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State Children’s Health Insurance Plan
(SCHIP)
February 2009
AN OVERVIEW | of SCHIP
WHAT
SCHIP was established by a broad bipartisan coalition in
1997 as part of the Balanced Budget Act of 1997. The
popular program offers federal funds to help states
provide health coverage to low-income children.
WHO
SCHIP provides access to health care for eligible children whose
working parents cannot afford, or are not offered, health
insurance. Eligibility rates for Medicaid and SCHIP vary by state
and range from 150 to 350 percent of the federal poverty level.
HOW
States may enroll eligible children in a SCHIP-financed
expansion of Medicaid, create a new separate state SCHIP
program or devise a combination of both approaches.
WHY is SCHIP important | in today’s economy?
The United States is suffering from a severe
economic downturn.
An increasing number of people are
losing their jobs and their health
coverage. Each additional percentage
point rise in the unemployment rate
will increase Medicaid and SCHIP
enrollment by 1 million.
The downturn has put pressure on states’
budgets and the ability to provide health
insurance through SCHIP. Facing
unsustainable increases in demand for
coverage, states have resorted to cutting
benefits, eligibility levels, and provider
payments to balance budgets.
The evidence is unequivocal that the need for essential safety net
programs, like SCHIP, will only increase during recessionary times.
THE BENEFITS | of SCHIP
I.
Thanks to SCHIP, millions of American families have peace of mind that their childrens have
health coverage and can receive regular health exams and preventive care. For more than
10 years, SCHIP has effectively safeguarded the health of these children and helped them
get an early start at leading healthy lives.
II.
According to the Congressional Budget Office, continuing SCHIP will reduce the number of
uninsured children by more than four million, including the 1.6 million who are currently
eligible for, but not enrolled in, Medicaid or SCHIP.
III.
Expanding SCHIP will continue to provide comprehensive health coverage to more than
seven million low-income children who are currently enrolled, and will extend the program
to an additional four million children.
SCHIP is essential | to healthcare reform
I.
SCHIP is a critical factor in achieving the goal of developing a health care system that
focuses on preventing and managing chronic disease and extending affordable, quality
health insurance to all Americans. By improving children’s access to health care, SCHIP
holds the promise of improving the quality of life for all of our nation’s families.
II.
This clearly demonstrates how SCHIP is helping to address gaps in health coverage and
enhance the quality of life for children who otherwise could not afford such benefits.
WE | believe…
I.
In supporting public policies and programs, such as SCHIP, that help children and their
families receive affordable quality health care.
II.
That the U.S. health care system needs a strong safety net for its most vulnerable citizens.
III.
In keeping SCHIP strong to protect the health of our nation’s children and the economic
well-being of their families.
IV.
SCHIP will help to maintain vital coverage for low-income children during these challenging
economic times.
I.
SCHIP is one way the U.S. health care system can work better for all Americans and help
them to live longer, healthier lives.
WHY we support | a strong SCHIP
Now more
than ever, it is
especially
important to
both our
economic and
our public
health that we
keep SCHIP
strong and
maintain
program
coverage for all
eligible
children.
SCHIP provides
needed relief,
as well as the
support to
move forward
on enrolling
more eligible,
uninsured
children.
SCHIP
reinforces the
federal/state
partnership
that is
fundamental
to the viability
of health
coverage
programs.
Maintaining a
strong safety
net for lowincome
children is an
important part
of the stability
of the U.S.
health system
and a positive
step toward
economic
recovery.
America’s biopharmaceutical companies
support health care reform that expands access
to high-quality, affordable health insurance for
all Americans, preserves patient and provider
choices, fights chronic disease and advances
medical innovation for the benefit of our
nation’s health and economy.
DISCUSSION