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House advances bill to allow continuous CHIP enrollment, ban denials for preexisting conditions
Summary
The House passed First Substitute House Bill 3 26 to let eligible children enroll continuously in the Children's Health Insurance Program and bar denial based on diagnosis or preexisting conditions; sponsors said funding and nonlapsing balances and federal matching will support the change.
Representative Greg Curtis introduced First Substitute House Bill 3 26 to remove enrollment caps for Utah's Children's Health Insurance Program (CHIP) and to prohibit denial of enrollment based on diagnosis or preexisting conditions. "[A] may not be denied enrollment due to a diagnosis or preexisting condition," Curtis said, summarizing the bill language and the department restriction on closing enrollment when a child is otherwise eligible. He described the change as shifting CHIP from episodic open-enrollment periods to continuous eligibility for children who meet existing income and coverage criteria.
Curtis also described fiscal mechanics in the bill and the fiscal note: "the enactment of this legislation will allow an appropriation of $2,630,000 from nonlapsing balances and a matching of $8,000,000 from federal funds in 2009," he said. Representatives questioned program caps and potential sudden demand. Representative Wimmer asked whether continuous enrollment would "in essence remove any type of cap to CHIP" and whether a sudden surge in eligible applicants could force the Legislature to backfill costs. Curtis replied eligibility criteria—including household gross income set at 200% of the federal poverty level and Medicaid ineligibility—remain unchanged, and that if a large surge occurred the state would be responsible for honoring eligibility under the statute.
Representative Dougal asked about administrative efficiency and whether the state’s current contractors (PEHP and Molina) could deliver cost savings. Curtis said he supported seeking administrators who could lower per-child delivery costs "while still providing the benefits." He emphasized that the bill leaves eligibility criteria intact and focuses on access and continuity for eligible children.
The House opened and closed a recorded vote on the measure; First Substitute House Bill 3 26 passed the House and was forwarded to the Senate with a recorded tally of 70 yes, 3 no, and 2 absent.
Next steps: the bill is transmitted to the Senate for further consideration.
