CBO: Reauthorizing CHIP Will Save $6 Billion

You may recall the news from a few days ago that extending the Children’s Health Insurance Program would cost only $0.8 billion, which should make it very easy to pass. As it happens, that estimate only included seven years of funding, for reasons I couldn’t quite figure out. (It’s a five-year funding bill.) But no matter. CBO has now estimated its cost assuming that it’s reauthorized for a full ten years. Here it is:

The reason the cost goes down over time is that it’s based on the savings from kids leaving Obamacare in favor of CHIP. The more expensive Obamacare is, the bigger the relative savings from getting kids into CHIP. And since the Republican tax bill makes Obamacare more and more expensive over time, it makes CHIP more and more cost-effective over time. This is stupid, but that’s what Republicans did.

In the end, then, reauthorizing CHIP saves us $6 billion over ten years. Can we pass it now?

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DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily bluster—Mother Jones' journalism is driven by one simple question: Will America move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

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