Issue Brief 14-02
January 8, 2014

The Children’s Health Insurance Program Reauthorization Act of 2009 (CHIPRA, P.L. 111-3) provided a new opportunity for states to obtain bonus payments for simplifying their Medicaid and CHIP programs and successfully enrolling children who are eligible for Medicaid. These payments are designed to help states offset a portion of their costs associated with increased enrollment.

On December 30, 2013, the Department of Health and Human Services (HHS) announced that 23 states received $307 million in performance bonuses in fiscal year (FY) 2013. These states also received bonuses in FY 2012, and nine states have been awarded funds each year since the program began in FY 2009. FY 2013 marks the final year of the program’s authorization. In total, states have received $1.1 billion in performance bonuses over the five-year period.