Newsroom

Wednesday, February 04, 2009
Expanding Children's Health Insurance

In an early sign of the change promised by a new administration, expansion of the children’s health insurance program (SCHIP) has moved quickly through Congress and become one of the hallmarks of President Barack Obama’s first 100 days.  

 

Better health coverage for children is an important goal of the Public Welfare Foundation’s Health Reform program and several of its grantees, including the North Carolina Justice Center’s Health Access Coalition; South Carolina Fair Share Education Fund and South Carolina Appleseed Legal Justice Center; Kentucky Voices for Health, including Kentucky Youth Advocates, a coalition called Covering Kentucky Kids and Families and Citizens of Louisville Organized and United Together (CLOUT); and Federation of Congregations United to Serve, based in Orlando, FL.

 

In addition, several national organizations have spoken about the need for expanded coverage for children with support from the Foundation, such as the PICO (Pacific Institute for Community Organizations) National Network, the Center on Budget and Policy Priorities, the National Women’s LawCenter, the National Health Law Program and Community Catalyst.  

 

The broad Congressional support for children’s health coverage was reflected in the recent 289 to 139 vote to expand SCHIP in the House of Representatives, with 40 Republicans casting “yea” votes. The Senate bill passed by a 66-32 margin, mostly along party lines.   While covering about 4 million additional uninsured children, the legislation signed by President Obama also eliminates a five-year waiting period currently imposed on legally documented immigrant children.       

 

Enacted in 1997, SCHIP provides federal matching funds to states for health insurance to children in families at or below 200 percent of the federal poverty level. The program generally covers families with incomes that are too high to qualify for Medicaid, but for whom private health insurance is either unavailable or too expensive. On average, the federal government pays about 70 percent of the costs of SCHIP, but every child is not covered because the amount of available federal funds is fixed by law each year.

 

The new legislation comes at a time of increasing need. While it would expand total coverage to about 10.6 million children, rising unemployment due to the severe economic downturn has taken a toll. The PICO National Network estimates that, in 2008, more than 1.2 million children lost employer-based health insurance through their parents.