CFK Reports From: Senate Subcommittee Hears Testimony About SCHIP Reauthorization
Event: Hearing
Organized By: Senate Finance Subcommittee on Healthcare
When: July 25, 2006

Report By: Roshin Mathew

The Senate Finance Subcommittee on Healthcare met to discuss the future reauthorization of the State Child Health Insurance program (SCHIP). The panels discussed outreach, financing, funding distribution and how states can use their allotments.

More children have insurance because of the program, but each witness testified that outreach efforts need to be increased. 6.2 million children currently have insurance through SCHIP, but there are 5.5 million children who qualify, but have not signed up with SCHIP. Outreach needs to increase through the reauthorization of SCHIP, according to Senator Edward Kennedy (D- Mass.), and he would suggest some of that outreach can happen through schools. Senator Jay Rockefeller (D-WV) stated, "Lots of children have insurance but a lot more need it. And that is our mission."

The hope is that outreach will lead to more enrollments, but before the program can handle more children, it will need more funding. If funds remain at current levels, then 36 states run the risk of losing SCHIP by 2021. According to Kennedy, an additional $12 million will be needed between 2008 and 2012 to keep the program afloat with existing funding levels. The funding problem is frustrating because there are some states that do not use all their allotted money while 40 states actually spend more than the federal government provides them. Jocelyn Guyer, senior programmer at the Center for Children and Families, Georgetown University Health Policy Institute, warns, "We are at significant risk of losing our recent gains and missing the chance to move forward if we do not confront SCHIP funding shortfalls."

SCHIP was created in 1997 to help parents, whose yearly income is above the cut off to qualify for Medicare, but too low to pay for private insurance, provide health insurance for their children. The law provides coverage for families with annual incomes up to 200% of the federal poverty level.

Resources

• U.S. Department of Health and Human Services - State Children's Health Insurance Program [1]
• U.S. Department of Health and Human Services: Insure Kids Now! [2]
• Center for Children and Families, Georgetown University Health Policy Institute [3]