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House approves shift of tobacco-settlement funds from CHIP to Medicaid amid program migration
Summary
The House passed Senate Bill 121 to move tobacco master-settlement dollars that formerly supported CHIP to Medicaid to follow children who shift programs; sponsors said the change tracks enrollment shifts rather than creating new spending.
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The Utah House of Representatives on Feb. 20 approved Senate Bill 121, a measure to redirect portions of tobacco master-settlement funds that currently support the Children—s Health Insurance Program (CHIP) into the Medicaid program as CHIP enrollees move into Medicaid coverage.
Representative Ray, who sponsored the bill on the floor, said a subset of children currently served through CHIP will now be served by Medicaid, and the bill ensures the state—s tobacco-settlement appropriation follows those children so Medicaid bears the attendant costs. Ray said the money originates in the national 1998 Master Settlement Agreement with tobacco companies and has historically been appropriated back to CHIP to cover program costs.
Representative Christensen and others sought assurance that settlement receipts were being used for health-related purposes, noting broader concerns about using designated settlement funds for general purposes. Ray responded that while more tobacco-settlement money should ideally fund prevention and cessation programs, this bill is a targeted funding shift to match the moved population and not a repurposing of unrelated settlement receipts.
The House voted to pass SB121 unanimously in recorded action; the clerk recorded 68 yeas, 0 nays, with 7 absent. The bill will return to the Senate for final signatures and transmittal to the governor.
