In a letter sent to state health officials on May 7, CMS clarified that states would have the opportunity to suggest other strategies than what were in the agency’s original directive to prevent crowd-out in State Children’s Health Insurance Program (SCHIP) enrollment at high income levels. The letter also reiterates that none of the crowd-out strategies outlined last year need to be applied to children currently enrolled in SCHIP, as some states had believed. Also, states do not need to apply the 12-month waiting period or any cost-sharing requirements to children in families with incomes at less than 250 percent of FPL, and should not apply any crowd-out policies to unborn children eligible for SCHIP. Read the letter.
