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Arizona Funds Dwindling for Children’s Health Insurance Program

Thanks to Congress failing to extend funding on September 30, Arizona is now one of several states that are running low on funds to keep the children’s health insurance program (CHIP) active.

This finding comes from a report recently published​ by the Georgetown University’s Center for Children and Families. The report found that along with Arizona, California, the District of Columbia, Minnesota, Ohio and Oregon could also run out of funding for the Children’s Health Insurance Program by the end of the year or early in January. In Arizona, the program, known as KidsCare, is administered through the Arizona Health Care Cost Containment System (AHCCCS)

The KidsCare program is geared towards children whose families do not qualify for Medicaid, but cannot afford to pay the premiums or other cost associated with private insurance. About 23,000 children are insured through KidsCare. It allows children to see a doctor on a regular basis, but also gives parents a piece of mind knowing that their children’s healthcare needs will be taken care of in the event of an emergency.


Arizona is now left trying to figure out how to keep the already dwindling funds from completely running out. Some see this crisis as a result of Congress’ failure to meet the deadline to extend federal funding for the program. To keep KidsCare running, Arizona has received some additional finding from the Centers for Medicaid and Medicare Services.

Spokeswoman for AHCCCS said that depending on enrollment numbers, “We expect we will be able to support the program through at least November maybe into December as well.” She continued to say that local policymakers will now have the job to “decide how to continue the program” if funds are exhausted by or before the end of the year. If funds are unable to be found, residents receiving benefits from KidsCare will be given 30-days’ notice in the form of letters notifying them of any changes happening to the program.

The program is waiting until legislation votes whether to extend funding before notifying benefit recipients. This week, the House of Representatives is expected to vote on the legislation to extend funding for CHIP.

This is not the first time that funds have been frozen for KidsCare. This is reminiscent of 2010, when Arizona state legislators froze KidsCare enrollment to cut state spending. At the time, the state was paying for a part of the program. KidsCare was restored in 2016, and now the federal government funds it entirely.

The hope is that policy makers and residents can come to a solution that allows Arizona’s children to continue to be covered by the KidsCare program.