Pennsylvania may receive approximately $1.82 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 Pennsylvania to expand health coverage to many more of its 280,831 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 Pennsylvania’s children, especially the 280,831 children who are currently uninsured,” said Ron Pollack, Executive Director of Families USA. “This $1.82 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 Pennsylvania would not only help children, but it would also improve Pennsylvania’s economy. Over the next five years, the $1.82 billion in new federal funding could create:
- $820.6 million in increased business activity;
- $287.7 million in increased wages; and
- 8,498 additional jobs for state residents.
Federal funding for SCHIP is provided in an annual allotment that becomes available to Pennsylvania with state matching funds. The federal government pays Pennsylvania $2.13 for each dollar the state spends on CHIP. This matching formula is more generous than the matching formula provided to Pennsylvania under the Medicaid program.
"This report makes clear the urgency to provide the full $50 billion in additional funding for SCHIP. This new funding will triple the money Pennsylvania receives and greatly increase the number of children receiving health care. One of my top priorities this year is to do everything I can to secure the $50 billion for the SCHIP reauthorization this year," said Senator Robert P. Casey, Jr.
"I solidly support the 10-year reauthorization of SCHIP. Pennsylvania's children and children throughout the nation deserve no less than high quality and affordable health care," said Congressman Robert A. Brady. "The increased SCHIP funding will also impact new business activity and it will help to create new jobs and higher wages."
"Last year Pennsylvania took a giant step forward by expanding CHIP to cover all children in the Commonwealth regardless of income. This was a significant achievement but, we are not at the finish line yet. In order for us to continue our success of providing health insurance to children, we must ensure that the SCHIP program is reauthorized, modernized and receives the $50 billion necessary to cover children in our state and throughout the nation," said Alisa Simon, Health Policy Director of Philadelphia Citizens for Children and Youth.
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 Pennsylvania 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.
