A collaborative effort of The Children's Partnership, Children Now, and Children's Defense Fund created to ensure that all of California's children obtain the health coverage they need to grow up strong and healthy

Press Release

Tuesday, August 23, 2011

Clock is Ticking on Children’s Health Coverage


Legislators and the Governor Need to Step Up and Prevent Hundreds of Thousands of Kids from Losing Health Insurance


SACRAMENTO - On behalf of the state’s leading children’s advocates, Wendy Lazarus, Founder and Co-President of The Children’s Partnership, released the following statement in response to recent communications regarding a potential 37 percent shortfall in California’s Healthy Families budget for the current fiscal year.


Last week, the Managed Risk Medical Insurance Board, which administers the Healthy Families Program, responded to an August 12 inquiry from the Department of Finance by announcing it would have no choice but to disenroll children from health coverage unless needed revenues are again approved. If California lawmakers and the Governor fail to extend an assessment on managed care plans before the end of the legislative session on September 9, Healthy Families will lose $130 million in state funds and $260 million more in federal matching funds.


“The ticking clock is the enemy of the kids right now. Unless our officials beat the clock by extending the existing assessment on health plans, which the industry supports, hundreds of thousands of California children could lose the health care they need to stay healthy and get better when they are sick or injured. That would not only be a heartless outcome – but a fiscally irresponsible one, too.


Failure to act by September 9th would cut $130 million cut in the state’s commitment to Healthy Families’ kids and send twice that amount – $260 million – in federal funds back to Washington. To make matters worse, disenrolling children would violate federal law, jeopardizing an additional $25 billion California now receives in federal Medicaid matching funds. Divesting $390 million from Healthy Families and billions more in federal Medicaid funds makes no fiscal sense when our state is struggling to maintain vital services for working families. It would be reckless and unconscionable to allow such harm to children and to California’s strapped budget.


Legislators and the Governor have time to step up and prevent hundreds of thousands of children from losing health coverage. But time is running out. There’s a better, smarter choice. By maintaining the managed care assessment and protecting Healthy Families funding, lawmakers can keep kids healthy and keep using taxpayer dollars wisely.”