More CHIP Bucks Renew Review

Texas officials have launched a new agency review for the Children’s Health Insurance Program (CHIP). The decision follows an aggressive increase in advertising funds forthe state program, now estimated at $10 million over two years.

Designed to provide children from low-income families with health insurance, CHIP was implemented in 2000. The initial two-year, $2 million advertising contract was awarded in 1999 to Sherry Matthews Advertising & Public Relations of Austin, Texas, following a review.

Although the agency has a one-year renewal option, CHIP officials “felt like they had go out to bid under state rules [because of] the previous cap in the [request for proposal] on expenditures,” said Chris Sherman, senior account manager at Sherry Matthews.

As an example of the spending increase, Sherman noted that CHIP began a statewide advertising blitz this year with a$3 million media buy for January to August.