State officials panicked...

State officials panicked over children’s health program

Several states have already notified enrollees that their coverage could be terminated at the end of January unless Congress acts in the coming days.

By RACHANA PRADHAN

Families are becoming increasingly panicked about children losing health insurance without new funding from Congress, state officials warned Wednesday as a new report showed nearly 2 million kids could be dropped from coverage next month.

Roughly 1.9 million children across the country could lose insurance in January if Congress fails to renew Children's Health Insurance Program funding, according to a new report from the Georgetown University Center for Children and Families. Another 1 million could lose coverage by the end of February if the congressional stalemate drags on.

“We’re in a terrible situation right now,” Linda Nablo, the chief deputy director of the Virginia Department of Medical Assistance Services, said on a call with reporters. More than 68,000 children and 1,100 pregnant women in Virginia could lose CHIP coverage without a funding extension.

Federal funds for CHIP, which covers roughly 9 million low-income children and pregnant women, expired on Sept. 30. Despite the program’s longstanding popularity, a funding measure in Congress has been delayed by partisan bickering. As of Wednesday afternoon, it appeared a resolution on CHIP funding could be pushed into mid-January.

Several states, including Colorado, Utah, Connecticut and Virginia, have already notified enrollees that their coverage could be terminated at the end of January unless Congress acts in the coming days. Nablo, the Virginia health official, warned that her state may have less money than originally thought and may not be able to provide coverage through the end of January.

"We are scrambling here," she said.

Alabama said it is planning to freeze enrollment Jan. 1, a month before the state will completely shut down its program covering roughly 84,000 children.

“We definitely are facing some really difficult decisions in our state right now,” Alabama CHIP Director Cathy Caldwell said Wednesday. “It’s just very, very stressful here.”

Congress had been hoping to address CHIP funding in a year-end government spending bill. But Republican lawmakers are now weighing a short-term spending deal that would keep the government funded through Jan. 19, giving them more time to hash out contentious items like CHIP funding.

The House and Senate, in principle, have both agreed on extending the CHIP program for five years and temporarily maintaining a funding boost originally provided by Obamacare. But Democrats have rejected GOP plans to pay for the CHIP extension by cutting other health programs.

Even though federal funds for CHIP expired nearly three months ago, states have relied on supplemental funding from the federal government and other measures to maintain enrollment. CMS has sent states at least $1.2 billion in unspent CHIP funds from prior years to help keep their programs open.

Nablo blasted Congress for being “naive” by thinking that it could wait until the last minute to provide new funds.

“They totally ignore the fact that these are large health care programs and they must be managed,” she said. “You don’t just wait until the day before the last dollar is spent.”