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Content provided by the Catalog of Federal Domestic Assistance
93.767 Children's Health Insurance Program




Balanced Budget Act of 1997, Title XXI, Subtitle J, Section 4901, Public Law 105-33; Public Law 105-100 and Medicare, Medicaid and SCHIP Balanced Budget Refinement Act of 1999 Public Law 106-113, Section 702; Medicare, Medicaid, and SCHIP Benefits Improvement Act of 2000, Title VIII, Section 801, 802, and 803, Public Law 106-554.
OBJECTIVES: Click here for help!
To provide funds to States to enable them to maintain and expand child health assistance to uninsured, low¬ income children, and at a state option, low-income pregnant women and legal immigrants, primarily by three methods: (1) obtain health insurance coverage that meets the requirements in Section 2103 relating to the amount, duration, and scope of benefits; (2) expand eligibility for children under the State's Medicaid program; and (3)reduce the number of children eligible for Medicaid, CHIP and insurance affordability programs under the ACA, who are not enrolled and improve retention of those who are already enrolled..

This solicitation addresses the third objective and seeks applications for the Connecting Kids to Coverage Outreach and Enrollment Grants Focused on Increasing Enrollment of eligible children, as provided under the Section 2113 of the Social Security Act, amended by section 303of the MACRA. A total of $29,800,000 million is available for grants to eligible entities, including states, local governments, schools, health care providers, community-based, non-profit organizations and Indian tribes or tribal consortiums, tribal organizations, urban Indian organizations receiving funds under title V of the Indian Health Care Improvement Act (25 U.S.C. 1651 et seq.), Indian Health Service providers; to the extent that a cooperative agreement awarded to such an entity is consistent with the requirements of Section 1955 of the Public Health Service Act (42 U.S.C. 300x-65) relating to a grant award to nongovernmental entities; and/or elementary or secondary schools. These grants will support outreach strategies aimed at increasing enrollment of eligible children in Medicaid and the Children’s Health Insurance Program (CHIP), emphasizing activities tailored to communities where eligible children and families reside and enlisting community leaders and programs that serve eligible children and families. They also will fund activities designed to help families understand new application procedures and health coverage opportunities, including Medicaid, CHIP and insurance affordability programs under the ACA. Refer to the funding opportunity announcement (Agency Funding Opportunity Number: CMS-XXX-XX-XXX, Competition ID Number: CMS-XXX-XX-XXX-XXXXXX) for additional information. In addition the Centers for Medicare & Medicaid Services (CMS) will also be announcing a separate FOA exclusively for Indian health care providers and tribal entities under which $3.7 million will be made available for outreach and enrollment cooperative agreements. Indian health care providers and tribal entities are permitted to apply for either or both funding opportunities as long as the work described is different in each proposal.


Formula Grants.
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No State is eligible for payments for child health assistance for coverage provided prior to October 1, 1997. Standards used to determine eligibility may include those related to geographic areas to be served by the plan. Age, income and resources, residency, disability status (as long as the standard does not restrict eligibility), access to or coverage under other health coverage, and duration of eligibility are factors. Standards may not discriminate on the basis of diagnosis. Eligibility standards must not cover higher- income children without covering lower-income children and must not deny eligibility based on a child having a preexisting medical condition. The State must ensure that only targeted low-income children are furnished child health assistance under the plan. Children found through screening to be eligible for Medicaid are to be enrolled in Medicaid. The insurance provided under the State plan does not substitute for coverage under group health plans. Coordination with other public and private programs providing creditable coverage for low-income children should occur. Child Health Assistance (other than Medicaid), must consist of any of the following: Benchmark coverage; benchmark equivalent coverage (which can be FEHBP-equivalent coverage); State employee coverage or coverage offered through the HMO with the largest insured commercial non-Medicaid enrollment in the State; existing comprehensive State-based coverage; or Secretary-approved coverage. A State child health plan must include a description of the amount (if any) of cost-sharing and must be in accordance with a public schedule. Cost-sharing may be varied in a way that does not favor higher-income children over lower-income children. No cost-sharing is permitted for well-baby and well-child care, including age-appropriate immunizations. Cost-sharing for children at 150 percent of poverty must be consistent with Medicaid, Cost-sharing for children at 150 percent of poverty and above must be based on an income-related sliding scale. The aggregate for all children in a family cannot exceed 5 percent of the family's income. The State child health plan may not impose pre-existing condition exclusions for covered benefits. States that provide for benefits through a group health plan or group health insurance coverage may permit pre-existing condition exclusions as allowed under the applicable Section of the Employee Retirement Income Security Act (ERISA) and the Health Insurance Portability and Accountability Act (HIPAA). Funds provided to a State under this Title may only be used to carry out the purposes of this Title. Health insurance coverage provided may include coverage of abortion only if necessary to save the life of the mother or if the pregnancy is the result of an act of rape or incest. States may spend up to 10 percent of their total SCHIP expenditures (Federal and State) on non-benefit activities, including: outreach conducted to identify and enroll eligible children in SCHIP; administration costs; health services initiatives; and other child health assistance. These expenditures are matched at the enhanced SCHIP matching rate and counted against both the 10 percent limit and the allotment. Monetary amounts provided by the Federal government, or services assisted or subsidized to any significant extent by the Federal government, may not be included in determining the amount of nonfederal contributions required for State matching purposes.


Applicant Eligibility:   All States and Territories may apply.

Beneficiary Eligibility:   Targeted low-income children will benefit. These children are defined (for the purposes of Title XXI) as children who have been determined eligible by the State for child health assistance under their State plan; are low-income children; or are children whose family income exceeds the Medicaid applicable income level but does not exceed 50 percentage points above the Medicaid applicable income level; and are not found to be eligible for medical assistance under Title XIX or covered under a group health plan or under health insurance coverage. This term does not include a child that is a member of a family that is eligible for health benefits coverage under a State health benefits plan on the basis of a family member's employment with a public agency in the State.

Credentials/Documentation:   States and Territories must submit and have approved by the Secretary of DHHS, a State Child Health Plan. Individuals must meet State requirements.

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Pre-application Coordination:   States are encouraged to work with DHHS in the development of their Title XXI plans. Central and regional office staff from the Centers for Medicare & Medicaid Services (CMS) and the Health Resources Services Administration (HRSA), as well as other DHHS components are available to furnish guidance and technical assistance to a State in preparing their plans. This program is excluded from coverage under E.O. 12372.

Application Procedure:   Title XXI plans and amendments are submitted by the State Governor, or designee, to the CMS Center for Medicaid and State Operations; families and children health program Group (CMSO/FCHPG). The Title XXI plan should be a stand alone document that fully addresses each relevant Section of the statutory requirements.

Award Procedure:   The CMS Administrator exercises delegated authority to approve Title XXI plans and amendments. Letters of approval will be signed by the CMS Administrator.

Deadlines:   Under the Law, a State must have an approved State Plan for a fiscal year in order to receive an allotment that year. Fiscal year 1998 a State actually had until September 30, 1999, to get their plan approved.

Range of Approval/Disapproval Time:   Section 2106 of the Law, specifies that a State plan is considered approved unless the Secretary notifies the State in writing, within 90 days after receipt of the plan, that the plan is disapproved (and the reasons for disapproval) or that specific additional information is needed. Informal clarification and discussion between the State and the DHHS review team is permitted and encouraged during the review period. This does not stop the "90-day clock." The 90-day review period may be stopped by formal written requests for additional information and clarification. The 90-day review period may be stopped as many times as necessary to obtain completed information necessary to disapprove or approve the plan. The 90-day period will resume when the finalized additional information is received by CMS.

Appeals:   If a State wishes to appeal a disapproval, it may petition for a reconsideration of this decision within 60 days after the date of receipt of the disapproval letter, by submitting a written request for reconsideration to the project officer and the regional office. States also have the option to submit a new application following the disapproval starting a new 90-day review clock.

Renewals:   An approved State child health plan shall continue in effect unless the State amends that plan or the Secretary finds substantial noncompliance of the plan in accordance with the requirements of Title XXI.


Formula and Matching Requirements:   Section 2105(b), Title XXI, provides for an "enhanced Federal Matching Assistance Percentage (FMAP)" for child health assistance provided under Title XXI that is equal to the current FMAP for the fiscal year in the Medicaid Title XIX program, increased by 30 percent of the difference between 100 and the current FMAP for that fiscal year. The enhanced FMAP may not exceed 85 percent. The formula for determining the final allotment includes: determining the number of States with approved State Plans as of the end of the fiscal year. In order for a State to receive a final allotment for a fiscal year, CMS must approve the SCHIP State Plan for that State by the end of the fiscal year. Only States with approved State Plans by the end of the fiscal year will be included in the final allotment calculation. States' final allotments will be determined in accordance with the statutory formula that is based on two factors: (1) Number of children (those potentially eligible for SCHIP), and (2) the State cost factor. These factors will be multiplied to yield a final allotment project for each State. Once the final allotment project has been determined for all the States with approved SCHIP plans, the products for each State will be added to determine a national total. Each State's product will be divided by this national total to determine a State specific percentage of the national Title available amount for allotment that each State would be eligible to receive. The State specific percentage is then multiplied by the national total amount available for allotment, resulting in the final allotment for each State.

Length and Time Phasing of Assistance:   Enrolled children receive medical services as necessary. Federal funds are obligated to the States by issuing Title XXI grant awards. To ensure that all of the appropriated funds are available to States, CMS will issue grant awards to all States with Title XXI State plans approved by the end of the fiscal year equaling the national amount available for allotment to the 50 States, the District of Columbia, and the Commonwealths and Territories for that fiscal year. Grant awards must be issued by the time the CMS/HHS accounting system closes with respect to that fiscal year.


Reports:   Section 2108 of the Law specifies that States must develop annual reports assessing the operation of their State Plan for each fiscal year, including the progress made in reducing the number of uncovered low-income children and report to the Secretary by January 1, of the following year the results of the assessment. By March 31, 2000, each State with a child health plan must submit to the Secretary an evaluation that includes an assessment of the effectiveness of the State Plan in increasing the number of children with creditable health coverage, in increasing the availability of affordable quality individual and family health insurance for children, and in coordinating recommendations for improving the program under this Title. By December 31, 2001, the Secretary must submit to Congress and make available to the public, a report based on the evaluations submitted by the States recommendations and conclusions.

Audits:   A State child health plan under Title XXI must include an assurance that the State will afford the Secretary access to any records or information relating to the plan for the purposes of review or audit.

Records:   A State child health plan must include an assurance that the State will collect the data, maintain the records, and furnish the report to the Secretary at the times and in standardized format (as the Secretary requires), in order to enable the Secretary to monitor State program administration and compliance and to evaluate and compare the effectiveness of State Plans under this Title.


Account Identification:   75-0515-0-1-551.

Obligations:   (Grants) FY 01 $6,283,000,000; FY 02 est $3,115,200,000; and FY 03 est $3,175,200,000.

Range and Average of Financial Assistance:  
For the Connecting Kids to Coverage Cooperative Agreements, the projected awards will range from ($250,000 up to $1,000,000). FY 2016, the range is from $1,042,711 (Northern Mariana Islands) to $1,995,221,518 (California).

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As of fiscal year 2001, there were 3.0 million enrollees. In fiscal year 2002, it is estimated that 3.9 million low-income uninsured children were covered. It is estimated that there will be 4.3 million enrollees in fiscal year 2003.


Regulations will be forthcoming. All guidance issued related to the Children's Health Insurance Program may be accessed through the World Wide Web at: www.hcfa/init/child.htm.


Regional or Local Office:   Contact the Regional Administrator, Centers for Medicare & Medicaid Services. (See Appendix IV of the Catalog for addresses and telephone numbers).

Headquarters Office:  
Center for Medicaid and CHIP Services 7500 Security Boulevard, Baltimore, Maryland 21244 Phone: (410) 786-3870.

Web Site Address:


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