All Entries Tagged With: "SCHIP"

CMW News: Demand for Medicaid increases while funding decreases

Since the economic recession began in December 2007, the unemployment rate has risen from 4.7 to 6.7%. Economists estimate that each 0.1% rise in the unemployment rate translates into an additional one million enrollees in Medicaid and the State Children’s Health Insurance Program (SCHIP), according to a Kaiser Family Foundation report.

This increase in enrollment comes at a time when tax revenues are falling short of predictions, leaving a large gap in funding for the programs. State governors are asking President-elect Barack Obama and Congress to increase the federal government’s share of spending by $40 billion. The governors say this would help states reduce service cuts or tax increases needed to balance state budgets.

So far, 19 states have proposed or enacted cuts to Medicaid and SCHIP for the current year or fiscal year 2010. For example, Governor Arnold Schwarzenegger (R) of California has proposed changing income eligibility for parents of SCHIP enrollees to 72% of the poverty level from the current level of 100%.

Source: San Francisco Chronicle