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By Aurelio Rojas
Sacramento Bee
December 3 , 2007
For children in low-income families, the state-run Healthy Families program has been a godsend.
The program, which receives $2 from the federal government for every $1 California spends, provides health, dental and vision coverage for roughly 835,000 children whose parents earn more than Medi-Cal allows.
"Without this program we couldn't afford to take the children to a doctor when they get sick," said Juanita Gonzales of Woodland, a stay-at-home mom whose husband does not receive health insurance through his employer and whose sons, 5-year-old Jose and 3-year-old Juan, are covered by Healthy Families.
Largely because of the program, the share of uninsured children in California fell from 21 percent in 1998 to 14 percent in 2005, according to a report by the California Healthcare Foundation.
But state officials may soon have to drop 66,000 children a month from the program and freeze new enrollment because of a funding impasse between Congress and the Bush administration.
On Friday, the state's Managed Risk Medical Insurance Board, which administers Healthy Families, postponed until next month a decision originally scheduled to be made at a hearing Tuesday in hopes that the logjam is broken by then.
California, which already has about 800,000 uninsured children, is among 21 states that will run out of money from the State Children's Health Insurance Program in July if funding for the 10-year-old federal program is not increased.
Gov. Arnold Schwarzenegger has been counting on the augmentation as a building block for providing coverage to all uninsured children in California.
But in the two months since President Bush vetoed a bipartisan bill that would have dramatically expanded the program, the administration and leaders in Congress have not been able to agree on a compromise.
A short-term extension of the program at previous funding levels is set to expire Dec. 14. Even if the extension is continued for the rest of the federal fiscal year, California would need at least $265 million more to maintain current service levels without having to drop nearly 600,000 children from coverage.
With the state facing a projected $10 billion shortfall – and negotiations dragging on between Schwarzenegger and Democrats on a universal health care deal – California's much-ballyhooed "year of health care reform" is in danger of ending with a whimper.
Assembly Speaker Fabian Núñez, D-Los Angeles, has canceled this week's scheduled floor sessions because lawmakers don't have a health care plan to vote on.
Health care is no longer the No. 1 priority in the Capitol, Núñez conceded at a news conference Thursday when he urged the governor to call a special legislative session to help homeowners with subprime loans.
"It's a more immediate crisis," Núñez said of the mounting foreclosures in the state. "You'd better believe this is the biggest crisis we're facing today."
The downgrading was disconcerting to health care advocates, who fear the window of opportunity is closing on their efforts to reduce the ranks of the 6.7 million Californians without insurance.
"Our message remains the same: We support full health care reform, but we're getting down to the wire," said Deena Lahn, policy director for the Children's Defense Fund of California. "We also want to point out that kids are the only group at risk of losing existing coverage if we don't act."
For weeks, Schwarzenegger and Núñez – the Democrats' negotiator with the Republican governor – have expressed optimism that a deal was near on universal health care.
But nearly three months after the governor called a special session on health, the two sides have not agreed on how to pay for the $14 billion plan.
Democrats want employers to bear a greater burden, while Schwarzenegger believes individuals should be required to buy health insurance – as with auto insurance – with the state providing subsidies for the working poor.
While both sides agree that employers should be required to contribute to their workers' coverage, the California Chamber of Commerce contends such a mandate would violate federal law.
Schwarzenegger has suggested a long-term lease of the state lottery to private investors, with the proceeds going to fund health care. Democrats have countered with a proposed $2-per-pack cigarette tax.
Last week, state Treasurer Bill Lockyer chimed in. Rather than leasing the lottery, the veteran Democrat suggested the state continue to operate it and instead borrow money against future profits.
With so much money at stake, placating their political bases has proven insurmountable for Schwarzenegger and Núñez.
Not one Republican in the Legislature has signed on to the governor's proposal. Núñez, meanwhile, has faced resistance from some labor allies.
Art Pulaski, executive secretary-treasurer of the California Labor Federation, was among a group of labor officials who met recently with Núñez to outline a set of conditions that would have to be met in order for them to sign on to a health care plan.
Because financing would have to be approved by voters, Schwarzenegger and Núñez have been trying to build consensus to deter opponents from waging a costly campaign.
Pulaski has declined to comment on the meeting. But in a statement Friday, he said the federation remains committed to working with the Legislature to pass a health care plan that Californians can afford.
"This is a crucial issue for us, and we will see this through," Pulaski said.
Juanita Gonzales doesn't keep up with the political machinations in the Capitol. But she appreciates what Healthy Families has done for her family.
"They wouldn't stop treating children," she said of the threatened cuts. "Would they?"
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