[Press Release] Children's Defense Fund Announces Plan to Cover Over 9 Million Uninsured Children

from The Children's Defense Fund

CDF Offers Legislative Approach That Streamlines Federal Programs to Expand Coverage and Access to Health Care for All Children

WASHINGTON, DC The Children’s Defense Fund (CDF) today announced a proposal to provide all children in the United States with access to health care, including the more than 9 million children who are currently uninsured.

“This new Congress has a wonderful opportunity to do something real for our children,” said CDF Founder and President Marian Wright Edelman. “It is a shame that more than 9 million children in America―the richest nation in the world―still do not have health care coverage. As Congress considers reauthorizing children’s health programs this year, it has a special opportunity to take the next logical, moral, and achievable steps to ensure health and mental health coverage for all children in America as a significant down payment on health coverage for all.”

CDF offers its proposal as Congress prepares to reauthorize the State Children’s Health Insurance Program (SCHIP), a program that CDF championed in 1996. Medicaid and SCHIP have made tremendous progress in improving children’s health insurance in the past decade, currently providing coverage to over 30 million children. Yet more than 9 million children in America are still uninsured, almost 90 percent of them living in households with at least one working parent. Millions more are underinsured. Chronic budget shortfalls, often confusing enrollment processes, and dramatic variation in eligibility and coverage from state to state prevent millions of currently eligible children from leading healthy lives and realizing their full potential in school and life.

According to a Hart Research poll conducted for CDF, more than three-fourths of Americans think it is “important” or “extremely important” for elected leaders in Washington to focus on providing health care for all children in America. Almost 7 in 10 Americans think the federal government is doing “too little” to help children who do not have health insurance coverage. CDF’s proposal would simplify and consolidate children’s health coverage under Medicaid and SCHIP into a single program that guarantees children in all 50 states and the District of Columbia all medically necessary services.

“Health care coverage for all children is indeed the smart thing to do and Washington has fallen behind what the country wants,” continued Edelman. “Children are our future and by far the most cost-effective investment. How we take care of our children speaks to our very values as a society. We should do it, we can do it, and with the help of Congress, all children will have health care coverage by next year.”

WHY ACT NOW? Medicaid and the State Children’s Health Insurance Program (SCHIP) have made tremendous progress in improving children’s health insurance, currently providing coverage to over 30 million children. Yet more than 9 million children in America, almost 90% living in working households and a majority in two-parent families, are still uninsured. Millions more are underinsured. Chronic budget shortfalls, often confusing enrollment processes, and dramatic variation in eligibility and coverage from state to state prevent millions of currently eligible children from living healthy and realizing their full potential in school and life. As Congress prepares to consider reauthorization of SCHIP in 2007, the Children’s Defense Fund (CDF) believes there is a special opportunity for our nation and leaders in all parties to take the next logical, incremental, smart and just steps to ensure health and mental health coverage for all children in America as a significant down payment on health coverage for all.

WHAT WOULD THE CHILDREN’S DEFENSE FUND PROPOSAL DO? It would ensure affordable access to comprehensive health and mental health care for all children in America. It would simplify and consolidate children’s health coverage under Medicaid and SCHIP into a single program that guarantees children in all 50 states and the District of Columbia all medically necessary services. A child’s chance to survive and thrive should not depend on the lottery of geography.

WHO WOULD BE ELIGIBLE?

* All children with family incomes at or below 300% of the federal poverty level ($60,000 for a family of four in 2006) would be eligible. Children with family incomes over 300% could buy into the program.
* Pregnant women at or below 300% of the federal poverty level would be eligible for prenatal, delivery and post-partum care for at least 60 days after birth to ensure babies are born healthy and new mothers get the health and mental care they need to care for their child.
* Youth who have transitioned from the foster care system through age 20, and other special needs children covered by current law, would be eligible.

WHAT BENEFITS WOULD BE INCLUDED?

* All children enrolled in this new program would receive comprehensive coverage of all medically necessary care equivalent to current Medicaid benefits.

WHAT WOULD BE THE COST FOR FAMILIES?

* Children in families with incomes at or below 200% of the federal poverty level ($40,000 for a family of four in 2006) would pay nothing for coverage or services.
* Children in families with incomes between 201% and 300% of the federal poverty level would have no premiums for coverage but could be charged some affordable amount for services.
* Children in families with incomes over 300% of the federal poverty level who enter the program would pay both premiums for coverage and some affordable amount for services.

HOW WOULD THE CDF PROPOSAL STREAMLINE ENROLLMENT?

* All children currently enrolled in Medicaid or SCHIP would be enrolled automatically.
* All children currently receiving services under certain federal assistance programs like school lunch and food stamps would be enrolled automatically with opportunity for families to “opt out.”
* All parents would also have the option to enroll their child at birth, school registration, or issuance of a Social Security card.
* Applications would be short and simple to complete; children would be presumed immediately eligible for services; and obstacles to enroll and stay enrolled would be eliminated.

OTHER KEY PROVISIONS

* There would be no additional cost to states for child coverage expansion or enhanced benefits. Funds for coverage expansion and improvements would come from the federal government.
* All eligible children would be guaranteed coverage under this program regardless of their state of residence.
* To improve children’s access to health and mental health services, payment to health care providers would be increased to the same level as Medicare.