Administered by the Managed Risk Medical Insurance Board (MRMIB), the Healthy Families Program (HFP) is California’s Children’s State Health Insurance Program (SCHIP). HFP provides low cost insurance for children and teens. It includes health, dental, and vision coverage to children who do not have insurance and do not qualify for free Medi-Cal.
After several attempts, exciting changes are taking place at the federal level with a new administration in Washington. Just weeks after being sworn in, President Obama signed the State Children’s Health Insurance Program (SCHIP) Reauthorization Bill which will ensure that currently enrolled children continue to receive coverage as well as expand coverage to cover more uninsured children nationwide. The program will be paid for by an increase in the federal tobacco tax by 62 cents per pack, which more than double the current excise tax to a total of $1.01 per pack.
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Before the reauthorization of SCHIP was finalized the Healthy Families Program was struggling to survive.
MRMIB held a meeting on November 19, 2008 to address the need to implement a waitlist for the Healthy Families program in order to fill a projected $17.2 million deficit. Public testimony in opposition to the proposal was given by four families, as well as 30+ advocates including CPCA, CMA, CNA, Latino Coalition for a Healthy CA, Health Access, and various health plans. While few feasible alternatives were presented, there was a consensus among advocates that MRMIB should postpone the waitlist until the federal government acts or another solution to the problem is found. The Board, particularly the Chair, listened intently to testimony and closed the meeting by reiterated that they would do whatever they can to go without a Healthy Families waitlist. The next board meeting was scheduled for December 17th at which time members would cast their vote.
Following the November hearing it came to the attention of CPCA that effective February 2009; Anthem Blue Cross will be pulling out of the Healthy Families Program in several counties throughout the state. Blue Cross HMO will no longer be available in Alameda, Contra Costa, Fresno, Sacramento, SF, or Stanislaus counties. Additionally, Blue Cross EPO will not be available in Del Norte, Santa Barbara, San Mateo, Solano, Monterey, and Yolo counties. With that said, open enrollment took place through the end of December and other plans were available to choose from for the children in Healthy Families. The MRMIB website provided a grid that identified all of the plans that continue to participate in each of the counties. The document can be accessed by visiting: http://www.mrmib.ca.gov/MRMIB/Agenda102208.html#next_meetings.
In anticipation of the December 17th vote, CPCA signed-on to a letter voicing our opposition to the waitlist which was distributed to the Governor and legislators. The letter asked that they attempt to find $17 million in emergency funds to keep the program open and functioning until assistance from the federal level is obtained. It also touched on the success of Health Families over the past ten years and reiterated that if the waitlist were to be implemented 162,000 eligible children would be denied coverage.
On December 15th, First 5 California’s board voted to provide temporary relief to the Healthy Families Program in the form of $16.8 million. As a result of First 5’s generosity, MRMIB agreed at their December 17th meeting to forego a waitlist. The money allows Health Families to continue enrolling children through June 2009, giving the state of California time to find a more permanent solution.
The avoidance of a waitlist was no doubt a victory, but there remains much to be done to ensure that the Healthy Families Program will not be threatened in the future.
CPCA will continue to keep members updated as new developments emerge and information becomes available.
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