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ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
children's health insurance program; appropriations
Purpose
Appropriates $1,586,000 from the state General Fund (GF) and $15,141,500 from the Children's Health Insurance Program (CHIP) Fund to the Arizona Health Care Cost Containment System (AHCCCS) to provide CHIP services. Removes the Federal Medical Assistance Percentage (FMAP) trigger to instead allow the Director of AHCCCS to determine if CHIP applications should stop being processed.
Background
The Arizona CHIP was established in 1998 and is commonly referred to as KidsCare (Laws 1998, 4th Special Session, Chapter 4). KidsCare provides health care coverage for children up to 19 years of age with family income at or below 200 percent of the federal poverty level who are not eligible for any other AHCCCS coverage (A.R.S. § 36-2981). KidsCare is funded by the federal CHIP Block Grant and any state monies appropriated to KidsCare.
The FMAP is computed from a formula that considers the average per capita income for each state relative to the national average. The percentage is used to determine the matching funds rate allocated annually to certain medical and social services programs like KidsCare. The FMAP is scheduled to decrease to 90.4 percent in October 2019, and 78.9 percent in October 2020. Currently, statute requires AHCCCS to immediately stop processing new KidsCare applications and notify the Governor, President of the Senate and Speaker of the House of Representatives if Arizona's FMAP is less than 100 percent (A.R.S. § 36-2985).
S.B. 1134 appropriates $1,586,900 from the state GF and $15,141,500 from the CHIP Fund to AHCCCS in FY 2020 to administer and provide KidsCare services.
Provisions
1. Appropriates $1,586,900 from the state GF and $15,141,500 from the CHIP Fund in FY 2020 to administer and provide KidsCare services.
2. Allows the Director of AHCCCS to determine if federal and state monies appropriated for KidsCare are insufficient.
3. Removes the requirement that AHCCCS immediately stop processing KidsCare applications if Arizona's FMAP is less than 100 percent.
4. Makes technical changes.
5. Becomes effective on the general effective date.
Prepared by Senate Research
February 4, 2019
CRS/AG/kja