Despite Nearly One Million New Children Living in Poverty, Children’s Uninsured Rate Declines

9/10/2009

WASHINGTON, DC – Today, the U.S. Census Bureau released new data showing that while the number of children living in poverty has skyrocketed, the uninsured rate for kids has dropped for the second straight year. Although child poverty has reached its highest rate in a decade, uninsured rates for children withstood the trend due to enrollment in the Children’s Health Insurance Program and Medicaid. The Census report shows that in 2008, 14.1 million children were living in poverty and 7.3 million were without health insurance.

Child Health
The year 2008 saw the number of children without health insurance fall from 8.1 million in 2007 to 7.3 million children, the lowest rate in more than 20 years. This represents 9.9 percent of the child population, down from 11 percent in 2007. The decline comes during the same period where the overall uninsured rate rose by 600,000.

“We are pleased to see the number of uninsured children fall again, despite serious increases in child poverty,” said Bruce Lesley, president of First Focus. “This is entirely due to the overwhelming success of the Children’s Health Insurance Program and Medicaid. But with over seven million kids living without insurance, there is much yet to be accomplished. Indeed, the renewal of CHIP will give states additional resources to continue to bring this number down. As Congress considers reforming our nation’s health care system, they should enact health reform that includes a 'do no harm' standard that builds upon and strengthens Medicaid and CHIP, rather than undermines these successful programs.”

Child Poverty
The Census data indicates that 19 percent of children living in the U.S. are in poverty, as compared to 18 percent in 2007. It is the highest percentage of child poverty since 1998, when it reached 18.9 percent. However, the national percentage of all Americans living in poverty has increased from 12.5 to 13.2 percent of the total population, meaning that in 2008, 35.4 percent of all people living in poverty were children.

“Today’s figures show another serious increase in the number of children living in poverty,” Lesley added. “Last year, advocacy groups and economists warned that a struggling economy would lead to increases in child poverty. As unemployment rates, home foreclosures, and the costs of health insurance remains high, keeping our children out of poverty must be a top priority for Congress and the President. While the enactment of the stimulus was a very positive start, lawmakers must take additional notice of what is happening to our children, and provide families with the assistance they need. This means investing in successful, common sense measures such as an expansion of the Earned Income Tax Credit, Temporary Assistance for Needy Families program, the Child Tax Credit, and others.”