News: CMS ends future funding for CHIP program, Medicaid workforce initiatives

CMS has issued two letters to state health authorities informing them that funding for certain Medicaid programs—i.e., continuous eligibility for Children’s Health Insurance Programs (CHIP) and workforce initiatives—have ended, according to the American Hospital Association.

According to a CMS press release, the decision to defund both of these programs comes from a concern for “[e]nsuring [the] responsible use of federal funding.”

CMS noted in its CHIP program letter that it has “concerns about the appropriateness of providing continuous eligibility for additional populations and for longer durations of time than are required or available under the Medicaid and CHIP state plans, which could affect fiscal and program integrity.”

“In some cases,” CMS said, “children could have remained continuously enrolled in Medicaid or CHIP for up to six years, even if a change in their circumstances would have otherwise made them ineligible at some point.” This could, they noted, lead to “unsustainable expenditures.”

With respect to the workforce initiative program, states previously had the financial/statutory authority to “test workforce initiatives,” like student loan repayments and workforce training. However, “[g]oing forward,” CMS noted it will instead focus on supporting actions that “demonstrate clear health benefits, cost savings, and strong accountability for federal spending.”

CMS did not note which programs outside of children’s health insurance and provider workforce initiatives would be supported instead.

Editor’s note: To read the AHA summary, click here. To read the CMS press release, click here. To read CMS CHIP program letter, click here. To read the CMS workforce letter, click here.