California Healthcare Crisis

By Laurette Healey

Written by: Laurette Healey Los Angeles,CA July 16, 2007

As the State of California misses the deadline on budget approval another less known but potent deadline exists and its consequence will seriously affect the future direction on healthcare insurance for all citizens of the State of California.

Congress established the State Children's Health Insurance Program (SCHIP) in 1997. SCHIP pays for uninsured children whose family incomes are low but above the limits set for Med-I-Cal. In California SCHIP funds are dispensed through the Healthy Families program. Apparently Congress was so pleased with its benevolence the allotments made available to each State were set to 1997 standards never thinking that there would ever be an increased need.

California has been particularly challenged by this strange line in the allocation sand as it were given the fact that 1 in every 8 people immigrating to the United States now choose the big orange as a place to call home.17% of the United States population reside in California + a well known blue state. Since 2003, California has spent more in SCHIP funds than it receives. The Healthy Families program covers more than 800,000 children but to support the cost of this program during fiscal year 2007 California projects spending over 300 million more in SCHIP funds than it receives from Congress to continue the Healthy Families program.

Congress must be more attentive to the needs of Border States like California. Fortunately Congress has a chance to prove it. On September 30, 2007 SCHIP funding expires and California's Congressional delegation must act to ensure sufficient funding for Healthy Families as well to make additional strides toward covering the 800,000 children already in the program as well as more than 200,000 children who are eligible for the Healthy Families program but not yet enrolled.

Without additional Federal funds California faces a multi-billion dollar gap in funding Healthy Families and must face the difficult decision to reduce Healthy Families coverage to more than 700,000 children by 2012.

Renewal of the SCHIP funding and adjusting the allocation that the State of California receives to current population needs will support California's efforts to engineer healthcare for all, and will be a determinant in health care coverage for all children.

Congress cannot abandon California on healthcare. Congress took a positive step forward when it pledged to fund children's healthcare coverage. It must take another step forward and reauthorize funding on Healthy Families program.