Governor Makes It Law, Launches FamilyCare and KidCare Expansion

Gov. Rod Blagojevich, joined by both Democrat and Republican lawmakers, signed on July 1 legislation that expands the FamilyCare and KidCare health insurance programs. The legislation’s chief sponsors were Rep. Sandra Pihos (R–Glen Ellyn) and state Sen. Barack Obama (D–Chicago).

The governor stressed in his remarks at Children’s Memorial Hospital in Chicago that the expansion of FamilyCare would occur over a three-year period. He noted that the current state budget crisis made such an increase in health insurance for low-income working families even more important. FamilyCare, he said, is one of his core priorities, and his administration is committed to see through the full three-year ramp-up of the program. 

In the first year, the eligibility level for the program is increased from 49 percent to 90 percent of the federal poverty level (or about $16,500 for a family of four). The increase extends health insurance coverage to about 65,000 working parents.

The KidCare increase takes full advantage of federal law that allows states to set eligibility at 200 percent of the federal poverty level. Illinois had failed to take full advantage of this opportunity because eligibility had been capped at 185 percent. The governor’s decision means that health insurance now is available to about 20,000 more children.

The state investment in health insurance expansion means that it will leverage a federal contribution, which covers 65 percent of program cost. Illinois will make full use of these federal funds, which in previous years had been forfeited and either reallocated to other states or returned to the federal treasury.

Promoting the programs. The expansion of both programs is effective immediately. The Illinois Department of Public Aid, or IDPA, which administers KidCare and FamilyCare programs, intends to enroll automatically approximately 12,000 cases currently enrolled in a Medicaid “spend down” program. The program had been available to people within the new FamilyCare eligibility limit. These families will no longer need to spend down substantial amounts of money in order to qualify for coverage.  

FamilyCare applications can be filed at offices of the Illinois Department of Human Services, or IDHS. KidCare applications can be filed with application agents throughout Illinois communities. If a child is already enrolled in KidCare, an eligible parent does not need to file a new application at an IDHS office; the parent can request by telephone to be added to the health insurance coverage. IDPA announced that it would soon expand FamilyCare application procedures to include the same community-based methods used to enroll children in the KidCare program. Additional details about KidCare and FamilyCare are available at www.kidcare.org.

As a practical matter, the new expansion means that, for income up to 90 percent of the federal poverty level, FamilyCare has absorbed KidCare; they are the same, and they cover the whole family. From 90 percent to 200 percent of the federal poverty level, only children are eligible for KidCare. If adults in the higher-income range need medical coverage, they can still apply for the “spend down” program; this makes sense for people with high medical needs even though it requires a significant monthly contribution.

Due to the state’s budget crisis, IDPA does not have a large budget for outreach efforts to enroll eligible children and families. This budget decision was part of a trade-off to devote most of the funds to coverage expansion. Therefore, everyone must assume responsibility to help extend the outreach effort. At a minimum, all organizations working with eligible populations should include information about these health insurance programs in their waiting rooms and publications. Agencies that can do so should consider a more aggressive publicity campaign and offer hands-on help. Ideas on how organizations can help promote the program are available from the Illinois Maternal and Child Health Coalition (www.ilmaternal.org).