22,000 poor kids may lose insurance

Congress didn’t reauthorize health program for children

KEN ALLTUCKER

More than 22,000 Arizona children in low- and moderate-income families get health insurance through a federal program that Congress failed to reauthorize by a Sept. 30 deadline.

Those children won’t immediately lose their health insurance because the program’s funding will extend through the end of the year.

However, if Congress does not reauthorize the Children’s Health Insurance Program, which provides coverage to about 9 million kids nationwide, it will leave decision-makers in Arizona and other states with uncomfortable choices.

KidsCare, Arizona’s version of the federal program, covers 22,389 children, according to September figures of the Arizona Health Care Cost Containment System (AHCCCS).

Arizona was the only state without an active CHIP program when Arizona froze enrollment in 2010 due to Great Recession-triggered budget cuts.

The Arizona Legislature last year passed a bill, signed by Gov. Doug Ducey, that allowed new signups. A family of three that earns between $28,180 and $40,840 would be eligible for KidsCare in 2017. Similarly sized families that earn less than $28,180 could still be eligible for Medicaid if KidsCare funding disappeared.

Last year’s legislative action helped lower Arizona’s uninsured rate among children to 7.3 percent in 2016, down 1 percentage point from the year before, according to a report from Georgetown University’s Center for Children and Families.

With more than 12,000 Arizona children signing up for KidsCare since December 2016, it’s likely Arizona’s uninsured rate is now even lower.

But the Arizona legislation passed in 2016 required AHCCCS to initiate steps to halt new enrollment if the federal government eliminates funding.

State law requires AHCCCS to notify the governor and state legislative leaders if there is insufficient program funding, and to stop processing new applications.

Arizona should have enough money to cover KidsCare expenses through the end of the calendar year, even if Congress does not extend the CHIP program, said Heidi Capriotti, an AHCCCS public information officer.

But AHCCCS might need to consider other actions should Congress not act in a timely manner, according to Capriotti.

“If federal funding is exhausted, then it would be up to policymakers to decide how to proceed,” Capriotti said.

Children’s advocates said congressional delays in reauthorizing CHIP funding creates unnecessary stress on states.

“Some states are in a bind,” said Joan Alker, executive director of Georgetown University’s Center for Children and Families. “They are being told, ‘Don’t worry, it is going to be fine,’ but it is a very dicey situation.”

Sens. Orrin Hatch, RUtah, and Ron Wyden, DOre., last month announced a bipartisan deal that would reauthorize CHIP for five years, including extending by two years an Affordable Care Act sweetener that covers all program costs for Arizona and other states.

But the Hatch-Wyden agreement languished as Congress’ attention turned to the failed “Obamacare” replacement bill introduced by U.S. Sens. Lindsey Graham, R-S.C., and Bill Cassidy, R-La.

The House Energy and Commerce Committee is expected to consider a CHIP bill next week, although details of the legislation have not been released.

U.S. Rep. Tom O’Halleran, D-Ariz., sent a letter last month to Speaker Paul Ryan urging swift action by the House on CHIP. U.S. Rep. Martha McSally, R-Ariz., and Arizona’s three other House Democrats, Kyrsten Sinema, Ruben Gallego and Raul Grijalva, also signed the letter.

“Our providers and state officials need certainty to effectively plan for providing care to those enrolled and eligible for coverage,” the letter stated. “Parents need peace of mind to make sure their children will not experience disruptions in their health care.” HEIDI CAPRIOTTI