North Dakota may receive approximately $74.2 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 North Dakota to expand health coverage to many more of its 14,300 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 North Dakota’s children, especially the 14,300 children who are currently uninsured,” said Ron Pollack, Executive Director of Families USA. “This $74.2 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 North Dakota would not only help children, but it would also improve North Dakota’s economy. Over the next five years, the $74.2 million in new federal funding could create:
- $27.2 million in increased business activity;
- $9.9 million in increased wages; and
- 362 additional jobs for state residents.
Federal funding for SCHIP is provided in an annual allotment that becomes available to North Dakota with state matching funds. The federal government pays North Dakota $3.05 for each dollar the state spends on Healthy Steps. This matching formula is more generous than the matching formula provided to North Dakota under the Medicaid program.
"There is nothing more important to the future of North Dakota -- and to our nation -- than the health and well being of our children. That is why I drafted a budget increasing our investment in SCHIP. This additional funding is crucial and will provide a safety net for millions of children, ensuring they have every opportunity to succeed in life," said U.S. Senator Kent Conrad.
"I commend Families USA for standing up for America's children and will continue to work with them to ensure that SCHIP is available to assist our children in need," said Senator Conrad.
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 North Dakota 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.
