1 FINANCING ISSUES IN SCHIP Jeanne Lambrew, PhD Associate Professor, George Washington University Senior Fellow, Center for American Progress January 13,

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1 FINANCING ISSUES IN SCHIP Jeanne Lambrew, PhD Associate Professor, George Washington University Senior Fellow, Center for American Progress January 13, 2007

2 AGGREGATE FUNDING SCHIP Spending and Federal Funding Note: Allotments and spending include states and territories. Source: C. Peterson, SCHIP Financing: Funding Projections and State Redistribution Issues (Washington, D.C.: Congressional Research Service, 2006). Dollars in Billions

3 FUTURE BASELINE Federal Funds Needed to Maintain SCHIP Coverage (FY, Dollars Billions) Source: Broaddus and Park, 2006; assumes moderate expenditure growth. Estimated Number of Children Losing Coverage: 2.1 Million

4 DISTRIBUTION OF FUNDING SCHIP Spending as Percent of Allotments, FY 2005 Source: C. Peterson, SCHIP Original Allotments: Funding Formula Issues and Options (Washington, D.C.: Congressional Research Service, 2006). Only 9 States Had Allotments Within +/– 10% of Spending RI

5 FUNDING OPTIONS Better Use of Existing Funding Improvements in Current Structure Lifting Allotments Accountability Simplicity Federalism Fiscal Conservatism Coverage Expansion Options Themes & Values