Maryland may receive approximately $965.1 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 Maryland to expand health coverage to many more of its 132,686 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 Maryland’s children, especially the 132,686 children who are currently uninsured,” said Ron Pollack, Executive Director of Families USA. “This $965.1 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 Maryland would not only help children, but it would also improve Maryland’s economy. Over the next five years, the $965.1 million in new federal funding could create:
- $425.6 million in increased business activity;
- $150.9 million in increased wages; and
- 4,363 additional jobs for state residents.
Federal funding for SCHIP is provided in an annual allotment that becomes available to Maryland with state matching funds. The federal government pays Maryland $1.86 for each dollar the state spends on the Maryland Children's Health Program (MCHP). This matching formula is more generous than the matching formula provided to Maryland under the Medicaid program.
"I commend the report issued by Families USA that estimates Maryland could receive an additional $965 million in federal SCHIP funding over the next five years,” said Congressman Van Hollen. “With the state exhausting its federal SCHIP allotment funding this month, it is imperative that Congress reauthorizes this important program. The clock is ticking. Congress must act now to protect the health of the 132,686 Maryland children without health insurance."
"Numerous studies shows enrollment in the SCHIP program improves the health of the children, their families, and the communities in which they live," said U.S. Senator Benjamin L. Cardin, D-MD. "When previously uninsured children are enrolled in SCHIP, they are far more likely to receive regular primary medical and dental care, and they are less likely to use the emergency room for visits that could be handled in a doctor's office. They also are more likely to get necessary immunizations and other preventive care.
"There are millions of children who have not enrolled in the programs offered by their states. In fact, of the nine million uninsured children in this country, six million are eligible for SCHIP or Medicaid. We must do everything in our power to get them the coverage they need. We can help them by enacting a strong SCHIP reauthorization bill this year" Senator Cardin 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 Maryland 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.
