Healthy Kids Act of 2007 Would Expand Health Care Coverage for Children

The Healthy Kids Act of 2007 would shore up funding for the State Children’s Health Insurance program (SCHIP), increase funding for full enrollment in the program, and expand coverage to put the United States on a path to covering all children. Rep. Rahm Emanuel (D-Ill.) and Rep. Ray LaHood (R-Ill.) announced at a press conference last month that they would introduce the legislation.

Nine million children in the United States currently lack health insurance, and, for the first time since 1998, the number of uninsured children has risen (from 10.8 percent to 11.2 percent). The Healthy Kids Act of 2007 attempts to reverse this trend by fully funding SCHIP for the next five years and providing states with financial incentives and resources to enroll the 6.8 million children who are currently eligible but not yet enrolled in Medicaid or SCHIP. The bill would also offer families with income higher than current SCHIP eligibility levels a refundable, advanceable tax credit to purchase employer-based or state-based health insurance. (In this article details regarding the Healthy Kids Act of 2007 are from Representative Emanuel’s congressional website.)

Through the Healthy Kids Act of 2007, states may receive a 2 percent increase in their Medicaid matching funds if the state governments streamline Medicaid enrollment procedures and implement these administrative measures: secure presumptive eligibility, provide 12-month continuous enrollment, allow for automatic renewal, eliminate the asset test, and permit self-declarations of income.

States would have the opportunity to enroll, in Medicaid or SCHIP, children who are eligible for other federally financed programs, such as food stamps. The bill would give states the option of enrolling legal immigrant pregnant women in Medicaid and legal immigrant children in Medicaid or SCHIP.

Since states can expect an increased number of Medicaid enrollees due to the Healthy Kids Act of 2007, the bill also calls for the secretary of health and human services to allocate additional funds—up to 10 percent of the state’s Medicaid resources—to cover unforeseen costs that new enrollees accrue.

The bill offers families who fall between 200 percent and 350 percent of the federal poverty level a health savings tax credit; this credit would allow them to either purchase private, employer-based insurance plans or pay into SCHIP.

The Healthy Kids Act of 2007 would not only complete the full promise of the SCHIP program but also put the nation on a path to covering all children and eventually all people (see Dory Meinert, “LaHood, Emanuel Push for Expanded Insurance Program: Legislation Would Give More Children Health Coverage,” Copley News Service, Feb. 17, 2007). Representatives Emmanuel and LaHood have the right idea for this year’s SCHIP reauthorization debate. It must be much more than just fixing the present SCHIP shortfall. Because of the progress made under SCHIP, covering all kids in America is within reach and a very realistic goal. Congress should embrace that goal and at least make a down payment on it this year by fully funding SCHIP and expanding beyond SCHIP’s current limits.