California Healthy Families Program Considers Emergency Regulations in Light of SCHIP Veto by Bush and Override Failure

[courtesy of California Progress Report]

• Federal dollars for SCHIP will run out Nov 16 without Congressional action
• Board will reconsider emergency regulations on November 5

By Anthony Wright
Executive Director of Health Access California

The Managed Risk Medical Insurance Board (MRMIB), which oversees the Healthy Families program--California's version of the State Child Health Insurance Program--today decided it would wait until at least November 5 to decide whether it should adopt emergency regulations to pave the way for creating wait-lists and disenrolling children from the program.

FEDERAL STALEMATE

MRMIB executive director Lesley Cummings had recommended the board adopt the emergency regulations in light of the fact that the State Children’s Health Insurance Program (SCHIP) expired on September 30 and Congress and President Bush are still wrangling over how to continue the program – and for how much. Bush had originally allotted $25 billion over five years – which would cause California’s program to fall into deficit by the end of our fiscal year 2008. Meanwhile, Congress has proposed a total of $60 billion over five years, and enable expansions to the program, which the President opposes.

The SCHIP legislation managed to obtain a veto-proof majority in the Senate, but failed twice in the House of Representatives – falling less than 20 votes short of 290 votes needed last week -- to override Bush’s veto of the Congressional SCHIP bill.

Ronald Springarn from MRMIB said Washington insiders have reported that the Administration and Congressional leaders continue to work toward a compromise to continue the program. Sticking points continue to be whether families above 300% of poverty could be eligible for funding in states that allow it (such as New Jersey); and whether a threshold for low-income children enrolled in SCHIP would have to met before others are enrolled.

CALIFORNIA'S HEALTHY FAMILIES SITUATION

Director Cummings emphasized that the board action did not mean any of the 830,000 children currently enrolled would be kicked off imminently. Nor would it mean the program would institute a waiting list. Cummings said she viewed it as her job to guide the board to be financially responsible in managing the program.

“You don’t have a farthing for this program on November 17,’’ she said. Healthy Families receives $2 for every $1 state dollar put into the program. While federal dollars may not come immediately, the 07-08 state budget has appropriated $392 million from the state’s general fund for the program.