Iowa may receive approximately $373.3 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 Iowa to expand health coverage to many more of its 51,420 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 Iowa’s children, especially the 51,420 children who are currently uninsured,” said Ron Pollack, Executive Director of Families USA. “This $373.3 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 Iowa would not only help children, but it would also improve Iowa’s economy. Over the next five years, the $373.3 million in new federal funding could create:
- $148.8 million in increased business activity;
- $55.3 million in increased wages; and
- 1,966 additional jobs for state residents.
Federal funding for SCHIP is provided in an annual allotment that becomes available to Iowa with state matching funds. The federal government pays Iowa $2.76 for each dollar the state spends on Health and Well Kids in Iowa (hawk-i). This matching formula is more generous than the matching formula provided to Iowa under the Medicaid program.
“When working families don’t have access to health insurance for their children, the consequences can be dire. Babies may not get the checkups that make sure they are growing healthy and strong, parents may wait until a child is very sick before seeking medical help, and untreated illnesses can have long-lasting consequences, such as hearing loss caused by ear infections,” said Senator Tom Harkin. “When Congress created SCHIP in 1997, we took a huge step in decreasing the number of children who are uninsured. Nearly 35,000 children in Iowa have access to doctor’s visits, hospitals, emergency care, and preventive care because of SCHIP. Iowans can rest assured that I will do everything in my power to ensure we keep money flowing to this vital program for Iowa kids.”
"SCHIP has been hugely successful not only in the state of Iowa, but across the country. I strongly support the expansion of this program to ensure that all eligible children in my home state of Iowa receive the health care coverage they need. Children are our future, and we must make sure that they have access to medical care," said Representative Leonard Boswell.
"All Americans should have access to affordable, quality health care," said Representative Bruce Braley. "I believe the first step in solving America's healthcare crisis is ensuring that every child has access to health insurance. As Families USA has shown in this study, expanding access to the State Children's Health Insurance Program has a deeply positive impact on Iowa. These findings should reinforce the idea that committing to our children's well-being is the best thing we can do for Iowa's future."
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 Iowa 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.
