Study: Fewer kids need insurance program

There are fewer low-income, uninsured children than previously believed, and that means tripling federal funding for a children's health insurance program is unnecessary, the Bush administration said Monday in touting a new study.

Democrats have made expansion of the State Children's Health Insurance Program a priority. The politically popular program is set to expire on Sept. 30. It serves children in families with incomes too high to qualify for Medicaid but not high enough typically to afford private insurance.

Democratic lawmakers want to triple its funding, an increase of $50 billion over five years. The administration has said that an increase of $5 billion is sufficient. Democratic lawmakers said the study, which was released shortly before the Senate Finance Committee was to take up legislation to renew the program, is flawed.

The Urban Institute estimated that about 4.9 million children under the age of 19 were uninsured for the entire year. That's a much lower estimate than the one compiled by the Census Bureau, which counts more than 8 million uninsured children.

"This study flies in the face of all accepted data on the number of uninsured American children who desperately need and could receive health coverage through a renewal of the (SCHIP) program," said Sen. Max Baucus, D-Mont., the chairman of the Finance Committee.

The report's authors said the primary difference between their estimate and the one that comes from the Census Bureau's Current Population Survey stems from the survey's underreporting of families that participate in government-sponsored health insurance - Medicaid or SCHIP.

The authors also attempted to calculate the number of children eligible to participate in Medicaid or SCHIP but not enrolled. They estimated that 1.1 million children uninsured for the entire year were eligible to participate in either of the two federal program.

That estimate also is lower than the Census Bureau numbers of uninsured children - about 5.5 million - who live in families below 200 percent of poverty. Generally, families with incomes below 200 percent of poverty are eligible for public coverage, but some states have more restrictive eligibility limits while others have more liberal eligibility limits.

The study's authors noted that their figures for uninsured children eligible for public coverage do not count 1.1 million uninsured children who are illegal or temporary immigrants as well as another 403,000 legal aliens who are ineligible due to a five-year ban on participation in public health programs. The Census Bureau does not make such distinctions when projecting the number of uninsured.

An administration fact sheet issued by the Health and Human Services Department said the program should be refocused to provide coverage to children in families at or below 200 percent of poverty - $41,300 for a family of four. Many states are expanding eligibility beyond that threshold.

"Unnecessary SCHIP expansion will force others from private insurance to public assistance," the administration's fact sheet said.

Democratic leaders of the committees with jurisdiction over the SCHIP program questioned the study's accuracy.

"Instead of wasting time skewing facts, I wish HHS would start working with Congress to protect the health of our kids," said Rep. John Dingell, D-Mich., chairman of the House Energy and Commerce Committee.

States use the grant money provided by SCHIP, along with their own dollars, to subsidize health coverage. On average, the federal government pays about 70 percent of the costs and states pay about 30 percent.

States have asked Congress to provide enough money to cover currently eligible participants as well as continue to give states flexibility to cover adults and children with higher incomes. In a recent letter to the committee, the National Governors Association said it was crucial that Congress give the states room to decide who the program should serve.

"I am committed to ensuring California leads the way in reducing the number of uninsured children," said Gov. Arnold Schwarzenegger, R-Calif., in a separate letter to Finance Committee leaders. "It is my goal to cover every uninsured child in California under 300 percent of the federal poverty limit using SCHIP funds."

source:seattlepi.nwsource.com