If their health problems are neglected, children may lose out on important developmental activities. Over time, this loss can prevent children
from achieving their full potential. (American Academy of Pediatrics)
In 1999, 20 percent of children were covered by
Medicaid. Since its beginning in 1965, Medicaid has
been instrumental in financing health-care costs for
the poor. Medicaid is a jointly funded, federal-state
health insurance program for certain low-income and
needy people and is administered by the Health Care
Financing Administration. It covers approximately
36 million individuals including children, the aged,
people who are blind or disabled, and people who are
eligible to receive federally assisted income mainte-
nance.
While Medicaid offers a great deal of health in-
surance coverage to children, the Balanced Budget
Act of 1997 took the government’s efforts one step
further by allowing states to expand Medicaid eligibil-
ity with an enhanced federal match. Once passed, the
Balanced Budget Act of 1997 restored Medicaid to
those who previously lost the entitlement after pas-
sage of the Personal Responsibility and Work Oppor-
tunity Act of 1996. It also granted states greater
flexibility when determining eligibility.
A major provision of the Balanced Budget Act of
1997 was the State Children’s Health Insurance Pro-
gram (SCHIP), also known as Title XXI, which al-
lowed for more than $40 billion to be given to states
over a ten-year period. This stipulation allowed states
to implement Medicaid eligibility expansions and
provisions to ensure enrollment of all children quali-
fied for Medicaid under federal legislation. The pas-
sage of Title XXI helped form health insurance
programs in each state for infants, children, and
teens. For little or no cost, these state insurance pro-
grams pay for doctor visits, prescription medicines,
hospitalizations, and much more. Although each state
has different eligibility rules, most states insure chil-
dren who are eighteen years or younger and whose
families earn up to $34,100 a year (for a family of
four).
SCHIP has been widely supported, and in 1999
the American Academy of Pediatrics (AAP) recom-
mended that states implement the following to ensure
that all children who are eligible for Medicaid are en-
rolled in the program:- immediately extend Medicaid coverage to all
children at or below the federal poverty level
who are younger than nineteen years old to take
advantage of the enhanced federal match of-
fered under Title XXI; - ensure that Medicaid-eligible children who lose
cash benefits under the Supplement Security In-
HEALTH INSURANCE 175