2009 Burlison Capitol Report Week 10 SCHIP

The Governors call to insure 20,000 additional children under SCHIP called for the State to spend $23.6 million of tax payer funded General Revenue in the Supplemental budget, then maintain the expansion through use of one stimulus money in the 2010 budget, leaving the tax payers to pay for the continuing burden beyond when the one time stimulus money is exhausted or force reductions in coverage, future deficits or potential tax increases—or all three.




Budget Chair Allen Icet has pointed out that the supplemental budget cannot expand programming in this way according to Missouri Constitutional limitations. As Bentley points out below, SB 539 required families on SCHIP beginning in September of 2005 to pay premiums if their household income is 150% of Federal Poverty Level (FPL) or above. The gubernatorial plan would seem to contradict Missouri law based on both Constitutional and statutory grounds.




Those that falsely claim we have cut SCHIP and childrens health care coverage in the last four years are simply misinformed and/or are misrepresenting the facts. We have actually expanded SCHIP and other forms of childrens health care coverage, such as presumptive eligibility through FQHCs, during the last 4 years. Missouri Children can qualify for SCHIP up to 300% of FPL, which is $66,150 for a household of 4 and $77,370 for a household of 5.




To eliminate premium payments for children whose parent(s) earn between 150% of FPL ($33,075 for unit of 4) and 225% of FPL ($49,613 for unit of 4) and reduce premiums to $50 for households earning between 225% and 300% of FPL does not add 20,000 children to SCHIP. It simply gives an additional 20,000 plus children free health insurance like those who currently receive free coverage below 150% of FPL. It is a shell game. This is welfare expansion into the middle class and those with upper class incomes at the expense of Missouris most vulnerable.




The right approach to SCHIP is not to spend 23.6m of tax payer funded GR to give free coverage to children whose parents already willingly pay for it. The right approach is to expand eligibility awareness, enrollment and re-verification and retention.




Our focus should be on the most vulnerable Missourians—from at risk children to vulnerable seniors to those with physical and developmental disabilities—not children in higher income ranges whose parent(s) can clearly afford and willingly pay a premium offset for their childrens health insurance.

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