Monday, November 17, 2008 State
Watch
California Considers Freeze on SCHIP Enrollment To
Prevent Current Beneficiaries From Losing Coverage
California officials are considering
freezing enrollment in the state's Healthy
Families program, as an "influx of new clients overwhelms" it, the Los Angeles Times reports (Rau, Los
Angeles Times, 11/14). The program is facing a $17.2 million
deficit that could lead to children losing their coverage if not
addressed. Healthy Families is the state's version of SCHIP and provides
medical, dental and vision coverage to more than 900,000 children in the
state. New enrollment in the program has averaged more than 27,000 per
month during the past year.
Lesley Cummings -- executive director
for the state's Managed
Risk Medical Insurance Board, which administers Healthy Families --
has told the board that the only way to manage costs for the program and
avoid cutting benefits to children is to limit or freeze enrollment. She
also said that such a freeze was set for Dec. 18 by the state budget.
According to Cummings, the only step that could avoid a freeze in
enrollment is "more dollars to make up the shortfall" (Rojas, Sacramento Bee, 11/14). Cummings said, "If
the board does not cap enrollment, it would have to take other, more
drastic actions later," adding, "Capping enrollment, rather than
eliminating coverage that a child currently has, seems the preferable
path" (Los Angeles Times, 11/14). Advocates for children say
as many as 162,000 eligible children could be on the wait list by June
2009 if a freeze is enacted.
State Sen. Darrell Steinberg (D), who
will take over as the Senate president pro tempore on Dec. 1, said
children's health care should remain a top priority despite the state
budget crisis. California faces an $11.2 billion deficit for the current
fiscal year. He said, "I would urge [MRMIB] to hold up on such a vote."
Steinberg said he has spoken with officials for other state-funded
programs and foundations "about stepping up." He also said President-elect
Barack Obama has proposed increasing SCHIP funding. Cummings said that the
new administration's support for SCHIP is encouraging but added that the
state would have to put up matching funds. California pays $1 for every $2
spent by the federal government on Healthy Families (Sacramento
Bee, 11/14).
Cummings' recommendation will be discussed at
an MRMIB meeting Wednesday. The board is expected to vote on Dec. 17 on
whether to freeze enrollment the next day (AP/San Francisco Chronicle, 11/13).
Editorial
"Alternatives exist" to freezing Healthy Families
enrollment, a San Jose Mercury News editorial
states. According to the Mercury News, California Gov. Arnold
Schwarzenegger (R) "could justify more money for Healthy Families because
for every $1 the state invests, it gets $2 in federal funds." In addition,
an "increase in the tobacco tax, which [Schwarzenegger] supported in the
past, could support the program," the editorial states. The Mercury
News writes, "Schwarzenegger thinks comprehensive health care
reform will solve this problem, but getting this done anytime soon is a
delusion," adding, "It's a cop-out, just as thousands of more families are
losing employer-based insurance" (San Jose Mercury News,
11/16).