White House Rescission Request Includes $7 Billion from CHIP, $800 Million from CMS Innovation Center

On Tuesday, President Trump sent a proposal to Congress requesting that $15 billion in previously approved but unspent discretionary funding be rescinded. The rescission request includes $7 billion from the Children's Health Insurance Program (CHIP) that the White House said expired last year or is not going to be used, as well as $800 million from CMS’ Center for Medicare and Medicaid Innovation (CMMI). The rescission proposal does not affect Medicare reimbursements. The White House request includes more than 30 programs for rescission, a provision of law that allows the President to propose revoking funds that were previously authorized. Congress has 45 days from the date it received the request to vote on the rescission plan—or a revised version of it. If the plan does pass the House, it is unlikely that it will pass the Senate.

CMMI was created within CMS to test innovative payment and service delivery models to reduce program expenditures under the Medicare, Medicaid, and CHIP programs. The Affordable Care Act provided $10 billion per year for CMMI from FY2011 through FY2019, as well as $10 billion per each subsequent decade. According to the Trump Administration, rescinding the $800 million shouldn't have any programmatic effects on CMMI.

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