CMS Issues Additional CHIPRA Guidance for State Leaders - February 17, 2010

The Centers for Medicare and Medicaid Services (CMS) last week issued a series of State Health Official (SHO) letters, providing states with additional guidance regarding the implementation of the Children Health Insurance Program Reauthorization Act of 2009 (CHIPRA). These letters focus on CHIP express lane eligibility, CHIP premium assistance to enroll children through employer-based coverage, and CHIP reimbursement for federally qualified health centers (FQHCs). With respect to the latter, CHIPRA required state CHIP programs to pay rates similar to Medicaid, effective October 1, 2009. The CMS letter clarifies that states could do this in one of three ways: 1) by adopting Medicaid PPS rates; 2) by developing separate CHIP PPS rates; or 3) by using an alternative payment methodology.