Arizona's Children's Health Insurance Program plan (CHIP), which was slated for elimination on June 15, will no longer be cut due to the federal health reform law that President Obama signed into law March 23. According to the Arizona Health Care Cost Containment System, the reprieve came in the form of a maintenance-of-effort provision applicable to children's health care through 2019. It prevents states from changing eligibility requirements in such a manner that would force individuals off existing rolls.
The Legislature now must repeal the action that eliminated the KidsCare program, AHCCCS spokeswoman Monica Coury told BNA April 7. It is expected to do so before the June 15 sunset date.
But the restoration of the program means the state's budget falls out of financial balance, and now must be reconciled either by additional spending cuts or tax increases, something Arizona's legislators have been opposed to doing.
No agreement has been reached on how the fiscal hole may be patched. Arizona's budget must be balanced, under the state's constitution.
The maintenance-of-effort requirement applies to Medicaid generally and was included in the federal stimulus bill, but was scheduled to expire at the end of 2010, according to the AHCCCS website.
The Legislature now must repeal the action that eliminated the KidsCare program, AHCCCS spokeswoman Monica Coury told BNA April 7. It is expected to do so before the June 15 sunset date.
But the restoration of the program means the state's budget falls out of financial balance, and now must be reconciled either by additional spending cuts or tax increases, something Arizona's legislators have been opposed to doing.
No agreement has been reached on how the fiscal hole may be patched. Arizona's budget must be balanced, under the state's constitution.
The maintenance-of-effort requirement applies to Medicaid generally and was included in the federal stimulus bill, but was scheduled to expire at the end of 2010, according to the AHCCCS website.
