ALERT:
On February 4, 2009 President Obama rescinded the August 17 Directive. CMS issued a letter to state health officials on February 6, 2009, withdrawing the directive and the clarifying letter.
Background
In a August 17 letter to health officials (and May 7, 2008 clarifying letter), the Centers for Medicare and Medicaid Services (CMS) established guidance to states already covering or planning to cover
children with incomes
above 250 percent of the federal poverty level (FPL).
In order to obtain federal funds to cover children in moderate-income families, states had to ensure that:
- At least 95 percent of children in the state with family income below 200 percent of the FPL have coverage.
More on the 95% Coverage Rate Requirement
- Employer-sponsored insurance for children below 200 percent of the FPL has not dropped by more than two percentage points over the prior five years. More on the Private Coverage Decline Requirement
If a state meets these new standards, CMS required that states a 12-month waiting period and the maximum cost sharing permitted by law. More on the Waiting Period and Cost Sharing Requirements
 Read a CCF Fact Sheet on the directive.
Press Accounts
- Obama Rescinds Bush SCHIP Restrictions
The Hill, February 5, 2009
- Obama Will Ease Restraints on States' Health Insurance Programs for Children
New York Times, January 20, 2009
- States Won't be Sanctioned Over Kids' Health Insurance
USA Today, August 14, 2008
- Editorial: SCHIP Limits Shortchanging Children
Philadelphia Inquirer, May 18, 2008
- Editorial: Bush Directive a Disaster for Children's Health
Sacramento Bee, April 28, 2008
- Editorial: Hurdles to Insuring Children
New York Times, April 25, 2008
- President is Rebuffed on Program for Children
New York Times, April 19, 2008
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(2/4/09)
President Obama rescinds the August 17 Directive. Read CCF's Statement.
(8/15/08)
CMS announces that it will not take compliance action under the directive against states that have approved SCHIP plans. See CCF Statement on news.
(7/22/08)
Senate Parliamentarian determined resolution not filed in time to have "privileged" status under Congressional Review Act. Read Senator Baucus's Press Release.
(7/18/08)
Senate introduced resolution to nullify the directive. View CCF's statement on the resolution.
(5/22/08)
Senate included rescission of the directive in the Iraq supplemental bill.
(5/8/08)
Reps. Pallone and Shea-Porter introduced legislation to block the directive.
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