Michigan may receive approximately $1.32 billion 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 Michigan to expand health coverage to many more of its 170,686 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 Michigan’ children, especially the 170,686 children who are currently uninsured,” said Ron Pollack, Executive Director of Families USA. “This $1.32 billion 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 Michigan would not only help children, but it would also improve Michigan’s economy. Over the next five years, the $1.32 billion in new federal funding could create:
- $528.5 million in increased business activity;
- $198.7 million in increased wages; and
- 5,941 additional jobs for state residents.
Federal funding for SCHIP is provided in an annual allotment that becomes available to Michigan with state matching funds. The federal government pays Michigan $2.28 for each dollar the state spends on MIChild. This matching formula is more generous than the matching formula provided to Michigan under the Medicaid program.
“I believe that we have a moral obligation to provide coverage for the millions of children in our nation without healthcare,” said Senator Debbie Stabenow. “This report provides even more evidence of why we must build on the successful SCHIP program and provide more affordable access to health care for every American family.”
Congressman John D. Dingell, who earlier this year introduced the Children's Health First Act, which would expand the SCHIP program to provide every child in the United States with access to affordable health insurance, added: "Let's put these findings by Families USA in perspective: right now, if you filled Michigan Stadium, Comerica Park and Joe Louis Arena with uninsured children from our State, you'd probably still need to find a few extra seats somewhere to hold them all. It should be our goal to reduce that number so that it wouldn't even fill a high school gym. We need to provide all states the means to identify and enroll the six million children who are eligible, but not enrolled in the existing programs. The bill I have introduced in the House has the potential to improve the lives of millions of children. It's a disgrace that, in a country that spends $1.9 trillion on healthcare, nearly nine million children are without health insurance. With this bill, we can maximize opportunities for children to receive the care they need to stay healthy."
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 Michigan 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.
