With negotiations at an impasse, resources must be given to states immediately

ALEXANDRIA, VA – With negotiations regarding the State Children’s Health Insurance Program (SCHIP) reaching an impasse, First Focus today called on Congress to immediately focus on a fully-funded, shorter-term SCHIP reauthorization, which will ensure states can keep all children currently enrolled and eligible for coverage.

“For states, the money is simply running out,” said Bruce Lesley, President of First Focus, a bipartisan children’s advocacy organization. “At this moment, continued coverage for low income kids is in serious jeopardy. Many states are making plans to roll back coverage for children currently enrolled in SCHIP. Some are denying eligible kids from enrolling into the program. As a nation, we should be ashamed of what is happening to American children.”

“The president and Congress have made three attempts to fix the SCHIP program. Unfortunately, all attempts have failed and time has run out. Congress must take action to ensure that every state, territory, and the District of Columbia have full funding to cover children in 2008. States should be given the ability to insure all children currently covered by SCHIP as well as those who are eligible but not yet enrolled,” Lesley added. “No child — either currently covered or currently eligible — should lose health coverage in any renewal or extension.”

Unfortunately, the current Continuing Resolution, which extends the SCHIP program until mid-December, funds children’s health programs in the states at last year’s levels. That is at least $1.6 billion short of what is needed. A recent report from the Congressional Research Service indicates that more than $6.6 billion would be required to ensure no state faces a shortfall in fiscal year 2008. Moreover, if funding remains at current levels, 21 states will not have the resources to cover their projected SCHIP spending next year and the health care of 1.4 million children and pregnant women would potentially be lost. At least nine states could run completely out of funds as soon as March 2008. As a result, many are beginning to take negative and restrictive measures now to prevent that from happening.

Lesley added, “Let’s be clear – extending and fully funding SCHIP will not be sufficient to resolve the long-term health of the program. That debate will continue. However, states are in crisis now and they are depending on federal support to maintain health care for the children currently enrolled. Providing this assistance with all necessary expedience is now paramount. This process must begin now in order to develop a workable proposal ready for passage when the Continuing Resolution expires on December 14. These things do not happen overnight.”