tci Medicare Compliance & Reimbursement - 2003 Issue 26

SCHIP: Finance Acts To Preserve SCHIP Funds

The Senate Finance Committee June 12 unanimously approved legislation to prevent states from losing $2.7 billion in unspent State Children's Health Insurance Program funds. States have three fiscal years - including the year in which they receive the funds - to spend federal SCHIP allocations. Unspent dollars are redistributed for one year among states that have used up their entire allocations. Any money left over after that year reverts to the federal treasury. Funds allocated right after SCHIP's 1997 creation accumulated "while states worked through the start-up process and established functioning programs," senior panel Democrat Max Baucus...

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