Texas Seeks to Postpone Implementation of CHIP Eligibility and Enrollment Rule

Texas leaders are continuing their efforts to avoid implementing a federal rule that would reduce administrative barriers for children enrolling in the the Children’s Health Insurance Program (CHIP).

Back in April 2024, the federal government — specifically the Centers for Medicare & Medicaid Services (CMS) — finalized a new rule simplifying the eligibility and enrollment process for CHIP along with Medicaid.

Then, in 2025, Congress postponed implementation of the Eligibility and Enrollment Rule until 2034 as part of HR 1, the budget reconciliation bill.

However, parts of the rule pertaining to CHIP — including a ban on lockout periods or pre-enrollment waiting periods — should have taken effect prior to HR 1. Health care advocates in Texas have urged the state to implement those steps in compliance with the federal rules.

Now, Texas health officials have formally written to CMS to explain that they do not intend to implement the new CHIP rules.

We will continue to monitor the situation and encourage state leaders to implement the new rules to ensure that eligible children have access to the health insurance they need.