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Press Coverage

Legislature must fund children's health care

Capitol Weekly
By Ted Lempert and Jim Keddy
June 22, 2006

The Legislature has an opportunity to improve children's health through this year's state budget. The Governor has proposed $23 million for local communities that have already made the choice to cover all kids but are running out of money. Providing stop-gap funding for these existing, effective children's health programs makes strong fiscal sense for California; the well-known downstream costs associated with uninsured children are much higher than investing in preventive care early on.

The $23 million is earmarked specifically for what are known as “Healthy Kids” programs. These programs are local children's health initiatives that combine public and private funding to cover more kids and deliver other economic benefits to the state. For example, for every new child covered by the flagship Santa Clara Healthy Kids plan, the program also enrolls roughly one additional child in a state-run insurance program. This benefits the state economically because the Federal government provides up to $2 in matching funds for every dollar California invests in these state programs. That level of guaranteed matching is – at least in our experience – unheard of in the private sector, topping even the most generous employer-sponsored 401(k) programs.

Already, many additional counties have determined that it's a smart investment to provide health insurance to all their children through Healthy Kids programs, including: Alameda, Fresno, Kern, Los Angeles, Napa, Riverside, San Bernardino, San Francisco, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Cruz, Solano, Sonoma, Tulare, and Yolo. Another 15 counties are in the process of launching new Healthy Kids programs. Through Healthy Kids program in these counties, children in families that make less than $49,800 annually (for a family of three) qualify for subsidized health insurance regardless of immigration status. This diverse group of communities knows first-hand that providing health insurance to all of their children is the right decision; it's the fiscally-responsible choice, and it reflects the community's belief that all children deserve a chance to thrive.

These counties realize that a program for insuring all kids means that they can deliver more cost-effective health care and get more bang for the buck. In other counties, uninsured children must access health care in its most expensive form – through publicly-supported emergency rooms. Counties with Healthy Kids programs have also found that the simple message – “We can help insure all kids” – is the best way to get families to bring uninsured kids in for coverage. These local efforts have been so successful that most now have kids on waiting lists for coverage, a problem that the $23 million investment would help resolve.

What's more, roughly 80 percent of California voters agree that all children in the state should have access to affordable health insurance, providing strong support for the state budget's inclusion of the $23 million in funding for children's health coverage. That's as close as we come to a consensus in this state, and this nearly-unanimous public support should not be surprising given the clear rationale for insuring the health of all of our children.

About 800,000 children in California do not have basic health insurance today. It is important to note that the additional $23 million in funding would cover just a small portion of these children for a period of one year. So, it's not the long-term solution. But it's a good step in the right direction. In November, California voters will have the chance to provide a long-term health insurance solution to all remaining uninsured children in the state by passing the Tobacco Tax Initiative of 2006.

We urge the Legislature to include the $23 million in funding for Healthy Kids programs in the final budget. This is the common-sense decision and the will of the people, both facts that should not be obscured by partisan politicking.

Ted Lempert is the president of Children Now. Jim Keddy is the director of PICO California.

The 100% Campaign, a collaborative effort of Children Now, Children's Defense Fund and The Children’s Partnership, with primary funding from The California Endowment, was created to ensure that all of California’s children obtain the health insurance they need to grow up strong and healthy. www.100percentcampaign.org.

The PICO California Project is the united effort of 20 California congregation-community organizations affiliated with the PICO National Network.  Collectively, we represent 350 congregations and 400,000 families statewide and are actively organizing in over 70 cities in Northern and Southern California. www.picocalifornia.org.