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FOR IMMEDIATE RELEASE
Wednesday, September 16, 2008
For Media Assistance
SACRAMENTO, California — The Legislature-approved 2008-09 budget reverses years of progress in covering California's children by including provisions that will drop nearly 300,000 children from health coverage – increasing the number of uninsured children by almost 40 percent. For years, many legislative leaders have promised to make health coverage for all children in California a top priority. With this budget, our leaders have gone back on their commitment and taken a huge step in the wrong direction. What's more, without dealing with some of the tough issues they have left children vulnerable to even more cuts down the road.
"It is unacceptable for our state leaders to claim they are dedicated to children's health only to undermine children's ability to get and retain health coverage," said Deena Lahn, Policy Director for Children's Defense Fund California. "The Legislature will be held accountable for their irresponsible choices. We eagerly await the Governor's word on this budget but hope he will live up to his commitment to make children's health coverage a top priority and protect the children of California."
"More children need affordable health coverage now – not fewer – since more working families are struggling to make ends meet," Lahn continued. "As every parent, teacher, business owner, and doctor knows from experience, you can invest in children's health now, or you can pay a lot more down the line. It makes no sense for children to pay for the budget deficit with their health."
Background
The state Department of Health Care Services estimates that the budget's semi-annual reporting for children covered by Medi-Cal will result in 175,000 children losing their coverage by 2010 because, as the state knows, parents will not be able to keep up with the additional bureaucratic red tape. By the sunset date of December 31, 2011, we estimate that a total of more than 250,000 children will lose coverage.
As estimated by the Budget Conference Committee, this massive loss in children's coverage will generate only $26 million toward filling the $17.2 billion budget shortfall. (The Assembly Budget Committee had projected similar proposals would result in no savings at all). In fact, more bureaucracy costs taxpayers more: the state and counties will need to process additional paperwork to re-enroll children who were unnecessarily dropped from coverage. California already spends $40 million per year on unnecessarily re-enrolling eligible children who fall through the bureaucratic cracks. Other states, such as Texas and Washington, have tried semi-annual reporting but reversed course once they saw children's enrollment plummet and precious state resources wasted.
In addition, tens of thousands of children will lose coverage as their parents are unable to afford increases of up to 25 percent in Healthy Families premiums.
The 100% Campaign, a collaborative
effort of Children Now, Children's Defense Fund and The
Children's Partnership, was created to ensure that all
of California's children obtain the health coverage they
need to grow up strong and healthy.
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.
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