The Trump administration has asked Congress to approve $7 billion in cuts from CHIP, the Children’s Health Insurance Program, as part of their overall plan to slash federal spending by $15 billion. CHIP covers around 9 million children whose parents usually earn too much to qualify for Medicaid but not enough to afford private health coverage.

$2 billion in proposed cuts would come from the program’s reserve fund used to provide states with emergency money if they find themselves with higher-than-projected levels of enrollment. According to the Congressional Research Service, the fund has been used by Michigan, Iowa, and Tennessee in the last decade.  The other $5 billion would come out of CHIP’s “budget authority.” This is money the federal government has allocated to CHIP but hasn’t been approved for specific spending.  In its analysis, the Congressional Budget Office projected the suggested cuts would not affect the payments to states over the 2018-2028 period.

Impact on General Dentistry: AGD encouraged the reauthorization of CHIP in the budget act and is continuing to monitor the Trump administration’s proposal before Congress.