Public Payers News

Arizona Declines Funding Children’s Health Insurance Program

The Centers for Medicare & Medicaid Services (CMS) announced that $32 million in funds will be set aside for the health coverage of children who are eligible for the Children’s Health Insurance Program.

By Vera Gruessner

- Nearly 20 years ago, the Children’s Health Insurance Program (CHIP) was established in order to ensure the offspring of low-income families who didn’t qualify for the Medicaid insurance plan did have the right to healthcare coverage. When this particular program was first created, the number of uninsured children across the country dropped from 14 percent to 7 percent.

CHIP and Medicaid Program

Along with the drop in uninsured, Congress reauthorized federal funds for the Children’s Health Insurance Program in 2009, which kept the coverage going longer. Due to the Medicaid coverage plans and the Children’s Health Insurance Program, more than one out of three youths are ensured medical insurance throughout the country.

Toward the end of 2015, the Centers for Medicare & Medicaid Services (CMS) announced in a news release that $32 million in funds will be set aside for the health coverage of children who are eligible for the Children’s Health Insurance Program.

These funds will be used to inform parents and families of the Medicaid and CHIP coverage plans, assisting families in applying for these programs, and identifying those who are eligible.

“Health coverage gives children access to the care they need to stay healthy and gives families the security of knowing their kids and household budgets are protected.” Vikki Wachino, Deputy Administrator of CMS and Director of the Center for Medicaid and CHIP Services, stated in the release. “By connecting eligible children to Medicaid and CHIP, these grants will help to ensure that children can more fully participate in childhood activities and are more prepared to succeed in school.”

These type of outreach efforts have brought more families and children into enrolling in the CHIP program, CMS reports. As of 2014, the number of uninsured children nationwide hit a mere 6 percent, which is the lowest it has even been.

This $32 million in funds are part of the Connecting Kids to Coverage Outreach and Enrollment Grant under the CHIP program. The additional funds were also offered through the provisions of the Obama administration’s Affordable Care Act.

CMS also stated that this is the fourth time revenue was offered through this initiative and the $32 million will be provided over a two-year period. Both medical organizations, nonprofit associations, and school systems are encouraged to apply for this funding in order to promote outreach efforts and awareness of the CHIP program.

While the federal government has positioned and expanded the funding for the Children’s Health Insurance Program, the state of Arizona does not have a thriving CHIP program known as KidsCare, according to the National Council of La Raza. This type of coverage would offer healthcare access to the offspring of low-income families who do not qualify for the Medicaid program and cannot afford health insurance through the state exchanges.

It would benefit as many as 30,000 children in Arizona if the policymakers restored KidsCare, which would actually not make a significant fiscal impact on the state budget, reports the National Council of La Raza.

“KidsCare has broad, bipartisan support in the legislature, where the Arizona House passed HB 2309 last week 47-12. Lifting the temporary freeze on KidsCare is a top priority across the state for pediatricians and nurses, employers and parents, AARP and faith groups, educators and rural communities. The majority of Arizona lawmakers stand on the side of Arizona children and families,” Dana Wolfe Naimark, Children’s Action Alliance President and CEO, said in a public statement.

“Arizona has the opportunity right now to take advantage of 100% federal funding of KidsCare, money that we have already paid in taxes.   No single lawmaker should block us from stepping up to reach Governor Ducey’s goals for opportunity for all kids so they have a chance to grow up in our state healthy and ready to learn.”

Additionally, if Arizona expands its Medicaid program, more low-income adults and families could gain medical coverage. The Associated Press reported that the Arizona legislature and state Senate is having a fair amount of criticism for its lack of approving funding for the KidsCare program or the CHIP health plan. The state of Arizona is the only one around the country that has implemented this lack of ensuring medical care access for children of low-income families.

Senate President Andy Biggs is the one who has blocked passage of additional funding for the CHIP Program. Biggs is concerned that the federal government will go back on its word and will not offer the necessary revenue to keep the program going. However, the proposal does state that Arizona can drop the continuation of the health insurance coverage if funding from the federal government ends.

“What we're talking about is a population that Obamacare is already supposed to cover,” Biggs told the news source. “And when people say it's free, it really isn't free, is it, because it's a taxpayer-funded program. So when we start talking about taxpayer-funded program, the question is it state taxes or is it federal taxes, but they're all coming from our taxpayers any way you look at it.”

When the state was having financial woes in 2010, it eliminated much of the funding for its CHIP program to save its budget. Today, the program is offering insurance to less than 1,000 children whereas it was once ensuring healthcare access for more than 63,000 children.

“Those children, this is what we're here for, is to help the working poor," Representative Regina Cobb stated at a rally. “These are families, of a mom and a dad where the dad’s the only worker and doesn't make but $9 or $10 an hour and can’t afford health insurance. Or this is a mom, a single mom, with a child or two, who is making a decision on whether or not to have heat, whether or not to pay rent, or whether to have health insurance.”

It would benefit the children of low-income families if Arizona passes this proposal for additional CHIP funding, as they may need greater healthcare access in the future.