State Children’s Health Insurance Plan (SCHIP) February 2009

AN OVERVIEW | of SCHIP WHAT SCHIP was established by a broad bipartisan coalition in 1997 as part of the Balanced Budget Act of The popular program offers federal funds to help states provide health coverage to low-income children. WHO SCHIP provides access to health care for eligible children whose working parents cannot afford, or are not offered, health insurance. Eligibility rates for Medicaid and SCHIP vary by state and range from 150 to 350 percent of the federal poverty level. HOW States may enroll eligible children in a SCHIP-financed expansion of Medicaid, create a new separate state SCHIP program or devise a combination of both approaches.

WHY is SCHIP important | in today’s economy? The United States is suffering from a severe economic downturn. The evidence is unequivocal that the need for essential safety net programs, like SCHIP, will only increase during recessionary times. The downturn has put pressure on states’ budgets and the ability to provide health insurance through SCHIP. Facing unsustainable increases in demand for coverage, states have resorted to cutting benefits, eligibility levels, and provider payments to balance budgets. An increasing number of people are losing their jobs and their health coverage. Each additional percentage point rise in the unemployment rate will increase Medicaid and SCHIP enrollment by 1 million.

THE BENEFITS | of SCHIP I. Thanks to SCHIP, millions of American families have peace of mind that their childrens have health coverage and can receive regular health exams and preventive care. For more than 10 years, SCHIP has effectively safeguarded the health of these children and helped them get an early start at leading healthy lives. II. According to the Congressional Budget Office, continuing SCHIP will reduce the number of uninsured children by more than four million, including the 1.6 million who are currently eligible for, but not enrolled in, Medicaid or SCHIP. III. Expanding SCHIP will continue to provide comprehensive health coverage to more than seven million low-income children who are currently enrolled, and will extend the program to an additional four million children.

SCHIP is essential | to healthcare reform I. SCHIP is a critical factor in achieving the goal of developing a health care system that focuses on preventing and managing chronic disease and extending affordable, quality health insurance to all Americans. By improving children’s access to health care, SCHIP holds the promise of improving the quality of life for all of our nation’s families. II. This clearly demonstrates how SCHIP is helping to address gaps in health coverage and enhance the quality of life for children who otherwise could not afford such benefits.

WE | believe… I. In supporting public policies and programs, such as SCHIP, that help children and their families receive affordable quality health care. II. That the U.S. health care system needs a strong safety net for its most vulnerable citizens. III. In keeping SCHIP strong to protect the health of our nation’s children and the economic well-being of their families. IV. SCHIP will help to maintain vital coverage for low-income children during these challenging economic times. I. SCHIP is one way the U.S. health care system can work better for all Americans and help them to live longer, healthier lives.

WHY we support | a strong SCHIP Now more than ever, it is especially important to both our economic and our public health that we keep SCHIP strong and maintain program coverage for all eligible children. SCHIP provides needed relief, as well as the support to move forward on enrolling more eligible, uninsured children. SCHIP reinforces the federal/state partnership that is fundamental to the viability of health coverage programs. Maintaining a strong safety net for low- income children is an important part of the stability of the U.S. health system and a positive step toward economic recovery.

America’s biopharmaceutical companies support health care reform that expands access to high-quality, affordable health insurance for all Americans, preserves patient and provider choices, fights chronic disease and advances medical innovation for the benefit of our nation’s health and economy.

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