President Obama released his final budget proposal and included a number of provisions that would help improve health coverage for children and families. Those provisions include the following:
• Fully funding CHIP through FY 2019. Last year, CHIP funding was extended through FY 2017 maintaining an important source of coverage for about 8 million children. States need to know that financing is secure so they can keep children’s health coverage stable as the health care coverage system continues to evolve. MACPAC estimates that more than 1 million children now on CHIP could end up uninsured if this popular program were to be discontinued.
• Encouraging reluctant states to help those in the health care coverage gap by extending the period of time they can draw down 100 percent federal funding. The President’s budget proposal would extend the 100 percent federal funding for the first three years of Medicaid expansion for states even if they have not yet taken up the option. Under the Affordable Care Act, the federal government covers 100 percent of expansion costs between 2014 and 2016 and gradually reduces it to 90 percent in subsequent years. States that had not chosen to expand Medicaid by January 1, 2014 would get less than three years of full funding under current law. It’s unlikely that Congress will approve this proposal but it’s encouraging to see that the Obama Administration is trying to find ways to encourage states to help more uninsured parents and other adults. Jon Peacock and Sashi Gregory of the Wisconsin Council on Children and Families explain in their blog post how much states like Wisconsin could save if Congress were to approve this proposal.
• Removing barriers to Medicaid and CHIP enrollment. The President’s budget proposes to cut red tape and make it easier to enroll and stay enrolled in coverage by making Express Lane Eligibility (ELE) a permanent option for states and extending the 12-month continuous eligibility option to adults. Express Lane Eligibility, which is set to expire at the end of FY 2017 , allows states to use information they’ve already collected and verified to enroll eligible children in Medicaid and CHIP. Research shows the option boosts enrollment and lowers states’ administrative costs. States have made good use of 12-month eligibility to keep children covered even when their parents income fluctuates. Both of these options help alleviate unnecessary administrative burdens for states and beneficiaires.
• Boosting Medicaid payment for primary care. The budget reinstates health reform’s temporary boost in Medicaid payments for primary care services (which expired at the end of 2014) and extends it to more types of primary care providers. Research has shown that increasing Medicaid provider reimbursement rates improves access by encouraging providers to accept new Medicaid patients.
For a more in depth analysis of the President’s budget, visit the Center on Budget and Policy Priorities website.
