From:                              Anat Kelman on behalf of Children’s Defense Fund Texas

Sent:                               Friday, December 19, 2008 12:06 PM

To:                                   Anat Kelman

Subject:                          PRESS RELEASE:  Medicaid families encouraged to reapply for coverage immediately due to Hurricane Ike disruptions

 

Importance:                   High

 

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FOR IMMEDIATE RELEASE                                                                                                     CONTACT: Anat Kelman Shaw

December 19, 2008                                                                                                                   (713)664-4080, (832)488-8242 cell

akelman@childrensdefense.org

 

 

 

 

 

Medicaid families encouraged to reapply for coverage immediately due to Hurricane Ike disruptions

72,000 children at risk of losing coverage by the end of the year

 

3,500 children at risk of losing CHIP, many have not yet paid their enrollment fee

 

 

Texas – 72,000 children are at risk of losing Medicaid coverage by the end of the month, with a disproportionate impact in the Houston and Beaumont areas.  Computer system malfunctions and increased applications for Food Stamps and emergency relief caused Medicaid applications in the Houston and Beaumont areas to be delayed.

 

The Health and Human Services Commission (HHSC) is encouraging families who applied for Medicaid in September and October to return to the Medicaid office where they applied for coverage before the end of the year.  HHSC will honor family’s statements that they applied or attempted to renew coverage in September and October and will expedite applications.

 

3,500 children are also at risk of losing health coverage through the Children’s Health Insurance Program (CHIP).  According to the Health and Human Services Commission, many families have not paid their annual enrollment fee.  Families should pay their fee immediately so that children do not lose coverage.

 

Barbara Best, Texas Executive Director of the Children’s Defense Fund, said, “The Children’s Defense Fund appreciates HHSC’s good faith effort to reinstate children in health coverage.  We encourage families to reapply for Medicaid before the end of the year so that eligible children do not lose coverage.  Texas legislators and HHSC administrators must also act immediately to simplify the eligibility system so that children are not wrongfully dropped from coverage.  Texas must upgrade outdated computer systems and hire and train staff so that the eligibility system works efficiently.  In addition, Texas must provide children on Medicaid with twelve months of continuous coverage instead of requiring parents to reapply for coverage twice a year.”

 

“In the aftermath of Hurricane Ike and in a struggling economy, it is more important than ever to make sure that children’s health coverage programs are operating efficiently and that eligible children aren’t wrongfully dropped from coverage,” Best added.

 

According to the Texas Health and Human Services Commission, Texas Medicaid is expected to decline by almost 73,000 individuals by the end of the year.  Of these, 72,000 are recipients of Children’s Medicaid.  Enrollment in the Children’s Health Insurance Program (CHIP) is also projected to drop by 3,500 children.  The Texas Health and Human Services Commission indicates that the Houston area has been impacted most heavily by the enrollment loss.

 

The drop in CHIP and Children’s Medicaid is expanding Texas’ already high population of uninsured children.  Texas has the highest rate of uninsured children in the nation, with one in every five children – 1.5 million – lacking coverage.   Between 700,000 and 800,000 of the 1.5 million uninsured children in Texas are eligible for but not enrolled in CHIP or Medicaid.  Both programs provide low-cost or free health coverage for uninsured children in working families that earn less than 200% of the federal poverty level - $42,400 a year for a family of four in 2008.

 

The Children’s Defense Fund called on policy makers to take three critical steps to reduce the red tape that keeps eligible children from getting coverage:

 

·         First, Texas must upgrade the eligibility system so that applications are processed in a timely manner.  There are serious backlogs in processing Children’s Medicaid.  It is taking three months or longer in certain parts of the state to process a Medicaid application, when the federal law standard is 45 days.  Parents spend hours resubmitting application after application, resending lost paperwork, and filing appeals when their children are wrongfully denied coverage.  To make the system work as intended, Texas must hire and train staff and improve slow computer systems.

 

·         Second, Texas can cut the number of uninsured children, improve their access to care and cut state workloads and backlogs, all by reenrolling kids in Children’s Medicaid once, not twice, a year – the model CHIP already uses and what’s proven to work for children and Texas.  12 months coverage for Children’s Medicaid would provide significant relief to the eligibility system by cutting the number of renewals eligibility workers would have to process in half – from 3.8 million to 1.9 million per year.

 

·         Third, Texas needs to improve how we spread the word about children’s insurance options, by doubling and focusing our outreach where children already are: in schools and local communitiesCommunity-based organizations must now serve twice as many Texans compared to the first years of CHIP, but we budget less for outreach in 2008 – 2009 than when CHIP started.  We must identify successful outreach models and take them to scale.  One promising example is the 100% Campaign, a collaboration with the Houston Independent School District and Houston hospitals.  By adding a question on health insurance to school enrollment forms, the Children’s Defense Fund has identified every uninsured child by campus.  School based outreach workers then follow up with uninsured children and link them with coverage. 

 

 

CHIP and Medicaid are a wise investment for Texas children and local taxpayers.  For every $1 invested in CHIP, Texas receives $1.47 in federal matching funds for Medicaid and $2.52 in federal matching funds for CHIP.  When children lose health coverage, they end up in local emergency rooms for care, at a staggering cost to local taxpayers.  It costs about $100 to treat a child’s mild asthma attack in a doctor’s office, while the cost of hospitalization for a serious asthma attack is $7,300.  Because of the economic benefits of children’s health coverage, the chambers of commerce in the eight largest Texas cities have endorsed maximizing federal matching funds available through CHIP and Medicaid.

 

CHIP and Medicaid provide low-cost or free health coverage to uninsured children in working families.  A family of four can earn up to 200% of the federal poverty level, $42,400 a year for a family of four in 2008, and qualify.  Families pay no more than $50 a year to insure all their children.  CHIP and Medicaid cover regular check-ups and immunizations, hospitalization, surgery, x-rays, prescription drugs, dental, vision and mental health services. 

 

To apply for CHIP or Medicaid, parents can call toll-free 1-877-KIDS-NOW or download an application from the internet at www.chipmedicaid.org.  Families who applied or attempted to renew Medicaid coverage around the time of Hurricane Ike should reapply at the Medicaid office where they submitted the initial application.

 

 

The Children’s Defense Fund Leave No Child Behind® mission is to ensure every child a Healthy Start, a Head Start, a Fair Start, a Safe Start and a Moral Start in life and successful passage to adulthood with the help of caring families and communities.  Children’s Defense Fund of Texas offices in Houston, Austin and the Rio Grande Valley work to ensure every child a Healthy Start in life and access to affordable health coverage.

 

 

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