Tennessee may receive approximately $1.01 billion in new federal funds to increase children’s health coverage over the next five years, according to a report issued today by the consumer health organization Families USA. As a result, funding for the program will allow Tennessee to expand health coverage to many more of its 151,480 uninsured children.
Both the Senate and the House of Representatives have already passed budget resolutions setting aside $50 billion above current spending for the State Children’s Health Insurance Program (SCHIP) and Medicaid over the next five years.
However, these new funds will become available to states only if two things happen: First, Congress must reauthorize SCHIP (since the program’s original 10-year authorization expires on September 30). Second, Congress must “pay for” this added $50 billion by providing new revenues and/or cutting other federal expenditures by a commensurate amount. Key congressional votes on this are expected in July.
“The stakes are high for Tennessee’s children, especially the 151,480 children who are currently uninsured,” said Ron Pollack, Executive Director of Families USA. “This $1.01 billion in new funding will enable these children to receive needed care that will protect their health and enable them to learn and develop into productive Americans.”
According to the Families USA report, the additional money that could be provided to Tennessee would not only help children, but it would also improve Tennessee’s economy. Over the next five years, the $1.01 billion in new federal funding could create:
- $442 million in increased business activity;
- $157.6 million in increased wages; and
- 4,538 additional jobs for state residents.
Federal funding for SCHIP is provided in an annual allotment that becomes available to Tennessee with state matching funds. The federal government pays Tennessee $2.93 for each dollar the state spends on CoverKids. This matching formula is more generous than the matching formula provided to Tennessee under the Medicaid program.
The Families USA report is based on data from the Centers for Medicare and Medicaid Services (CMS) and is predicated on the current state-by-state SCHIP allocation formula and Medicaid expenditures for children. The economic impact in Tennessee of the new federal funding for children’s health coverage is based on the Regional Input-Output Modeling System (RIMS II) created by the U.S. Department of Commerce, Bureau of Economic Analysis.
