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Federal Battle Brewing over Children’s Health Care

Grassroots pressure is mounting to provide health coverage to all children in the United States. Yet with Medicaid under the budget ax and a looming battle in Congress over reauthorization of the State Children's Health Insurance Program (SCHIP), federal funding needed to keep low-income children healthy is at risk.  PICO leaders are working locally and at the state level to expand access to affordable health coverage for children and adults, and preparing now for what is expected to be a major national debate over health care priorities in 2007.

Next spring Congress will decide the future of two critically important programs that currently provide health insurance to 30 million children and hold the keys to covering the remaining 9 children nationally who still lack coverage.  Congress is expected to debate reauthorization of the State Children's Health Insurance Program (SCHIP) at the same time that it considers major changes to the Medicaid program.  Medicaid provides states matching funds to cover more than 25 million low-income children, while SCHIP makes block grants that help states offer affordable coverage to an additional 4 million children from families with slightly higher incomes.  Yet, despite their remarkable success in expanding coverage for children over the past decade, Medicaid and SCHIP now face an uncertain future.

The nation stands at a crossroads on children's health.  Most health care experts see strengthening Medicaid and SCHIP as the best path to covering the remaining 9 million uninsured children in the United States.  The goal of covering all children is within sight and would be a historic accomplishment.  Yet Medicaid has been the focus of budget cuts in Congress and in state capitals and the SCHIP program is running out of money.  Next year, 17 states will exhaust their SCHIP funds (click here for a more detailed analysis and list of 35 states expected to run out of SCHIP money over the next five years). Just to cover the existing number of children who depend on SCHIP, Congress will have to add $12-18 billion over the next five years.  Without any additional funding, 1.8 million low-income children would lose their health insurance.

Worse, SCHIP and Medicaid potentially are on a collision course.  Medicaid provides the foundation upon which SCHIP builds and the two programs have a long history of working together.  But Congressional budget rules make Medicaid cuts a possible source of funds to either maintain or expand SCHIP.  

SCHIP reauthorization shines a bright light on the opportunity to provide health coverage for every child in the United States.  Reauthorization of SCHIP could include positive steps to expand coverage, including creating financial incentives for states to expand eligibility to additional children and promoting successful programs that remove barriers to enrollment.   If, however, efforts are not made to ensure that Medicaid remains strong during the debate over SCHIP, there is a real danger that funds to renew a health program designed to meet the needs of low-income children will come from cuts to the Medicaid program which provides essential coverage to the very poorest children in the nation.

Debate in Washington over children's health comes at a time of increasing grassroots pressure to expand coverage for children and families.  PICO has been at the center of these efforts.   Debate in Washington over children's health comes at a time of increasing grassroots pressure to expand coverage for children and families.  PICO has been at the center of these efforts.  PICO's member congregations in 150 cities and 18 states share a common faith perspective that we all must care for our neighbors, and that no one should suffer disadvantage when God's creation gifts us with so much abundance.  Our children are our future.  Just as providing every child with quality education is critical to our future as a nation, we believe that assuring that every child has access to health care is essential for a strong and health society. 

In 2000, People Acting in Community Together, the PICO federation in San Jose, created the first program in the nation to provide affordable health insurance to every child in the county.  PICO federations helped spur on similar Children's Health Insurance initiatives in dozens of counties in California.  This year PICO California worked with health care groups to put a tobacco tax initiative on the November 2006 ballot that would raise funds to offer affordable coverage to more than 800,000 uninsured children.  PICO federations across the country have been working on initiatives to cover the uninsured; and in 2005 they came together to help prevent $3 billion in Medicaid cuts and protect children from new access fees and benefit cuts. 

Yet all local and state efforts to improve children's health rest on the foundation of Medicaid and the State Children's Health Insurance Program (SCHIP).   That's why, as PICO federations continue to promote healthy children and families in our cities and states, our network is organizing so that faith communities and working families have a strong voice in federal health policy.

For more information on PICO's health care efforts visit http://www.piconetwork.org/qualityhealthcare.html

For more information on SCHIP and Medicaid visit http://ccf.georgetown.edu/.