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CHIP TIPS: CHIP Financing Structure

This brief, the fourth in a series, examines important changes to CHIP’s financing structure under the Children’s Health Insurance Program Reauthorization Act of 2009.

The law includes a number of important programmatic and financing changes that affect both Medicaid and CHIP. Among the most important changes include significant new funding for the CHIP program, changes in the formula for distributing CHIP funds among states and a new option for states to decide whether to use CHIP or Medicaid funding to cover children. Taken together, the financing changes provide states with reliable federal matching funds adequate to both continue and expand their CHIP programs.

Issue Brief (.pdf)