Kids’ health left behind
The Children’s Health Insurance Program (CHIP) usually flies under the radar, but this year it’s about to blow a massive hole in California’s budget. CHIP provides Medi-Cal coverage for children whose parents don’t have health insurance through their jobs but make too much money to qualify for the state’s low-income health insurance program.
CHIP is a joint federalstate responsibility, and normally Congress passes its funding portion in a low-key and bipartisan manner. (California relies on Congress for two-thirds of its CHIP funding.) This year, Congress blew its Oct. 1 deadline to renew CHIP funding, mostly because it was focused on a lamentable effort to repeal the Affordable Care Act.
Since then, Congress has moved on to a wretched tax bill — and forgotten the millions of children nationwide who depend on CHIP.
That leaves California on the hook for the nearly 2 million children who benefited from CHIP funds last year. (Pregnant women, who make up less than 2 percent of people in the program, will lose their coverage without new federal funds.)
The state has enough program funds to cover costs through the end of this year, but it could face some tough choices if federal funding isn’t restored by January. Since the state is legally obligated to maintain coverage for CHIP kids, it can’t shirk its responsibilities, either.
The worst-case scenario is a state legislature scrambling for the $2.7 billion it needs to backfill the federal support. Frighteningly, hasn’t even Sacramento started planning for this worst-case scenario. State leaders and health advocates have been lobbying Congress to focus on renewing CHIP funding. That’s important and crucial work. But the state legislature doesn’t have a backup plan for January. It needs to create one immediately. A budget gap of $2.7 billion would force the state Legislature to slash other important programs and services. Which ones? Even if states across the country successfully pressure Congress into passing a CHIP funding bill, the Republican-dominated Congress is unlikely to fund CHIP at previous years’ levels. Some GOP proposals have suggested funding a CHIP renewal through cuts to Medicaid. The Trump administration has proposed a variety of program rollbacks, including reduced benefits and reductions in funding for families who are near the top of the program’s income scale. California can’t afford to hold its breath and hope for the best. It’s time for the state Legislature to get serious and start planning for the health of California’s children.