Pennsylvania’s CHIP Program Did Not Use Entire Funding Allotment Between 1997 and 2001, State Audit Finds

Over the last three years, Pennsylvania's CHIP program spent fewer than half the funds available to it and did not enroll as many children as officials had estimated, according to a state audit, the Pittsburgh Post-Gazette reports. The audit by state Auditor General Robert Casey Jr. examined the state Insurance Department's administration of the program, finding that of the $710 million in state and federal funds available from 1998 to 2001, the program spent $345 million. As a result, the department was forced to "forgo" $85 million in unused state funds and $18.4 million in unused federal funds and does not expect to use the remaining $261 million in total funds, the Post-Gazette reports. The audit indicates that the program did not use its entire allotment because enrollment numbers did not grow as quickly as expected. In March 1998, 55,397 children were enrolled in the program; as of March 2002, 121,118 children were enrolled, mostly due to increased outreach efforts (Bull, Pittsburgh Post-Gazette, 5/3).