West Virginia Increases Certain CHIP Reimbursements to Prevent Pending Forfeiture of Federal Allotment

West Virginia's CHIP program has boosted by 25% its reimbursement rates to providers who perform preventive services in an effort to prevent the state from having to return $10 million in unused federal funds at the end of September, the Charleston Daily Mail reports. According to CHIP Director Sharon Carte, the program still has $10 million in federal funds remaining from its initial 1999 allocation, and the [majority of the] amount left on Sept. 30 will "revert back to the federal government" under CHIP program rules. Carte added that the 25% increase for physician checkups, immunizations, eye exams and dental checkups would make providers, especially dentists, more willing to see CHIP beneficiaries. She said that she "did not know" how much the increase would cost the state, but added that even if the entire $10 million is not spent, West Virginia will "likely get half of it back," as "states that spent their whole allocation would get the other half from states that didn't." She also said that unused funds would not pose a problem in the future, as West Virginia has increased its CHIP enrollment from 12,000 children in 1999 to the current 21,300.

Reaction Mixed
State Rep. Mary Compton (D) praised the rate increase, saying, "A number of dentists ... have been reluctant to really take [CHIP beneficiaries]. If the price goes up, more dentists will see them." But Richard Stevens of the West Virginia Dental Association questioned whether the move would work, as many dentists are "booked up" with back-to-school appointments and most "do not generally ask someone who calls to make an appointment whether they are insured by CHIP." Further, Rep. Harold Michael (D) questioned the value of "spending for spending's sake," saying, "If access is a problem and if the reimbursement rate is too low, then obviously that's something that should be looked at. [But] even if it's federal money, it's taxpayers money and ultimately it doesn't makes sense to spend money just to be spending it" (Tranum, Charleston Daily Mail, 8/24). For further information on state health policy in West Virginia, visit State Health Facts Online.