Insurelane Insurance Blog

Thousands of children in Arizona may be able to get their health insurance back if a Nov. 28 proposal by state hospital executives and Governor Jan Brewer is approved by the federal Centers for Medicaid and Medicare Services. If it is, then close to 20,000 youngsters will be able to enroll is a subsidized health coverage program known as KidsCare, which is aimed at low-income families.

In January of 2010 Arizona froze program enrollment due to cost-cutting procedures. There were about 46,000 children in the program when it was frozen and now there are just over 14,000, but there are over 120,000 more on its waiting list. The new proposal was constructed by Phoenix Children's Hospital, the University of Arizona Health Network, and Maricopa Integrated Health System.

These organizations will put together $226 million over the next two years to receive a total of $229 million in additional federal funds. The money will help the state and the hospitals as it will supply more insurance for children who aren’t covered while federal money will help offset the price of providing health care for which the hospitals aren’t compensated. The state of Arizona won’t be required to donate any money.

Under the proposal, the majority of federal money given to the hospitals would then offset the price of uncompensated care with the KidsCare program receiving about $44 million. Some of the federal money would go towards improvements to the three hospital systems, such as expanding the electronic health-record system and trauma services as well as adding services and beds to the Phoenix Children's emergency and pediatric trauma center departments.

According to an article by azcentral.com, if the government approves the proposal, then families which have been waiting on the list the longest would be allowed to reapply and the program will take on a total of 19,283 more patients for at least two years. The KidsCare program is designed for families that aren’t eligible for Medicaid because they earn too much. Once accepted and depending on the family’s income, members of KidsCare pay between $10 and $70 each month for coverage. It covers dental and vision care, doctors' visits, surgery, prescriptions, and emergency-room visits.

The program was introduced by Arizona in 1998 and belongs to the Children's Health Insurance Program. The state ended the program because of its budget deficit, but restored it when it realized close to $7 billion could be lost each year in federal Medicaid dollars. Enrollment was then frozen to save money, but the number of children with coverage dropped dramatically and the freeze has been challenged in court.