WASHINGTON — Gov. Sonny Perdue on Tuesday criticized the federal funding formula for the State Children’s Health Insurance Program that he blames for massive shortfalls in Georgia’s PeachCare for Kids health insurance program.
He said the funding shortages could result in thousands of Georgia children losing their health care coverage.
“We’ve enrolled so many kids in SCHIP that our percentage of uninsured children has dropped dramatically,” Gov. Perdue testified before Congress. “And, because of a flawed funding model that partially bases states’ allotments on the number of uninsured children, Georgia (is) facing growing shortfalls.”
The governor said he worries that Democratic-backed plans to expand SCHIP to cover more middle-income children and families could cause greater hardship for Georgia.
Congress twice in 2007 failed to override vetoes from President Bush on bills that would have expanded federal funding for the program by $35 billion over five years via a cigarette tax hike to help pay for the increased coverage.
SCHIP programs, such as PeachCare, provide health coverage to children of families who earn too much to qualify for Medicaid but cannot afford private insurance.
“Some states have expanded their programs to include health insurance for other groups, even childless adults,” Gov. Perdue, a Republican, said. “But the goal of this program all along was to provide an answer to an insurance need for our most vulnerable population: low-income children.”
As of January, PeachCare had 234,720 children enrolled.
Gov. Perdue was joined by Mississippi Gov. Haley Barbour, also a Republican, in protesting the proposed SCHIP expansion.
But three Democratic governors also testifying Tuesday before the House Subcommittee on Health said they have successfully implemented expanded SCHIP programs in their states.
They contended that income requirements sought by the Bush administration can disqualify many children from health coverage they need, even though their families can not afford it.
“Every child without health insurance that cannot attain it is deserving of the coverage,” Ohio Gov. Ted Strickland said. “I don’t see a legitimate way to see the difference between one child needing coverage and another.”
The Democratic governors directed their frustration at an August 2007 Bush administration directive that said states must cover 95 percent of the poorest children from families earning below 200 percent of the poverty level — $41,300 for a family of four — before expanding their programs for higher-income children.
Congress in December authorized a temporary extension of SCHIP funding that expires March 2009, and lawmakers are intent on passing a longer-term reauthorization this year.
Rep. Nathan Deal, R-Ga., the ranking Republican on the subcommittee, said SCHIP needs to have a formula where funding for states is distributed fairly and programs are uniform. He has consistently opposed the Democratic-proposed expansion of the program.
“How do you allocate money so you don’t have a system where rich states can do things that poorer states can’t afford?” he said.
