While historic progress has been made in lowering the number of uninsured children in the United States, the number of uninsured parents has soared as fewer employers offered their workers health insurance and strict eligibility limits were in place for adults in need of Medicaid coverage.  The Affordable Care Act will extend cost-effective Medicaid coverage to 4.9 parents according to a new brief issued by Georgetown University’s Center for Children and Families.

“Covering parents is good for kids. Being insured means parents can achieve better health and improved economic security,” said Joan Alker co-executive director of Georgetown University Center for Children and Families. “We know that children thrive when their parents are healthy, insured and economically secure so the improvements in health coverage provided by the Affordable Care Act will benefit the whole family.”

The brief, published by Georgetown University’s Center for Children and Families in collaboration with researchers at the Urban Institute and funded by Atlantic Philanthropies, provides a first-ever look at the characteristics of low-income, uninsured parents nationally and in states that could gain coverage under Medicaid starting in 2014.

Under the ACA’s extended Medicaid coverage starting in 2014, 4.7 million parents can join their children who are already eligible for coverage. Among this group of parents:

• Almost 60 percent of the uninsured parents live in ten states (Texas, California, Florida, Georgia, North Carolina, New York, Michigan, Pennsylvania, Indiana, and Ohio). More than a quarter (26.7 percent) live in California and Texas.
• The majority of these parents work (54 percent), with more working full-time (31 percent), than part time (23 percent).
• Forty-seven percent of these parents are white, 29 percent are Hispanic, and 17 percent are African American

“Extending coverage to these parents can provide a good value to states,” said Alker.  “Research has shown that low-income, uninsured adults are comparatively healthy, suggesting these parents may be relatively inexpensive to cover.   Connecting them with cost-effective Medicaid coverage will help them stay healthy and avoid expensive Emergency Room visits.”

In 2010, 18.5% of parents were uninsured compared to 8% of children, according to the researchers.  The primary reason for these very different coverage rates is that while employer-based coverage has eroded for both children and their parents, Medicaid and the Children’s Health Insurance Program (CHIP) have been able to help fill the gap for children.

All states cover some parents through Medicaid, but the eligibility threshold is generally very low. As of January 1, 2012, the median Medicaid eligibility threshold for parents was only 63 percent of the federal poverty level (FPL) or  $19,000 for a family of three.  The median threshold for children’s coverage was 250 percent of the FPL or $48,000 for a family of three. In 2014, when the Affordable Care Act (ACA) is fully implemented, Medicaid eligibility will be extended to all adults, including parents, with incomes up to 133 percent of the FPL or $25,000 for a family of three.

The Center for Children and Families (CCF) is an independent, nonpartisan policy and research center whose mission is to expand and improve health coverage for America’s children and families.