The methodology by which CMS calculates the allotments under the Children's Health Insurance Program (CHIP) for each jurisdiction to conform to the requirements of the Children's Health Insurance Program Reauthorization Act (CHIPRA) (PubLNo 111-3) has been proposed by CMS.
Beginning with fiscal year (FY) 2009, allotments are available only for two years. FY 2009 allotments will be calculated based upon the spending reported from FY 2008, as of November, 2008, or estimated based on expenditures through February, 2009, if states filed them by March 31, 2009; allotments may be readjusted based on actual expenditures reported by May 31, 2009. FY 2010 allotments will be based upon FY 2009 allotments multiplied by each state's allotment increase factor, which is based on the child population growth factor and growth in per capita health care spending. The formula will be rebased in FY 2011, multiplying the payments to a state during FY 2010, including redistributions of unspent allotments from prior years and any payments from the child enrollment contingency fund, by the allotment increase factor.
CMS may publish either preliminary or final allotments in the Federal Register.
Proposed rule, 74 FR 47517, Sept. 16, 2009.
For more information on this and related topics, consult the CCH® Medicare and Medicaid Guide.
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