Journal of Official Statistics, Vol.18, No.3, 2002. pp. 409427

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Using Survey Data to Allocate Federal Funds for the State Children's Health Insurance Program (SCHIP)

We begin this article with a brief review of the basic elements of allocation formulas and issues that arise in using sample survey data to estimate their components. We then turn to the State Children's Health Insurance Program (SCHIP) to illustrate how some of these issues have developed and been addressed in the context of a relatively new U.S. federal government program. SCHIP is the largest new health care initiative since Medicaid, and its formula-based allocation of funds provides an excellent illustration of a range of issues. Following an overview of the SCHIP formula allocation process, we discuss several statistical issues that have emerged since the start of the program in 1997.

Allocation formulas; children's health insurance; data sources; estimation; household surveys.

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