BIPARTISAN LEGISLATION TO STRENGTHEN CHILDREN’S HEALTH CARE FOCUSES ON
LOW-INCOME CHILDREN
The children’s health care bill President Bush
recently vetoed would provide coverage by 2012 to 3.8 million children who would
otherwise be uninsured. The vast majority of these children have low incomes,
as the Congressional Budget Office (CBO) has shown. Of these children:
- 1.7 million are already
eligible for Medicaid.
Most of these children live at or below the poverty line
(currently $17,170 for a family of three).
- 1.5 million are already
eligible for the State Children’s Health Insurance Program,
which covers children in
families that make too much to qualify for Medicaid but too little to afford
private insurance. Most of these children live between 100 and 200 percent of
the poverty line.
Thus, CBO estimates that 3.2
million of these 3.8 million children — or 84 percent of them — have incomes
below states’ current eligibility limits. Only about 600,000 of the
children would gain eligibility as some states broadened their SCHIP eligibility
criteria.
Further evidence that the
bill is focused on those who most need help includes:
-
Bigger state incentives to
cover poorer children.
The bill gives states financial incentives to enroll more of the approximately
6 million uninsured children who are eligible for Medicaid and SCHIP but
unenrolled. To encourage states to focus on the lowest-income children, it
gives them larger incentives for enrolling the poor and near-poor
children who are eligible for Medicaid than the modestly better-off children
who are eligible for SCHIP.
-
Effective targeting on the uninsured. CBO found
that nearly two-thirds of those who would gain coverage under the bill would
otherwise be uninsured. That makes the bill considerably more efficient than
the Administration’s proposals to provide tax breaks for the purchase of
private health insurance in the individual market. Less than one-quarter of
the benefits of the tax breaks proposed by the Administration last year would
go to people who would otherwise be uninsured, according to an analysis by MIT
economist Jonathan Gruber.
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The Center on Budget and Policy Priorities is a nonprofit, nonpartisan research organization and policy institute that conducts research and analysis on a range of government policies and programs. It is supported primarily by foundation grants. |