What does ObamaCare do to SCHIP?

What does ObamaCare do to SCHIP? According to Americans for Prosperity Foundation, it simply shatters any semblance of state control.

The State’s Children’s Health Insurance Program (SCHIP) was scheduled to expire, yet again, at the end of 2013. ObamaCare extended funding and authorization through the end of 2015. http://docs.house.gov/energycommerce/MEDICAID.pdf

The Arizona legislature passed and Gov. Brewer signed a new budget canceling Arizona's SCHIP program (called KidsCare) in order to cover a $2.6 billion budget gap. This was done before the passage of the healthcare legislation. Now the Arizona Medicaid agency (AHCCCS) is arguing that "maintenance of effort" requirements in the new law make reduction of benefits for children a non-option, as that would result in the end of Medicaid matching funds.

http://www.azahcccs.gov/shared/news.aspx#FY_2011_State_Budget
http://www.azahcccs.gov/reporting/Downloads/HealthCareReform/GovernorBrewerLetter_03-25-10.pdf

http://www.azleg.gov/jlbc/FederalHealthcare.pdf (analysis by Arizona Joint Leg. Budget Committee)

Analysis: Aside from the new populations that healthcare "reform" is going to dump into Medicare and Medicaid, the bill also severely restricts the states' freedom in terms of their SCHIP programs.

Just when states need the most fiscal flexibility in order to balance their severely out-of-balance budgets, the federal government has mandated that current levels of SCHIP eligibility cannot be curtailed without the loss of all federally-provided Enhanced FMAP (FMAP - percentages for the state and federal share of expenditures for certain federal programs) funds.

The illusion of state-controlled Medicaid and SCHIP programs is now totally shattered.