Keep Kids Covered Act
- Sponsor
- Rep. Castor, Kathy [D-FL-14]
- Committees
- Energy and Commerce Committee (primary)
- Last action
- Jul 23, 2025
Bottom line
This bill aims to provide more stable health insurance coverage for millions of children and former foster youth by extending continuous eligibility periods under Medicaid and CHIP, reducing coverage gaps due to administrative hurdles.
What it actually does
The "Keep Kids Covered Act" amends the Social Security Act to expand continuous eligibility for children under Medicaid and the Children's Health Insurance Program (CHIP). Specifically, it extends continuous eligibility for deemed newborns under Medicaid and CHIP from one year to six years, and for children aged 6 through 18, it increases the continuous eligibility period from 12 months to 24 months. Additionally, it ensures former foster youth remain eligible for Medicaid until age 26, clarifying its application to all eligible foster youth. The bill also requires states to annually update contact information for continuously enrolled individuals and inform them of their continuous eligibility status.
Proponents argue
Proponents argue that extending continuous eligibility periods for children and former foster youth will significantly improve health outcomes by preventing gaps in coverage, ensuring consistent access to care, and reducing administrative burdens for families and states. They emphasize that stable coverage leads to better preventative care, fewer emergency room visits, and improved long-term health and educational attainment for children. For former foster youth, it provides a critical safety net during a vulnerable transition period.
Opponents contend
Opponents may argue that extending continuous eligibility periods could increase state Medicaid and CHIP costs, potentially straining state budgets without corresponding federal funding increases. Concerns might also be raised about individuals remaining eligible who might otherwise lose eligibility due to changes in income or circumstances, leading to inefficiencies or coverage for those who could afford private insurance. Some might also argue it reduces state flexibility in managing their health programs.
The bill is short and relatively straightforward, allowing for a quick and comprehensive understanding of its core provisions.
Section 2(a)(1)
Extending Medicaid Continuous Eligibility for Newborns to Age 6
This provision amends Section 1902(e)(4) of the Social Security Act to change the continuous eligibility period for "deemed newborns" under Medicaid from one year to six years. This means that once a newborn is determined eligible for Medicaid, they will remain eligible for benefits until they turn six years old, regardless of changes in family income or circumstances, as long as they remain a resident of the state.
Supporters argue
Supporters argue this ensures young children receive critical early childhood healthcare without interruption, which is vital for their development and reduces the administrative burden of frequent eligibility redeterminations for families and state agencies.
Critics contend
Critics might argue this could lead to some children remaining on Medicaid even if their family's financial situation improves, potentially increasing state costs for those who might otherwise transition to private insurance.
Tradeoffs
Balances the administrative efficiency and health benefits of continuous coverage against potential costs and the principle of targeting benefits based on current financial need.
Section 2(a)(2)
Extending CHIP Continuous Eligibility for Newborns to Age 6
This provision makes a parallel change for the Children's Health Insurance Program (CHIP), extending continuous eligibility for newborns from one year to six years. It also clarifies that if a child enrolled in CHIP becomes eligible for full Medicaid benefits during this 6-year period, they can be transferred to Medicaid for the remainder of their continuous eligibility.
Section 2(b)(1)
Extending Medicaid Continuous Eligibility for Older Children to 24 Months
This section amends Section 1902(e)(12) of the Social Security Act to extend the continuous eligibility period for children aged 6 through 18 under Medicaid from 12 months to 24 months. This means that once a child in this age group is determined eligible, they will remain eligible for two years, provided they remain a resident of the state.
Section 2(b)(1)(F)
Ensuring Continuous Medicaid Eligibility for Former Foster Youth Until Age 26
This provision adds a new subparagraph to Section 1902(e)(12) of the Social Security Act, explicitly requiring states to provide continuous Medicaid eligibility for former foster youth until they attain age 26, as long as they remain residents of the state. This codifies and clarifies existing policy, ensuring this vulnerable population maintains health coverage during a critical transition to adulthood.
Section 2(c)
State Process for Updating Contact Information and Informing Continuously Eligible Individuals
This section amends both Medicaid (Section 1902(a)) and CHIP (Section 2107(e)(1)) to require states to establish a process for annually obtaining up-to-date contact information for individuals enrolled under continuous eligibility provisions for longer than 12 months. States must also inform these individuals of their continuous enrollment status and the remaining duration of their eligibility period.
Section 3
Clarifying Effective Dates for Former Foster Youth Medicaid Coverage
This section amends the SUPPORT for Patients and Communities Act to clarify the effective dates for Medicaid coverage continuity for former foster youth up to age 26. It specifies that the policy applies to foster youth who turned 18 on or after January 1, 2023, and, importantly, extends its application to all other foster youth (those who turned 18 before January 1, 2023) starting 180 days after the enactment of the "Keep Kids Covered Act." This ensures comprehensive coverage for all eligible former foster youth.