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January 2010 St@teside

Nine States Receive Medicaid Performance Bonus Awards

The Children’s Health Insurance Program Reauthorization Act (the reauthorization law known as CHIPRA), enacted in 2009, included a number of significant program and financing changes that affected both Medicaid and the Children’s Health Insurance Program (CHIP).  In particular, for states that are focused on increased enrollment and retention, a new and important financial support was established: the Medicaid Performance Bonus. The bonus recognizes the additional costs for states making a concerted effort to enroll eligible children in Medicaid above targets specified in the law, and therefore is designed to help offset some of these costs.

In December, the Department of Health and Human Services awarded more than $72 million to nine states for the significant progress that they have made in improving access to children’s coverage through Medicaid and the state CHIP programs. The states receiving funds include: Alaska, Alabama, Illinois, Louisiana, Michigan, New Jersey, New Mexico, Oregon, and Washington.

Funding will be available for states for future years.