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primary referral sources or funding sources, but do not otherwise meet the definition of participating agency in

§303.403.

CHIP is authorized under Title XXI of the Social Security Act and each State determines the level of income eligibility and available health benefits for children. In many States, CHIP benefits are combined with benefits under Medicaid (Title XIX of the Social Security Act). Requiring the lead agency to coordinate its child find efforts with the CHIP program ensures nonduplication of Federal and State funds and efforts to provide needed health services to eligible children.

Each State has a State EHDI program, which is responsible for creating a system of newborn hearing screening, follow-up, audiological diagnosis (for those who do not pass screening), and intervention (for those who are identified with hearing loss). Recent data indicate that 55 percent of State EHDI programs never or rarely notify the Part C statewide system about infants who have failed their final hearing screening. (National Center for Hearing Assessment and Management, The Impact of Privacy Regulations, May 2008, available at www.infanthearing.org)

By adding the State EHDI program in §303.302(c)(1)(ii), we

acknowledge that coordination between the State EHDI