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March 14, 2006 Administration's Fiscal Year 2007 Budget Is Likely Still to Leave SCHIP Coverage for Low-Income Children In Jeopardy
The State Children's Health Insurance Program (SCHIP) is funded through state budget allocations and federal budget allocation. It provides insurance for more than 4 million low-income children. In federal fiscal year 2007, 18 states are projected to receive insufficient federal funding to maintain coverage for their existing enrollment of low-income children.
The Administration proposes to mitigate the funding gap by requiring all states to contribute any unspent federally allocated SCHIP funding from previous years. It plans to redistribute the unspent funds to the states facing a shortfall. However, even if states contribute unspent fiscal year 2006 SCHIP funding, a gap will still exist. This shortage may lead to coverage cuts for more than 200,000 low-income chilren.
The 18 affected states face a shortfall of $1 billion. Unspent fiscal year 2006 SCHIP funding totals $635 million. The aggregate gap is projected to be $335 million.
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