Maine may receive approximately $362.4 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 Maine to expand health coverage to many more of its 20,922 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 Maine’s children, especially the 20,922 children who are currently uninsured,” said Ron Pollack, Executive Director of Families USA. “This $362.4 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 Maine would not only help children, but it would also improve Maine’s economy. Over the next five years, the $362.4 million in new federal funding could create:
- $141 million in increased business activity;
- $53.9 million in increased wages; and
- 1,857 additional jobs for state residents.
Federal funding for SCHIP is provided in an annual allotment that becomes available to Maine with state matching funds. The federal government pays Maine $1.72 for each dollar the state spends on the SCHIP portion of MaineCare. This matching formula is more generous than the matching formula provided to Maine under the Medicaid program.
"Over the last decade, SCHIP—the largest expansion of public health insurance since the creation of Medicare and Medicaid in 1965—has proven to be remarkably effective. However, Maine is one of 14 states that will face shortfalls in SCHIP funding this year. I am pleased to be an original cosponsor of the bipartisan 'Keep Children Covered Act' to shore up these shortfalls to ensure that children currently enrolled in the program do not lose their coverage,” Senator Susan M. Collins said.
“SCHIP has helped the nation move closer to the goal of quality health care for all children. As Congress moves forward with reauthorization, I am committed to seeing that this essential program has the necessary funding needed so that the progress we have made during the past 10 years will continue into the future" Senator Collins 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 Maine 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.
