WASHINGTON, DC - President Barack Obama today signed a plan backed by U.S. Senator Jack Reed (D-RI) expanding and improving the Children's Health Insurance Program (CHIP). Reed, who helped craft the original program in 1997, announced the new law will increase Rhode Island's annual available allotment in federal aid from $13.2 million to $69.5 million. This federal funding will preserve coverage for the 12,500 children currently enrolled in RIte Care and allow the state to expand CHIP coverage.

CHIP provides health coverage to uninsured children whose parents do not qualify for Medicaid. The Children's Health Insurance Program Reauthorization Act of 2009 will invest $32.8 billion over four and a half years in preserving coverage for the 6.7 million children enrolled in the program and extending coverage to 4.1 million more children nationwide. In addition, the bill facilitates enrollment through expanded outreach and improves benefits by requiring dental coverage and mental health parity; investments that save taxpayer money in the future.

"After years of hard work I am pleased we were finally able to get this bill signed into law and boost Rhode Island's annual allotment in federal aid from $13.2 million to $69.5 million," said Reed, a a member of the Health, Education, Labor and Pensions (HELP) Committee. "This legislation will help us extend coverage to more kids who need it and provide significant support for successful state programs like RIte Care that deliver quality, affordable health care. This is a smart investment in our children's future that is fully paid for through an increase of the cigarette tax, without the need for deficit spending."

Since its inception twelve years ago, CHIP has succeeded in reducing the number of low-income uninsured children in Rhode Island and throughout the nation.

During the 110th Congress, Congress twice passed legislation backed by Senator Reed to expand the program, but it was vetoed both times by former President George W. Bush and efforts to override the veto fell short.

In December of 2006, Reed prevented the Senate from adjourning for the year, blocking several key bills until Congress addressed the Children's Health Insurance Program funding shortfall. Reed then brokered an agreement with fellow lawmakers that prevented over 600,000 children nationwide from potentially losing their health insurance and provided $18 million to help alleviate pressure on Rhode Island's state budget. In 2007, Senator Reed led the effort to fully fund an extension of CHIP, providing $49 million to preserve coverage for Rhode Islanders.