Unexpected turn of events for children’s health insurance

 

WASHINGTON (AP) -- The modest spending increase that Congress approved for a popular children’s health insurance program will maintain coverage for those already enrolled. But many lacking insurance will have to look elsewhere.

Few expected such a result when 2007 began. Democrats proposed a huge spending increase on the federal-state partnership known as the State Children’s Health Insurance Program. Many Republicans embraced the idea.

Some analysts say the number of children getting SCHIP coverage may still decline next year — a bitter prospect for Democrats who promised they would expand enrollment from 6 million children to 10 million.

 

Republican lawmakers say they want to work out a compromise. But they insisted that SCHIP retain a new Bush administration directive that makes it harder for states to cover middle-income children.

The directive said that before states cover higher-income children, they must meet the following threshold: At least 95 percent of children eligible for Medicaid and SCHIP with incomes less than twice the poverty level must be enrolled in those programs.

Many states say meeting that threshold is nearly impossible. But that’s not all the directive said.

 

Even if states meet that threshold, the middle-income children will have to go without private coverage for a full year before they can enroll in SCHIP, and their families will have to pay premiums or co-payments that are 5 percent of their income.

California is considering a proposal that would require all Californians to have health insurance coverage, but a central piece of that proposal also increases the threshold for SCHIP eligibility — from the $42,925 level for a family of three to the $51,510 level.

Overall, about 9.4 million children ages 18 and under are uninsured, according to the Census Bureau.