CHIP Enrollment Drops for August

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AUSTIN -- Enrollment in the state's low-cost insurance program for children fell by more than 2,100 in August.

But state officials Wednesday report the number of children insured by Medicaid grew.

There are just over 301,000 children enrolled this month in the Children's Health Insurance Program. CHIP covers kids whose parents make too much to qualify for Medicaid and too little to buy private insurance.

CHIP enrollment has fluctuated amid problems with a contractor hired to process applications. But the children's Medicaid rolls grew by over 10,000, to more than 1.85 million.

CHIP enrollment is expected to increase as the state implements
changes the Legislature approved this spring. But a dispute lingers between President Bush and Congress over how much more to spend on the program that will expire September 30.