State Children’s Health Insurance Program (SCHIP)
State Children’s Health Insurance Program (SCHIP) Backgrounder
Contents
- America’s biopharmaceutical companies are committed to supporting public policies and programs, such as SCHIP, that help children and their families receive affordable quality health care.
- Biopharmaceutical companies believe that the U.S. health care system needs a strong safety net for its most vulnerable citizens.
- We strongly support keeping SCHIP strong to protect the health of our nation’s children and the economic well-being of their families.
- Biopharmaceutical companies believe SCHIP is one way the U.S. health care system can work better for all americans and help them to live longer, healthier lives.
America’s biopharmaceutical companies are committed to supporting public policies and programs, such as SCHIP, that help children and their families receive affordable quality health care.
The State Children’s Health Insurance Program (SCHIP) provides access to health care for eligible children whose working parents cannot afford, or are not offered, health insurance. The program was established by a broad bipartisan coalition in 1997 as part of the Balanced Budget Act of 1997. Currently, more than seven million low-income children are enrolled in SCHIP.
The popular program offers federal funds to help states provide health coverage to low-income children whose parents do not qualify for Medicaid, but cannot afford private health insurance. Eligibility rates for SCHIP vary by state and range from 150 to 350 percent of the federal poverty level. Under SCHIP, states may enroll low-income children in an SCHIP-financed expansion of Medicaid, create a new state SCHIP program or devise a combination of both approaches. States choosing the Medicaid option must provide all Medicaid mandatory benefits and all optional services covered under the state plan, while separate state programs must generally follow certain coverage and benefit options outlined in SCHIP law.
Biopharmaceutical companies believe that the U.S. health care system needs a strong safety net for its most vulnerable citizens.
During these tough economic times, 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 current economic downturn has also put enormous pressure on states’ budgets and the ability for states to provide health insurance through SCHIP. Facing unsustainable increases in demand for coverage, states have resorted to cutting benefits, eligibility levels, and provider payments in order to balance budgets.
The evidence is unequivocal that the need for essential safety net programs, like SCHIP, will only increase during recessionary times. Strengthening this system and ensuring that children receive affordable quality health care through the SCHIP program has never been more critical for the health of America’s children.
We strongly support keeping SCHIP strong to protect the health of our nation’s children and the economic well-being of their families.
Thanks to SCHIP, millions of American families have peace of mind that their children 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.
As in past economic downturns, states will continue to struggle with the mounting pressure to cut health coverage programs just at the time that an increasing number of people need the vital services they provide. 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. We believe that SChiP will help to maintain vital health coverage for low-income children during these challenging economic times. Reauthorizing 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.
Biopharmaceutical companies believe SCHIP is one way the U.S. health care system can work better for all americans and help them to live longer, healthier lives.
According to the Congressional Budget Office, legislation to reauthorize 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. 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.
In addition, 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.