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Congresina Reeac Seric


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                                                                                        Updated February 4, 2019

State Health Insurance Assistance Program (SHIP)


Background
The State Health Insurance Assistance Program (SHIP)
provides funding to states for outreach, counseling, and
information assistance to Medicare beneficiaries and their
families and caregivers on Medicare and other health
insurance issues. The national program is authorized under
Section 4360 of the Omnibus Budget Reconciliation Act of
1990 (OBRA   '90; P.L. 101-508; 42 U.S.C. 1395b-4).

The Consolidated Appropriations Act of 2014 (P.L. 113-76)
transferred SHIP administration from the Centers for
Medicare and Medicaid Services (CMS) to the
Administration for Community Living (ACL). This transfer
reflected the existing formal and informal collaborations
between the state SHIP projects and the networks that ACL
serves. An interim final rule, effective February 4, 2016,
reflected the transfer from CMS to ACL (81 Federal
Register 5917, February 4, 2016). The interim final rule
was adopted without change on June 3, 2016 (81 Federal
Register 35643, June 3, 2016).

There are SHIP projects in all 50 states, as well as the
District of Columbia, Guam, Puerto Rico, and the Virgin
Islands. Of the 54 SHIP grant programs, about two-thirds
are administered by State Units on Aging established under
the Older Americans Act. The remaining one-third are
located in their state insurance commissioner offices.

Grant Activities
SHIP  grants provide funding for states to plan and operate
various information, counseling, and assistance activities.
Medicare beneficiaries receive assistance through one-on-
one counseling in person, by telephone, on the Internet, or
through email from paid and volunteer SHIP counselors.
State SHIP projects also conduct public outreach and
education activities to inform beneficiaries about coverage
and enrollment options.

The SHIP  grants support a community-based network of
state and local programs that provide personalized
assistance to Medicare beneficiaries and their families on
questions related to Medicare, supplemental insurance
policies (Medigap), Medicare Advantage plans, Medicare
Savings Programs, Medicaid eligibility and coverage issues,
long-term care insurance, and other health insurance issues.

Since the passage of the Medicare Prescription Drug,
Improvement, and Modernization Act of 2003 (P.L. 108-
173), a major focus of SHIP-funded programs has been to
help beneficiaries obtain Medicare prescription drug
coverage, Medicare Part D, and enroll in the Medicare
prescription drug low-income subsidy program and in
Medicare Savings Programs.

According to ACL, in 2016 over 14,000 SHIP counselors,
mostly volunteers, in over 1,300 community-based


organizations connected with individuals through more than
102,000 public and media events and 3.3 million one-on-
one client contacts.

Funding
The majority of SHIP funding is provided through
discretionary budget authority provided annually in the
Departments of Labor, Health and Human Services, and
Education, and Related Agencies (LHHS) Appropriations
act. However, discretionary funding is also supplemented
by mandatory funding for outreach and assistance to low-
income Medicare beneficiaries (see Table 1).

Table  I. State Health Insurance Assistance Program
(SHIP)  Funding, by Type (FY2009  to FY2019)
                    Discretionary   Mandatory
          Year         Funding       Funding
          FY2009     $47,400,000    $7,500,000
          FY20I 0    $46,960,000    $15,000,000
          FY20 II    $52,000,000             a
          FY2012     $52,115,000             a
          FY2013     $46,040,000    $7,1 15,000b
          FY2014     $52,115,000    $7,500,000
          FY201 5    $52,115,000    $7,500,000
          FY2016     $52,115,000    $13,000,000
          FY2017     $47,115,000   $12,103,000c
          FY2018     $49,115,000    $13,000,000
          FY2019     $49,115,000    $13,000,000
Source: HHS, ACL and CMS budget justifications (FY2009 through
FY2017); H.Rept. 115-952, p. 588 (FY2018-FY2019); P.L. 115-245,
P.L. 110-275, as amended (see 42 U.S.C. 1395b-3 note); and personal
communication with ACL.

Notes: Amounts are not adjusted for inflation.
a.  The Patient Protection and Affordable Care Act (P.L. II 1-148,
    as amended) appropriated $15 million for FY2010-FY2012.
b.  $7.5 million appropriated; amount reflects 5.10% reduction due
    to mandatory spending sequester.
c.  $13 million appropriated; amount reflects 6.9% reduction due to
    mandatory spending sequester.

Discretionary  Funding
OBRA   '90 (P.L. 101-508) authorized the appropriation of
$10 million in equal parts from the Medicare trust funds
(i.e., the Federal Hospital Insurance Trust Fund and the
Federal Supplementary Medical Insurance Trust Fund) for
each of FY1991 to FY1993. Congress and the President
subsequently extended SHIP authorizations of
appropriations to FY1996 under P.L. 103-432. While the
authorization of appropriations expired in FY1996,


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