States look to expand Health Coverage for Children

Despite a warning from the Presidents top health chief, more states are looking for ways to expand health care coverage to more children.

More states are trying to expand health coverage to children under SCHIP, State Children's Health Insurance Program, so that some middle class families can obtain coverage for their children.

The SCHIP program was started over a decade ago so states could offer health insurance to families whose income was double the federal poverty program. This meant a family of four with a household income of $41,300 would qualify for this program. Some states decided to use the Medicaid based income formula which allowed these states to cover even more children.

Ten year later, 18 states offer SCHIP to families who have a household income that is 200 percent of the federal poverty level, and this is done with the federal governments blessing. Five other states plus the District of Columbia are set to join this list according to a recent survey conducted by Georgetown University's Center for Children and Families.

Lawmakers in New York State have raised the income level of their SCHIP program to $82,600 for a family of four. These families receive government help when trying to purchase health insurance. The poorer these families are, the greater state aid they receive.

However, Mike Leavitt, Health and Human Services Secretary, is worried other states will follow New York's example of raising the income level for these SCHIP programs. Mr. Leavitt states 71 percent of all children would be on "public assistance" if other states do decide to follow New York's example.

Mike Leavitt went on to say the spirit of SCHIP was meant to expand health coverage for children, but that is not the case. Mr. Leavitt points out that for every ten people that decide to join a health insurance plan funded by the public, 6 of these people are people who have left a private insurance plan.

Jocelyn Guyer, deputy executive director of the university center, notes that recent studies have shown that states feel that having kids on health plans funded by the public are better than having these kids stuck with no health plan at all.

Ms. Guyer went on to say that State leaders are moving away from President Bush because they see that middle income families are finding the cost of health insurance is becoming unaffordable and that some type of subsidy for health insurance should be allowed.

1997 is when Congress approved a $40 billion bill allowing for a children's health program that would last ten years, and over the last ten year this children's health program has grown to include roughly 6 million people of which 640,000 are adults.

The expansion of this program is a top priority for the Democratic controlled Congress, and it is likely Congress will renew this plan. The Democrats would like to increase spending on this plan to $75 billion over the next five years, but President Bush would like to spend less than half of what the Democrats are proposing.

States are supposed to match dollar for dollar any federal money received under this program, but on average states will spend $30 for every $70 received from the federal government for funding SCHIP plans.

The White House is seeking a plan that would cover low-income families only, but Mike Leavitt was quick to point out that all states should consider plans that would allow other families to have access to basic health insurance coverage.

Jocelyn Guyer was quick to note that some states may have to scrap their SCHIP programs if Congress does not act to this summer to provide the necessary government funding for these programs. Ms.Guyer said these state programs are not possible without assistance from the federal government in funding these programs.

The Senate Fiance Committee is considering taking up the issue of a children's health insurance bill sometime in May.

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