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Washington D.C. – Today, the bipartisan child advocacy organization First Focus expressed its deep concern about significant cuts to children’s health coverage that were included in the FY 2011 budget compromise reached late last week. In an attempt to avert a government shutdown, lawmakers agreed upon a spending package that cuts $3.5 billion from the popular Children’s Health Insurance Program (CHIP), which ensures health coverage for children in working families who are not eligible for Medicaid but whose families cannot afford to buy private coverage on their own.
First Focus President Bruce Lesley issued the following statement in response to the budget compromise:
“After analyzing the details of last week’s budget agreement that were released early Tuesday morning, we are deeply disappointed that Congress and the Administration rely on substantial cuts to the successful Children’s Health Insurance Program (CHIP) to score budget savings. In fact, over 9 percent of the total cuts in the agreement come from CHIP, which is well known by members on both sides of the aisle as a cost-effective program with bipartisan roots that has demonstrated enormous success in providing health care services for millions of children.
“An important component of the CHIP Reauthorization Act, passed in 2009, is annual performance bonus payments to states, which provide support for states to eliminate red-tape barriers that prevent the enrollment of approximately 6 million uninsured children who are eligible but are not yet enrolled in public coverage. The 2011 budget agreement cuts $3.5 billion from this fund which is designed to support state efforts to protect and improve children’s health care, especially during economic down times when state budgets are extremely tight. We know the governors want to do the right thing when it comes to children’s coverage, but it is difficult to imagine that the amazing progress made in recent years will be able to continue if Congress continues to raid children’s health funding.
“A February 2011 Commonwealth Fund study confirmed that federal programs like Medicaid and CHIP are allowing kids to get the health care they need before their care becomes more urgent and expensive down the road. The evidence is clear that these programs have helped preserve, and even continue to improve, health coverage for children, despite the severe recession. According to the Commonwealth study, while coverage rates for parents have declined in 41 states over the past decade, children have fared dramatically better, with rates increasing in 35 states over the same period.
“While we recognize that the current budget climate requires difficult decisions, CHIP is a cost-effective program that ensures children in low-income families are provided with access to the coverage they need to stay healthy. Federal resources dedicated to improving health care access and outcomes for vulnerable children should be off limits and should never be part of any wrangling over the federal budget, especially since these investments are essential to our future as a nation.”