Posted: | February 13, 2015 10:13 AM |
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From: | Senator Matt Smith |
To: | All Senate members |
Subject: | Co-sponsorship of Legislation - Continuation of the CHIP Buy-in Program |
In the near future, I will introduce legislation amending the Insurance Company Law to ensure the continuation of the CHIP Buy-in Program. As you may already be aware, the Center for Medicare and Medicaid Services (CMS) recently denied the CHIP Buy-in Program’s application for certification as a qualified health plan. Going forward, this means that any family with a child enrolled in the CHIP Buy-in Program will have to obtain alternative insurance coverage for their child or pay the federal health insurance tax penalty. CHIP has been a point of pride for Pennsylvania, and served as the model for the federal government’s State Children’s Health Insurance Program (SCHIP). Our CHIP Buy-in Program was created with the enactment of “Cover All Kids” (Act 136 of 2006). The Buy-in Program has allowed families to obtain quality affordable coverage for their children, regardless of family income. The program is available to middle class families with incomes above 300% of the federal poverty level. These families pay for the full cost of their child’s coverage (average of $226 per month). As of today, nearly 3,000 families have children enrolled in the CHIP Buy-in Program. My legislation would ensure the Buy-in Program’s survival by requiring the Insurance Department to design a benefit package that meets the minimum essential coverage (MEC) required under federal law. By offering a benefit package that meets MEC, families will be able to continue enrolling their children in the Buy-in Program without having to pay the federal health insurance tax penalty. Please join me in co-sponsoring this important legislation. If you have questions about the legislation, please contact my office at 717-787-5839. |