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States receive bonuses for boosting enrollment for uninsured children in Medicaid

Fifteen states received a total of $206 million for making strides in enrolling uninsured children in Medicaid. This year’s bonuses are twice the amount awarded to 10 states last year.

“Today’s announcement highlights the ongoing and committed efforts by states to improve access to health coverage programs and take the aggressive steps necessary to enroll eligible children,” said HHS Secretary Kathleen Sebelius in a press release. “Their actions reflect President Obama’s serious commitment to assuring that our country’s children get the health care they need. These performance bonuses demonstrate our support for the effective strategies these states have undertaken.”

Funding for the “performance bonuses” was included in the Children’s Health Insurance Program Reauthorization (CHIPRA) legislation signed into law by President Obama in February 2009. The CHIPRA established two sets of performance goals that states must meet to qualify for a bonus – taking specific steps to streamline their enrollment and renewal processes to make it easier for families with eligible children to gain coverage and documenting a significant increase in the number of children enrolled in Medicaid.

States receiving bonus awards include: Alabama, Alaska, Colorado, Illinois, Iowa, Kansas, Louisiana, Maryland, Michigan, New Jersey, New Mexico, Ohio, Oregon, Washington state and Wisconsin. Award amounts ranged from more than $2 million to more than $54 million, according to the release.

States that received performance bonuses last year were able to extend benefits to children who otherwise would have been without health coverage.

CHIPRA included a series of provisions and additional funding to help states cover more children. A boost in Medicaid reimbursement rates authorized by the American Recovery and Reinvestment Act (ARRA) also provided relief to states with suffering economies, enabling them to extend care to eligible children. These increased Medicaid matching funds are available through June 30, 2011.

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