Trapped in America's Safety Net

A greater federal role is evidenced in CHIP as well. The program has a higher federal match than Medicaid does, to encourage states to cover as many low-income children as possible. Furthermore, when it was reauthorized in 2009, funding was increased substantially by raising the federal tobacco tax. The reauthorization also included provisions intended to maximize enrollment: states must use their allotted CHIP funds within a certain period or lose them, and they receive annual performance bonuses for exceeding their enrollment targets.