Campaign Update
Tuesday, June 3, 2008

Senate Budget Committee Votes to Increase Red Tape: Hundreds of Thousands of Children Will Lose Health Coverage Due to Extra Hurdles

UPDATE ON BUDGET ACTION: On Friday, both the Senate and Assembly budget committees voted to reject some of the harmful proposals that would have impacted children across the state. For details of these victories and other budget committee action, see below. However, the Senate Budget Committee passed a new policy on Mid-Year Status Reports (MSRs), which would require families to renew Medi-Cal eligibility every 6 months rather than the current annual renewal process. While the Committee adopted this proposal in lieu of the Governor's proposed Quarterly Status Reports (QSRs) – a proposal rejected last month by the Assembly Budget Subcommittee on Health – the results of this policy are much the same: as many as 500,000 children may lose coverage over time. These children are currently eligible and enrolled in health insurance through the Medi-Cal program. This one policy would swiftly negate much of California's progress of the past 10 years.

A recent report Stability and Churning in Medi-Cal and Healthy Families demonstrates that, on average, half of eligible children enrolled in Medi-Cal will be dropped from coverage at each renewal period. Thus, while the drop-off in enrollment may proceed more slowly with semi-annual reviews than with quarterly ones, the overall effect over a longer period of time may be similar. Click here for more information about MSRs and QSRs, including information about other states' experience.

In addition, the Senate Budget Committee took the following actions on other proposals that impact children's health:

• Accepted an increase in Healthy Families premiums. Children in families with income between 151-200% of the federal poverty level (FPL) would face $4 increases in monthly per-child premiums – an increase of 44% – and children in families with income between 201-250% FPL would see $2 increases per month – an increase of 13%. The Governor had proposed increases of 78% and 27%, respectively.
  
• Accepted a cap on children's dental benefits of $1,500 per year. The Governor had proposed a cap of $1,000 per year.
• Accepted a 5% cut to Medi-Cal provider reimbursement rates. The Governor had proposed a 10% cut.
• Rejected the Governor's proposed increase to Healthy Families co-payments.
  
• Rejected the Governor's proposal to deny coverage to low income working parents.
  
• Rejected the Governor's proposals to limit Medi-Cal coverage for lawful immigrant children and other immigrants.
• Rejected the Governor's proposal to cut county administrative budgets by 10%.

The Assembly Budget Subcommittee on Health also met on Friday and took the following actions on proposals that impact children's health:

• Rejected the proposal to deny coverage to low income working parents.
• Rejected the proposals to limit Medi-Cal coverage for lawful immigrant children and other immigrants. The full Assembly Budget Committee has not yet adopted the subcommittee recommendations, although it is expected.
  

THE BUDGET DEBATE IS NOT OVER. From here, MSRs and other policy proposals will be heard in the Legislative Budget Conference Committee over the coming weeks. We will update you when the Budget Conference Committee members are selected and – when the time is right – we must all tell those members Loud and Clear that they must not balance the budget on the backs of California's children.

GET INVOLVED AND HAVE YOUR VOICE HEARD! Join the Community Health Councils' Coalitions (Covering Kids & Families Statewide Coalition and LA Access to Health Coverage Coalition) for a legislative day at the Capitol, Thursday, June 12th, to educate our Governor and Legislature that these cuts are too deep and unacceptable! For questions about the event, please contact catherine@chc-inc.org.

The 100% Campaign, a collaborative effort of The Children's Partnership, Children Now and Children's Defense Fund, 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