 
Transparency Establishes a new quality child health initiative to develop and implement quality measures and improve state reporting of quality data. 
Drug Reimportation N/A 
Medicare Rx Drug Price Negotiation N/A 
Medical Personnel Education N/A 
Mental Health Parity Yes 
Other Provisions

No new waivers to cover parents in the CHIP program will be allowed. States waivers will be allowed to transition parents into a separate block grant.

Reduces federal match for services to parents covered through CHIP

Retains current law prohibition on waivers for coverage of childless adults. Childless adults currently covered will transition off CHIP

Restricts states' matching rate for coverage of children in families with "effective family income" higher than 300% FPL ($63,600 for a family of four in 2008) to the lower Medicaid match rate, rather than the enhanced SCHIP federal match

Prohibits HHS from approving any new state Health Opportunity Account demonstrations under the program

 
Cost $73.3 billion over 10 years 
Cost Containment Establishes new overall caps on state allotments of federal funding 
Financing Fully offset over the five and ten-year budget window by raising the federal tax on tobacco products and closing a loophole in federal law whereby physicians can refer patients to facilities they own.  
Source "Bill Summary, Children's Health Insurance Program Reauthorization Act of 2009 (CHIPRA)," House Committee on Energy and Commerce, January 2009

"H.R. 2, Children's Health Insurance Program Reauthorization Act," House Republican Conference, Jan. 14, 2009

"H.R. 2, Children's Health Insurance Program Reauthorization Act," Congressional Budget Office, Jan. 13, 2009 

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