Get Children's Health Insurance Back on Track
With state revenues in good shape, broad public support for CHIP and strong legislative leadership on the issue, many advocates expected that CHIP restoration would be a manageable legislative goal for 2007. House members filed dozens of CHIP restoration bills, with HB 109 by Representative Sylvester Turner emerging as a “bi-partisan compromise” bill that would restore many–but not all—of the elements of CHIP eligibility that are priorities for Texas Impact and other children’s health advocates.
House Bill 109 passed the House on April 10 and was referred to the Senate Finance Committee on April 11. However, the bill has yet to be scheduled for a hearing in Senate Finance.
Both the House and Senate versions of the state budget include increased funding for CHIP, but the House budget includes more funding. The conference committee on appropriations will start meeting soon.
Obstacles To Restoration
Currently, two major obstacles appear to stand in the way of CHIP restoration. The first is ideological: some lawmakers persist in seeing CHIP as an easily exploited “give-away.” In fact, CHIP is based on private insurance models. Parents share responsibility for their children’s coverage, and eligibility is strictly enforced.
For legislators who are suspicious of CHIP, the “line in the sand” is 12-month continuous eligibility—legislators say parents should have to prove their children’s financial eligibility for the program every six months rather than once a year as is the norm in private insurance programs.
CHIP used to follow the private sector model but changed to 6-month re-enrollment in 2003. The reasons were fiscal, not philosophical: More frequent eligiblity determination adds up to lower costs for the state because fewer kids enroll in CHIP, either because parents can’t meet the frequent deadlines to submit updated information or because of errors in the eligibility determination system.
The second obstacle to CHIP restoration is the threat of a large lawsuit settlement in the Frew lawsuit, in which parents of Children’s Medicaid recipients sued the state for failing to provide covered services under the Medicaid program. Some lawmakers believe the state should take funding from CHIP to pay for the lawsuit settlement.
What Can You Do?
The simple message for CHIP supporters is: keep the pressure on. Have you written a letter to the editor supporting CHIP? If so, then write another. Have you called your legislator to advocate for annual enrollment? If so, call them again. Have you asked your friends and neighbors to voice their support for CHIP? It’s time to make sure they really did it. Have you returned all signed CHIP postcards to Texas Impact? Lawmakers need to see them now!
After four years of calling for CHIP restoration, many advocates are getting tired. With every major newspaper in the state calling for restoration, tens of thousands of postcards, rallies in local communities and support from the business, medical and academic communities, it seems unbelievable that lawmakers would do anything other than restore CHIP and move quickly to insure Texas kids.
But as the saying goes, it ain’t over till it’s over, and the 80th legislative session isn’t over till May 28. Until then, anything can happen, and kids’ health is too important to leave to chance.
Read Bee's testimony to the House Human Services Committee
Watch the hearing on the Capitol website
Texas Impact announces the return of "CHIP Postcards" in preparation for the 2007 legislative session. Please help send a strong message to Texas leaders that children's health is a priority for our families and communities!
In 2005, Texas religious communities sent more than 20,000 postcards to Governor Perry and other lawmakers asking them to restore funding and benefits that were cut from the Children's Health Insurance Program. Lawmakers responded with partial fixes...but they also made other changes that have resulted in huge enrollment cuts in CHIP and Children's Medicaid.
Texas leads the nation in uninsured kids. More than one in every five Texas kids lacks health insurance, and we could cut that number in half if all eligible kids were enrolled in CHIP and Medicaid.
Other states are moving to guarantee ALL their kids decent, affordable health insurance. Texas should work toward universal child health, too.
WHAT CHANGES NEED TO BE MADE TO RESTORE CHIP?
- Eliminate the asset test
- Eliminate the 90 day waiting period for uninsured children
- Deduct childcare and child support expenses when calculating income
- Return to 12-month continuous eligibility
Legislative principles and background information from the Texas CHIP Coalition
Click here for more ways you can help get Texas kids insured
Texas’ investment in CHIP and Medicaid positively impact our state’s economy. Cutting the CHIP and Medicaid programs has shifted the cost of the uninsured to businesses, local governments, and communities. In Texas, employer health insurance premiums are $1,551 higher due to the unpaid cost of health care for the uninsured.
For every dollar ($1) the state cuts in CHIP and Medicaid, Texas sees:
• $2.32 in lost federal health care funding
• $1.59 in increased insurance premiums
• $1.81 in retail sales losses
Bringing federal dollars into our state’s economy has a tremendous impact on insuring more children and stimulating economic growth. It makes good economic sense to invest in our children and our communities for a healthier Texas.
Who are the uninsured?
• 80% of the uninsured in Texas have at least one family member who works full time.
• 73% of all Texas businesses employ less than 50 people. 37% of these small businesses offer health insurance and only 35% of their employees enroll.
• For a family of four earning $20,000 (the federal poverty line) the average annual cost of health insurance is $9,100 - almost half their income.
