Census Data Highlights Need

for Health Insurance for Lower Income Children 

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New data released today by the U.S. Census Bureau reveals that 105,000 Washington children lacked health insurance in 2006, while more reliable data from the 2006 Washington State Population Survey report 66,141 children without health insurance. Regardless of methodology, tens of thousands of uninsured children risk their health and incur community costs through treatment of routine medical issues in their aggravated and emergency state. This results in poor long-term health outcomes for uninsured kids as well as higher health care costs and insurance premiums for those with insurance.

Data on health insurance coverage is particularly resonant this year as the federal government debates the proposed reauthorization and revision to the State Children’s Health Insurance Plan (SCHIP), a federal program that has extended health insurance to thousands of children since its 2000 implementation in Washington State. 

The SCHIP reauthorization is an opportunity for the federal government to improve the ability of SCHIP to reach more children in need. Both houses of Congress have offered broad bipartisan support for program enhancements that would support Washington State’s efforts to expand health insurance coverage.

 

However, President Bush has threatened to veto Congress’ proposals and has directed the Centers for Medicare and Medicaid Services to limit states' flexibility to set SCHIP eligibility levels which would significantly reduce the number of children with health insurance in Washington State. 

 

Key issues at stake for Washington State include:

• Funding formulas that punish Washington’s pioneering efforts in health care coverage.  Since SCHIP’s Washington State debut in 2000, states have been unable to use the new federal funds to cover children that would have already been enrolled in the states’ Medicaid program. Thus, Washington State’s leadership as one of eleven states to initially expand Medicaid eligibility beyond the federal mandate is penalized under the current federal reimbursement. Congressional legislation would remove this penalty, while the President’s proposal would uphold this unfair funding formula. This year, Washington State will return $33 million that could have insured more Washington kids.

• Unnecessary hurdles for enrollment.  Five thousand Washington children with U.S. citizenship had their health insurance coverage disrupted last year due to federal policy requiring stringent proof of citizenship and identity, according to the Washington State Department of Social and Health Services. Congress would make citizenship proofs more reasonable, while the President’s proposal would continue placing hurdles before eligible children and could cause additional service interruptions for thousands of needy children.  
• Coverage for legal immigrant children.  The President’s proposal will retain a five year ban on legally present immigrant children awaiting citizenship, denying health care coverage for eligible children in the interim.
• Waiting periods before children can enroll.  In Washington State, children must have been uninsured for four months before they can enroll in the children’s health insurance program. New federal guidelines would require children to be uninsured for a full year, a poor policy choice which could dramatically increase the number of uninsured kids.

Washington State continues to be a leader in children’s health care coverage. Earlier this year, Washington State lawmakers pledged to “Cover All Kids” by enacting legislation that will provide affordable health insurance options for all Washington children by 2010. Washington State now offers affordable health coverage for children living in households at or below 250 percent of the federal poverty level and will extend sliding-scale coverage to children up to 300 percent of the federal poverty level, while allowing families with higher incomes to purchase comprehensive health insurance through the state at full cost. Over the next two years, funding is provided to insure a projected 38,000 of the state’s 66,141 uninsured children.

 

Today’s Census data reminds us of the continued need for public focus on uninsured Washington residents. The success or failure of the state’s commitment to this public priority depends heavily on the outcome of federal SCHIP reauthorization. Federal policies established this year will either provide significant new federal dollars to or continue and expand regulations to thwart our progress.