Members of the Senate Health and Human Services Committee voted unanimously on Thursday Feb. 20 to approve House Bill 72, which increases the amount of money allocated to the Children's Health Insurance Program (CHIP).

The $1.5 million increase in funds would be taken from the Tobacco Settlement Restricted Account, which the state set up to receive money from its settlement with major tobacco companies.

CHIP receives approximately $5.5 million from the tobacco funds, and receives an additional $20 million from the federal government in a 4 to 1 matching program. The $1.5 million increase would increase the federal matching funds by approximately $6 million.

CHIP was created in 1997 to provide medical and dental insurance to children whose families don't qualify for Medicaid, but don't receive insurance benefits through work and can't afford to pay for adequate medical coverage.

Enrollment was capped in 2001, meaning for every new child enrolled, one child has to leave the program. Supporters of H.B. 72 requested that the bill be passed to increase the program's funds, resulting in a larger enrollment than the current enrollment of 26,582.

Health policy analyst Judy Hillman said by removing the cap and increasing the program's funding, "we can really deliver on the great promise of CHIP."

Supporters also said money allocated to CHIP from the tobacco fund won't decrease allocations to other programs funded by the tobacco account.

House Bill 72 goes to the Senate with a favorable recommendation.



Copyright Brigham Young University 24 Feb 2003