The Associated Press State & Local Wire


April 8, 2003

By SUZANNE GAMBOA, Associated Press Writer

Insuring nearly all children is possible if states continue the progress they've made covering low-income kids through existing programs and make some changes in how they are financed, a private foundation reported Tuesday.

Many states have managed to reduce the numbers of uninsured children, said a report by the David and Lucile Packard Foundation. But those successes are threatened as states face budget crises and the federal government looks to control spending. David Packard was co-founder of Hewlett-Packard Co.

About 1.6 million more children have gained coverage since 1998, said Eugene Lewitt, the foundation's senior program manager. By 2001, Medicaid provided insurance to 21 million low income children and the State Children's Health Insurance Program, or SCHIP, covered 3.5 million, the foundation said.

Courtney Bennett, foundation policy analyst, said only four states - Georgia, Indiana, New Hampshire and New Jersey - had more than a 2 percent increase in uninsured children, during 1999 to 2001. In Texas , 21.5 percent of children under 19 were uninsured in 2001, compared to 23 percent in 1999.

The information is based on the most recent data available in a survey by the Center on Budget and Policy Priorities, a group that focuses on how policies affect poor people.

"If state and federal governments don't act now to save these programs" the increases in uninsured children will extend beyond the four states, Bennett said.

An estimated 8.5 million children nationally lack health insurance. About 76 percent of those children are eligible to participate in SCHIP or Medicaid, she said.

In Texas , House budget writers have scaled back Medicaid and the children's health insurance program to help deal with a $9.9 billion revenue shortfall. The action is expected to leave hundreds of thousands of children without coverage.

"From the states' perspective, we are continuing to face the worst crisis since the second World War," said Ray Scheppach, National Governor's Association executive director.

At the federal level, the House made billions of dollars in cuts to Medicaid and about $2 billion in the SCHIP program when it passed its budget blueprint. The Senate passed a budget outline with less drastic cuts, said Leighton Ku, health policy senior fellow at the Center on Budget and Policy Priorities. The differences are being worked out in committee with much of the outcome dependent on the size of the tax cut Congress hammers out.

In addition to budget troubles, the way Congress structured SCHIP financing has created problems for states.

Congress created a $40 billion block grant for SCHIP to be distributed over 10 years. But states don't get the same amount every year, instead more money is released in the first four and last three years. That means SCHIP money reduces by $1 billion in the years 2002 to 2004, the Packard foundation report said.

"This decrease unfortunately coincides with an increased need for SCHIP funds because of increasing enrollment," the foundation said.

The foundation said between $4.6 billion and $6.1 billion in unused federal matching money is available to cover uninsured Medicaid- and SCHIP-eligible children, but most states are unable to come up with state money - an estimated $2.7 billion to $3.7 billion - to get the federal money.

Unused money expires and is returned to the Treasury. The foundation recommended not allowing the money to expire. The foundation suggested states be given more time to get the unused money.

The Packard Foundation report recommends changing Medicaid and SCHIP financing so that children can be covered in down times. It also recommended raising the federal matching rate for Medicaid to the SCHIP level to encourage states to enroll more children in Medicaid and to simplify enrollment.

On the Net: The Future of Children report: http://www.futureofchildren.org/

National Governors Association: http://www.nga.org

Reuters

Report: States Could Cover Most Uninsured Kids
Tue April 08, 2003 05:47 PM ET

By Todd Zwillich

WASHINGTON (Reuters Health) - More aggressive use of existing of low-income health programs could deliver medical coverage to 97 percent of uninsured children in the U.S. , according to a report issued Tuesday.

Researchers estimated that the government could provide health coverage to most of the 8.5 million U.S. children who currently lack coverage by strongly promoting the state children's health insurance programs (SCHIP) to parents who don't know that their children are eligible.

Many of those parents are recent immigrants who may avoid the coverage because of language barriers or fears of having to reimburse the government, the researchers said.

"Mostly confusion or misinformation" is responsible for the gap in coverage of eligible children under SCHIP and Medicaid, the other major public health insurance program for low-income children and adults, said Courtney Bennett, a policy analyst at the David and Lucile Packard Foundation, which issued the report.

Bennett said that states should do more to inform low-income parents about the availability of SCHIP and should also try to reduce barriers to enrollment in the program.

The foundation also wants states to consider covering children who come from working families earning more than 300 percent the federal poverty level, which includes approximately 5 percent of uninsured children.

But the call comes at a time of extreme budget austerity in nearly all 50 states, where financial deficits are expected to run as high as $80 billion next year. The deficits mean that few states can afford to expand enrollment in their SCHIP plans, which require states to share the cost of the program with the federal government.

"States will be hard-pressed to come up with the matching money," said Eugene Lewitt, a senior program director at the foundation.

Some groups have called on Congress to release billions in unspent SCHIP money that was returned to the federal treasury last year and to temporarily increase the federal share of Medicaid payments to the states.

Those efforts, while favored by some in Congress, have met with resistance. A Senate-passed bill to release $2.7 billion in SCHIP money to states last year went unanswered in the House. This year, the House passed a budget resolution calling for $93 billion in Medicaid cuts over the next decade.

The resolution has yet to be reconciled with a Senate budget, which does not call for the cuts.

 

Gannett News Service

Tight funds hurt health coverage
CHIP helps insure children, but Missouri plans to make cuts from the health program.

By Pamela Brogan
 
Washington -- About 8.5 million of the nation's poorest children are not covered by health insurance and another million could lose coverage because states are struggling with tight budgets and deficits, a report issued Tuesday concludes.

Despite state and federal efforts to provide health coverage to poor children under the Children's Health Insurance Program (CHIP), the percentage of uninsured children rose in 10 states, including Missouri , from 1999 to 2001, said a report by the David and Lucile Packard Foundation, a nonprofit group.

In Missouri , the percentage of uninsured children rose from 3.7 percent in 1999 to 5.3 percent in 2001. Missouri 's program provides coverage for about 84,000 children.

Nationwide, CHIP provides health care coverage to 3.5 million children whose families lack private insurance but earn too much to qualify for Medicaid.

"Public health insurance programs are currently threatened with less funding at precisely the time when the need is increasing," said Lois Salisbury, director of the Children, Families and Communities program at the foundation.

Georgia showed the largest increase in the percentage of uninsured children. Louisiana led states where the percentage of uninsured children dropped.

Nationally, the number of uninsured children decreased slightly from 9.9 million in 1999 to 9.2 million in 2001.

But with states projecting combined budget shortfalls of $80 billion next year, deep cuts are expected in health programs for children.

At least five states -- Montana , Idaho , Illinois , New Hampshire and Massachusetts -- have announced cuts in CHIP, according to a survey of 44 states by the National Conference of State Legislatures.

Missouri is one of 11 states proposing cutbacks. The others are Minnesota , Nebraska , Arizona , Texas , Louisiana , Alabama , Florida , South Carolina , Connecticut and Alaska .

"Some states, like Missouri and Texas , are really going to hurt kids," said Leighton Ku, a policy analyst for the Washington-based Center on Budget and Policy Priorities.

Texas wants to cut 400,000 children from it. And earlier in the legislative session, Missouri 's House Appropriations Committee proposed eliminating the program.

Gov. Bob Holden has threatened to veto the Missouri bill if the cuts are approved by the state legislature.

Harold Bengsch, director of the Springfield-Greene County Health Department, said CHIP covers about 7,000 children in Springfield and Greene County . He said cutting the insurance program would force poor children to seek health care at emergency rooms, which is more expensive for taxpayers. "It's preventive care that saves money in the long term," he said.

Meanwhile, a U.S. House budget plan proposes reducing the children's health program by $2 billion over 10 years beginning in 2004.

"It doesn't look good," Rep. Hilda Solis, D-Calif., who chairs the Congressional Hispanic Caucus' Task Force on Health, said at a news conference in Washington . "It looks like we are trying to reduce the safety net for poor children and their families."


National Journal's CongressDaily

April 08, 2003

Report Gives SCHIP Good Marks For Covering Uninsured Children

The State Children's Health Insurance Program got relatively good marks for covering uninsured children in a report released today by the David and Lucile Packard Foundation. But states' fiscal crises may result in less funding to cover rising numbers of children in the program. "SCHIP got off to a rough, bumpy start, but it has been a major success," said Lois Salisbury, the director of the Packard Foundation's Children, Families and Communities Program. "States are now pressured to cut programs, and progress is threatened." Deficit-plagued states will find it difficult to come up with as much as $3.7 billion in matching money in order to access the $4.6 billion to $6.1 billion in unused federal funds, the study said. The foundation released new state-by-state data analysis showing that only four states have seen the number of uninsured children rise by more than 2 percent. One "long-term" solution the study suggests is funding SCHIP and Medicaid with mechanisms similar to those used for unemployment insurance, in which funding increases in times of economic downturn.

 

KAISER DAILY HEALTH POLICY REPORT

A service of kaisernetwork.org

http://www.kaisernetwork.org/dailyreports/healthpolicy

________________________________________

 

Tuesday, April 8, 2003

NEW RELEASES

10. The Latest Reports in Health Policy

Access this story and related links online:

http://www.kaisernetwork.org/daily_reports/rep_index.cfm?DR_ID=17062

"Health Insurance for Children," David and Lucile Packard Foundation:  The report, part of the foundation's The Future of Children journal, states that with improved financing structures and other changes, Medicaid and the CHIP program could cover 97% of all low-income children within three to five years.  The foundation also released a survey conducted by ICR/International Communications Research that shows 64% of 1,007 respondents believe that federal and state governments should take steps to ensure public health programs do not face budget cuts and that 79% of respondents said the federal government should give states more financial help to insure all children even if it means increases in taxes (David and Lucile Packard Foundation release, 4/8).  A Web cast of the briefing to release the new data is available online at kaisernetwork.org.

AHA NEWS NOW

Tuesday, April 8, 2003

Today's headlines:

1. Rural relief bill introduced in House and Senate

2. Report, poll urge support for children's health insurance programs

3. HANYS: Proposed hospital-funding cuts would cost economy twice as much

4. GAO recommends developing bioterrorism preparedness benchmarks

5. NEJM article examines SARS outbreak in Hong Kong hospital

 

2) Report, poll urge support for children's health insurance programs

An estimated $4.6 billion to $6.1 billion in unused federal matching funds is available to cover uninsured children through Medicaid and the State Children's Health Insurance, but most states will be hard-pressed to come up with the matching funds needed to access the federal money due to intense pressure to cut their budgets, according to new data and a report released today by The David and Lucile Packard Foundation. The report recommends state and federal governments increase funds for Medicaid and SCHIP to meet the increased demand for public health insurance during the economic downturn. It also recommends the federal government raise the federal Medicaid matching rate for children to the same level as the SCHIP matching rate to encourage states to enroll more children in Medicaid and simplify administration of both programs. The report includes data indicating the Medicaid and SCHIP programs continue to reduce the number of uninsured children, and concludes that enrolling all eligible children in existing public health insurance programs could provide coverage for virtually all children. The foundation also released the results of a new poll showing strong public support for these programs. More than eight out of 10 respondents indicated the federal government should provide states with extra help to provide all children with health insurance, and more than six out of 10 strongly agreed the federal government and states should take steps to protect the Medicaid and SCHIP programs from budget cuts. For more on the report and poll, go to http://www.futureofchildren.org/.