Federal Financing for the State Children's Health Insurance Program (CHIP) Page: 9 of 16
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Federal Financing for the State Children's Health Insurance Program (CHIP)
Sources: Defense and Full-Year Appropriations, 2011 (P.L. 112-10); Consolidated Appropriations Act, 2012 (P.L. 112-74);
Consolidated and Further Continuing Appropriations Act, 2013 (P.L. 113-6); Consolidated Appropriations Act, 2014 (P.L. 113-
76); Continuing Appropriations Resolution, 2015 (P.L. 113-164); Consolidated and Further Continuing Appropriations Act,
2015 (P.L. I 13-235); Continuing Appropriations Act, 2016 (P.L. 114-53); Consolidated Appropriations Act, 2016 (P.L. 114-
1 13); Continuing Appropriations and Military Construction, Veterans Affairs, and Related Agencies Appropriations Act, 2017,
and Zika Response and Preparedness Act (P.L. I 14-223); Further Continuing and Security Assistance Appropriations Act, 2017
(P.L. 114-254); and Consolidated Appropriations Act, 2017 (P.L. I 15-31).
Note: Totals may not add due to rounding.
State Allotments
State allotments are the federal funds allocated to each state and territory for the federal share of
its CHIP expenditures. CHIPRA established a new allocation of federal CHIP funds among the
states based largely on states' actual use of and projected need for CHIP funds." There are two
formulas for determining state allotments: an even-year formula and an odd-year formula.12
In even years, such as FY2016, state CHIP allotments are each state's allotment for the prior year
plus any Child Enrollment Contingency Fund (described below) payments from the previous year
adjusted for growth in per capita National Health Expenditures and child population in the state.
In odd years, state CHIP allotments are each state's spending for the prior year (including federal
CHIP payments from the state CHIP allotment, payments from the Child Enrollment Contingency
Fund, and redistribution funds) adjusted using the same growth factor as the even-year formula
(i.e., per capita National Health Expenditures growth and child population growth in the state).
Since the odd-year formula is based on states' actual use of CHIP funds, it is called the re-basing
year because a state's CHIP allotment can either increase or decrease depending on that state's
CHIP expenditures in the previous year. Figure 3 shows how the re-basing for FY2011
significantly decreased the aggregate amount for state allotments from FY2010 to FY2011, and in
FY2015, CHIP allotments increased due to state spending in FY2014.
" Prior to CHIPRA, the territories received 0.25% of the national appropriation amount and the remainder was divided,
or allotted, among the states based on a formula using survey estimates of the number of low-income children in each
state and the number of those children who were uninsured.
12 2104(m) of the Social Security Act.Congressional Research Service
6
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Mitchell, Alison. Federal Financing for the State Children's Health Insurance Program (CHIP), report, September 29, 2017; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc1042336/m1/9/: accessed March 28, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.