On January 22, 2018, Congress reauthorized funding for the Children’s Health Insurance Program (CHIP) through Federal fiscal year (FFY) 2023. The CHIP provisions are included as the Healthy Kids Act under H.R. 195, Division C.  Division B extends a short-term continuing resolution (CR), which was necessary to reverse a three-day federal government shut-down. Division D affects certain health care related taxes established under the Affordable Care Act (ACA). The President signed the bill into law on January 22.

The Healthy Kids Act reauthorizes federal funding for CHIP covered health care services and administration, as well as special CHIP provisions such as:

  • the Child Enrollment Contingency Fund
  • the Childhood Obesity Demonstration Project
  • the Pediatric Quality Measures Program
  • the Qualifying States Option
  • the Express Lane Eligibility Option
  • other Outreach and Enrollment programs

The Healthy Kids Act sets aggregate national limits in federal CHIP funding:

  • $21.5 billion in federal matching CHIP funds for FFY 2018
  • $22.6 billion for FFY 2019
  • $23.7 billion for FFY 2020
  • $24.8 billion for FFY 2021
  • $25.9 billion for FFY 2022
  • the same $25.9 billion for FFY 2023 (via three separate provisions for that year)

H.R. 195, Division D, affects the following health care related taxes under the ACA:

  • Extends a moratorium on the medical device tax through calendar year 2019
  • Delays the “Cadillac tax” on high-cost employer sponsored health insurance until CY 2022
  • Suspends a tax on health insurers for CY 2019

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