Myths & Truths About CHIP

By Vince Leibowitz on Jan 24, 2007 in 80th Legislature, Texas Public Policy & Taxation

This was distributed by Rep. Garnett Coleman’s Office. It is so good, I think it bears republication.

The Texas Public Policy Foundation, the Texas Conservative Coalition, and other conservative groups have attempted to dismiss the needs of CHIP by promoting certain myths.

Here’s a sampling of myths purported by those groups:

Conservative Myth	Truth About CHIP

CHIP is 100% fully funded at the state level.	CHIP is fully funded at the rate set by the Legislature. Since 2003, the leadership has cut state funds for CHIP by over $50 million, and cut all general revenue funds by over $150 million.
We aren’t losing federal funds, or any money, from CHIP or Medicaid.	$1 in net cuts in funding for Medicaid and CHIP results in¹: $3.66 in total health care funding losses $13.18 in total expenditure losses $4.80 in personal income losses $6.92 in gross state product losses $1.59 in increased insurance premiums $1.81 in retail sales losses $0.58 in local government cost increases $1.52 in out-of-pocket and other private health care costs
New $3.5 million outreach shows commitment to CHIP	Prior to 2003, the state was spending $9.9 million on outreach to assist families that were enrolling and renewing for CHIP.
Hurricane Katrina evacuees have inflated the numbers	9,805 children that are Hurricane Katrina evacuees have enrolled in children’s Medicaid (1% of total enrollment).² 316 children that are Hurricane Katrina evacuees have enrolled in CHIP (1% of total enrollment).³

1Source: The Perryman Group. “The Perryman Report: Special Report. An Assessment of the Impact of the Health Care Sector on the Texas Economy, with Emphasis on the Situation Confronting Hospitals and the Effects of Medicaid and Children’s Health Insurance Program (CHIP) Funding Reductions.” February, 2005.

2 Source: Health and Human Service Commission response to inquiries made by the Office of State Representative Garnet Coleman. October 16, 2006.

3 Source: Health and Human Service Commission response to inquiries made by the Office of State Representative Garnet Coleman. October 20, 2006.

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