The state of California is considering temporarily stopping enrollment in the State Children’s Health Insurance Program (SCHIP) to avoid a $17.2 million deficit that will be caused by a glut of “new clients.” The state in general faces an $11.2 billion deficit. (Source)
Over 900,000 children in California receive health care through the program. The enrollment freeze would protect benefits for current enrollees and manage costs of the program. Lesley Cummings, executive director for the state’s Managed Risk Medical Insurance Board, which made the recommendation, said the freeze would go into effect on December 18.
“If the board does not cap enrollment, it would have to take other, more drastic actions later,” Cummings said. “Capping enrollment, rather than eliminating coverage that a child currently has, seems the preferable path…”
Throughout 2008, Democrats and Republicans in Congress debated and passed bills that would have expanded SCHIP. President George Bush vetoed at least two versions of the bills, citing concerns that better-off families who could afford private insurance would enroll in the program, depriving low-income children of coverage.
