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The State Children's Health Insurance Program (SCHIP), which
has succeeded in reducing the number of uninsured children in
the United States, is in serious jeopardy of significant federal
budget cuts. States face a 26 percent reduction in federal funds
available for SCHIP for fiscal years 2002, 2003, and 2004 (the
Balanced Budget Act of 1997 created a dip in allocation of funds
for the middle years of the program) and nearly $3 billion in
federal SCHIP funds will revert to the treasury in fiscal years
2002 and 2003. As a result, a number of states will have insufficient
federal SCHIP funds available to sustain their current programs.
Because of reduced federal funding, state budget shortfalls,
and the economic downturn, the U.S. Office of Management and
Budget estimates that 900,000 children will lose their health
coverage between 2003 and 2006. In order to prevent such a devastating
cut in the number of children receiving health coverage through
SCHIP, Senators Rockefeller (D-WV), Chafee (R-RI), Kennedy (D-MA)
and Hatch (R-UT) introduced the Children's Health Improvement
and Protection Act of 2002 (S. 2860) this August. This legislation
would fix the federal funding dip and would preserve the availability
of expiring funds that are scheduled to revert to the federal
treasury.
Act Now
Contact your Senators and urge them to act now to prevent
children from losing essential health insurance coverage. Call
the Capitol switchboard at 202-224-3121 and ask to be connected
to your Senators. Urge your Senators to support the Children's
Health Improvement and Protection Act (S. 2860) and bring it
to the Senate floor for a vote now.
Sample phone script: "I am calling from (your city, your
state) to urge the Senator to support the Children's Health
Improvement and Protection Act (S. 2860). This legislation would
correct the federal funding dip in SCHIP and ensure that children
in need receive essential health insurance protections. Please
urge the Senator to support S. 2860 and bring it to the Senate
floor for a vote."
Background
Established in 1997 to reduce the number of uninsured children,
the State Children's Health Insurance Program (SCHIP) has made
great strides in supporting children's health. By December 2001,
approximately 3.5 million children were enrolled in SCHIP and,
in recent years, the percentage of children without health insurance
has declined. Despite these advances, the continued success
of the SCHIP program is now in danger.
The Problem
- A 26 percent reduction in federal funding over the next
three years places SCHIP children at risk. SCHIP funding drops
by more than $1 billion this year and in the next two years.
Known as the "SCHIP Dip," this reduction has no
underlying health policy justification; it was solely the
result of the overall balanced budget deal enacted in 1997.
- Up to 900,000 children are expected to lose their health
insurance coverage. The Office of Management and Budget projects
that there will be a decline in SCHIP enrollment of 900,000
children between 2003 and 2006. Because of the SCHIP dip and
rapidly rising SCHIP enrollment, an increasing number of states
are projected to have insufficient federal SCHIP funds to
sustain their current caseloads.
- Even as states face a funding shortfall, nearly $3 billion
in federal SCHIP funds is scheduled to expire and revert to
the Treasury this year and next year. Currently, unspent SCHIP
funds are reallocated according to a formula established in
2000. Because of the mismatch between the time when these
unspent funds are made available to states and when those
states need them, some states will not be able to use all
of the funds within the limited time frame now required by
federal law. As a result, a total of nearly $3 billion in
federal SCHIP funds will expire at the end of fiscal years
2002 and 2003 and no longer be available to states.
General Assembly Policy
From "On Advocacy On Behalf of the Uninsured"
The 214th General Assembly (2002) of the PC(USA):
- Directs the Presbyterian Washington Office to:
- Urge adequate funding for the Children's Health Insurance
Program (CHIP) so that health-care coverage will be available
for all children.
- Urge the expansion of CHIP legislation to include the
parents or caregivers of children covered under its provisions.
- Oppose federal tax credits as a method to address the
health needs of the uninsured.
- Urge the expansion of Medicaid to insure more low-income
and fixed-income persons, including the recently unemployed.
- Encourage members of the Congress to recognize the importance
of Universal Health Care - that is, equal, accessible,
affordable, and high-quality health care for all persons
residing in our nation.
(From Church & Society, July/August 2002, p. 44)
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