US Rep. Ryan Costello calls for passage of bill to shore up CHIP

Thousands of children in Chester County and neighboring areas are in danger of losing health insurance as Congress has not been able to agree on continuing funding for a popular bipartisan program that began in Pennsylvania more than 20 years ago.

Two months past its deadline, Congress has yet to fund the Children’s Health Insurance Program (CHIP), leaving several states scrambling for cash. Lawmakers grappling with the failed repeal of the Affordable Care Act allowed authorization of the program to lapse on Sept. 30. Although CHIP has always had broad bipartisan support, the U.S. House and Senate cannot agree on how to continue federal funding. And the Trump administration has been mostly silent on the issue.

Last week, members of the House introduced legislation that would ensure states have funding to provide services for CHIP ahead of a possible year-end deadline.

U.S. Rep. Ryan Costello, R-6, of West Goshen, and Rep. Tom Emmer, Republican of Minnesota, pressed for passage of the CHIP Stability Act, which the Centers for Medicare and Medicaid confirmed would provide the flexibility necessary to keep CHIP programs running through the end of December while the Senate considers legislation for the program’s long-term reauthorization.

“This should have been done a long time ago,” Costello, whose district encompasses parts of Chester, Montgomery, Berks and Lebanon counties, said Monday. “This is only a short-term fix, and it is something I wish I didn’t have to offer.”

The exhaustion of CHIP resources varies by each state, and the Medicaid and CHIP Payment and Access Commission (MACPAC) projects Pennsylvania’s funds will be depleted in February of 2018. But Costello reiterated the urgency of passing this legislation to provide continuity and peace of mind for families across the country.

“Nearly 177,000 children in Pennsylvania and millions across the country utilize CHIP, making this a critically important program that we must keep fully operational,” Costello said in a press release. “While it is unfortunate this legislation is necessary, we must bridge the funding gap, and I will continue to push for a long-term reauthorization of the program.”

According to the CHIP website in Pennsylvania, there are currently 5,802 children in Chester County enrolled in the program, as well as 7,965 in Delaware County and 9,942 in Montgomery County.

The momentum on CHIP reauthorization was lost amid disagreements over the Affordable Care Act. The House did extend authorization with a vote – mostly along party lines, but not until Nov. 3. The Senate itself has yet to vote. The Senate Finance Committee on Oct. 3 approved a bipartisan bill to extend the program for five years.

The sticking point is not whether to keep CHIP running but how to raise the cash needed. The House agreed to charge higher premiums to wealthier Medicare beneficiaries, cut money from the ACA’s preventive health fund and shorten the grace period for ACA enrollees who fail to make monthly premium payments.

Like the House bill, the Senate committee bill eliminated an ACA provision to increase CHIP matching funds to states by 23 percent. The increased funding would continue through fiscal year 2019 and fall to 11.5 percent in fiscal year 2020. It would be cut entirely in the following fiscal year. CHIP income eligibility levels vary by state. About 90 percent of children who qualify are from families earning 200 percent of poverty or less ($40,840 for a family of three). CHIP covers children up to age 19.

According to his website, Costello has been working to pass a long-term CHIP reauthorization.

“There is longstanding bipartisan commitment to the policy of CHIP, but currently, there are a variety of perspectives in Congress as how to pay for CHIP. While the funding is not expected to be used before this deadline, I have been urging a swift resolution to reauthorize the program,” he said in a press statement.

To contact staff writer Michael P. Rellahan call 610-696-1544.