Indiana may receive approximately $960.4 million in new federal funds to increase children’s health coverage over the next five years, according to a report issued today by the consumer health organization Families USA. As a result, funding for the program will allow Indiana to expand health coverage to many more of its 162,515 uninsured children.
Both the Senate and the House of Representatives have already passed budget resolutions setting aside $50 billion above current spending for the State Children’s Health Insurance Program (SCHIP) and Medicaid over the next five years.
However, these new funds will become available to states only if two things happen: First, Congress must reauthorize SCHIP (since the program’s original 10-year authorization expires on September 30). Second, Congress must “pay for” this added $50 billion by providing new revenues and/or cutting other federal expenditures by a commensurate amount. Key congressional votes on this are expected in June.
“The stakes are high for Indiana’s children, especially the 162,515 children who are currently uninsured,” said Ron Pollack, Executive Director of Families USA. “This $960.4 million in new funding will enable these children to receive needed care that will protect their health and enable them to learn and develop into productive Americans.”
According to the Families USA report, the additional money that could be provided to Indiana would not only help children, but it would also improve Indiana’s economy. Over the next five years, the $960.4 million in new federal funding could create:
- $394.9 million in increased business activity;
- $142.9 million in increased wages; and
- 4,564 additional jobs for state residents.
Federal funding for SCHIP is provided in an annual allotment that becomes available to Indiana with state matching funds. The federal government pays Indiana $2.82 for each dollar the state spends on the SCHIP portion of Hoosier Healthwise. This matching formula is more generous than the matching formula provided to Indiana under the Medicaid program.
"There are 143,000 uninsured children in Indiana today. With the additional SCHIP funding, we can provide our children with the high-quality care they need to lead healthy and productive lives" Senator Bayh said. "Indiana must ensure that these additional funds are used for quality care to guarantee that our children receive the healthcare necessary to succeed in school and to succeed in life."
"This year Congress will reauthorize SCHIP for a period of five years. It is my hope that my colleagues and I will fully fund SCHIP and expand it to cover the growing number of children lacking health insurance," Congressman Baron P. Hill said.
"We all know the physical importance of having health insurance, but there is a critical mental component as well. Studies have repeatedly shown that children without health insurance do not perform as well in school. We cannot morally allow this to happen to our next generation," Congressman Hill said.
The Families USA report is based on data from the Centers for Medicare and Medicaid Services (CMS) and is predicated on the current state-by-state SCHIP allocation formula and Medicaid expenditures for children. The economic impact in Indiana of the new federal funding for children’s health coverage is based on the Regional Input-Output Modeling System (RIMS II) created by the U.S. Department of Commerce, Bureau of Economic Analysis.
