Vice President for Health Policy
Millions of children would face the risk of losing their health coverage or going without needed care under the harmful changes to the Children’s Health Insurance Program (CHIP) and Medicaid that President Trump proposes in his budget. While proposing just a two-year extension of federal CHIP funding, the budget would immediately shift significant costs to states, reduce benefits and raise out-of-pocket costs for near-poor older children, and eliminate tools that help states enroll more eligible children. That’s on top of the large and growing cuts to children’s coverage that states would undoubtedly make over time due to the federal Medicaid funding cuts under the House-passed bill to repeal the Affordable Care Act (ACA) — which the budget not only incorporates but significantly increases.
The President’s budget would:
Of particular concern, a substantial number of children now on CHIP wouldn’t be eligible for marketplace subsidies at all due to the “family glitch” — under which the children and spouse of an employee with access to employer-based coverage are ineligible for marketplace subsidies, even if the employee can only afford employer-offered coverage that’s limited to him or her and doesn’t include other family members.
Congress should reject these proposals and instead enact a five-year CHIP funding extension that allows states to fully sustain their existing CHIP programs, as both the Medicaid and CHIP Payment and Access Commission (MACPAC) and the National Governors Association have recommended.