CHIP School Behavioral Health Incentive Act
Bill: S.3596 | Sponsor: Sen. Thune, John (R-SD)
Policy area: Health

Summary:
CHIP School Behavioral Health Incentive Act
This bill excludes expenditures relating to initiatives for school behavioral health services from the administrative spending cap under the Children's Health Insurance Program (CHIP).
Currently, states may use up to 10% of their total federal CHIP expenditures on outreach, health services initiatives, and certain other activities (i.e., nonbenefit expenditures). The bill excludes health services initiatives relating to school behavioral health services from this limitation; expenditures for these and other nonbenefit expenditures may not exceed 15% of total expenditures.

To amend title XXI of the Social Security Act to disregard State 
   expenditures on health services initiatives to increase access to 
behavioral health services for children in schools for purposes of the 
 reimbursement limitation on expenditures under the Children's Health 
Insurance Program that are not related to Medicaid or health insurance 
                              assistance.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``CHIP School Behavioral Health 
Incentive Act''.

SEC. 2. DISREGARD OF STATE EXPENDITURES ON HEALTH SERVICES INITIATIVES 
              TO INCREASE ACCESS TO BEHAVIORAL HEALTH SERVICES FOR 
              CHILDREN IN SCHOOLS FOR PURPOSES OF THE CHIP 
              REIMBURSEMENT LIMITATION ON EXPENDITURES NOT USED FOR 
              MEDICAID OR HEALTH INSURANCE ASSISTANCE.

    Section 2105(c)(2) of the Social Security Act (42 U.S.C. 
1397ee(c)(2)) is amended by adding at the end the following new 
subparagraph:
                    ``(D) Disregard of expenditures for health services 
                initiative for behavioral health services in schools.--
                            ``(i) In general.--Beginning with the first 
                        fiscal year that begins after the date of 
                        enactment of this subparagraph (or, if earlier, 
                        the fiscal year in which guidance issued by the 
                        Secretary to implement this subparagraph takes 
                        effect), the amount of any expenditures 
                        described in clause (ii) for a fiscal year 
                        shall be disregarded for purposes of applying 
                        the limitation under subparagraph (A) for such 
                        fiscal year, except that in no case shall the 
                        amount of payment that may be made under 
                        subsection (a) for a fiscal year for 
                        expenditures subject to such limitation 
                        (including expenditures described in clause 
                        (ii)) exceed 15 percent.
                            ``(ii) Expenditures described.--
                        Expenditures described in this clause are 
                        expenditures by a State to implement or operate 
                        a health services initiative under the State 
                        child health plan under this title that would 
                        improve the health of children by increasing 
                        access to behavioral health services in 
                        schools.''.
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