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  • How Many Will Lose Health Insurance Because of SCHIP Expansion?

    State Children’s Health Insurance Program (SCHIP) is the federal-state welfare program to provide health insurance for poor children. The House recently passed a major expansion of SCHIP, which is now under consideration in the Senate. Most of the controversy surrounding this expansion has been related to eligibility. Nobody opposes health care for poor children, but the House has removed two critical requirements. First, they removed the requirement to be poor. Second, they removed the requirement to be a child. That’s right – the bill allows states to raise the income limit (originally twice the federal poverty level), and extends “waivers” granted to several states to cover adults under this “children’s” program.

    There is substantial evidence that expanding SCHIP insures some previously uninsured children, but also induces people to drop employer-sponsored private health insurance, and take SCHIP instead. Independent estimates by Jonathan Gruber and Kosali Simon in the Journal of Health Economics, March 2008 conclude that approximately 60% of the increase in SCHIP coverage during 1996-2002 came from families that dropped the private health insurance they already had when they became eligible for SCHIP.

    This means people who were already insured on their own are now getting health care at taxpayer expense. Taxpayers who were sold a program on the basis that it would cover poor, uninsured children are now also paying for children who were insured before through their parents’ employers – and that’s more than half of the total.

    What we don’t know is the level of collateral damage — how many people actually become uninsured because of SCHIP. How could that happen? Well, suppose an employer has a lot of employees with income low enough that they qualify for SCHIP. When the employees choose SCHIP, they no longer demand – or even accept – health insurance from their employer for their children. They might even drop insurance on themselves and save the “employee share” of the premium, if they were buying in only to make sure their children were covered. If enough employees drop the employer-sponsored insurance, the employer might choose – or be compelled – to drop insurance for all their employers. Most insurance plans require a minimum participation rate (usually 75% of employees).

    It’s quite possible that for many employers, more than 25% – but less than 100% – of their employees are eligible for SCHIP.

    If more than 25% of the employees choose SCHIP, the employees not eligible for SCHIP – including their families – will be forced to join the ranks of the uninsured.

    Posted in Economics [slideshow_deploy]

    17 Responses to How Many Will Lose Health Insurance Because of SCHIP Expansion?

    1. Ozzy6900, CT (The Bl says:

      "State Children’s Health Insurance Program (SCHIP) is the federal-state welfare program to provide health insurance for poor children."

      In case it isn't clear, let me explain:

      FEDERAL-STATE WELFARE PROGRAM

      Need I say anymore!

    2. Delfin J Beltran MD says:

      Thanks for the SCHIP article. Social Security was originally criticized as the camel getting his nose under the tent. It has now been identified as the biggest Ponzi scheme in history. The proposed addition of the single payer healthcare is a similar situation. Payment by taxes for healthcare will continue to be dumped into the general slush fund to buy more votes and private industry until nothing is anymore a private piece of property, it will all fall under one or another political schemes to bring the ownership of this country into the central government pot. I find it interesting that the conversation regarding the centrol transportation corridor from Mexico to Canada has left the visible screen along with talk of forming the north american state and the single currency. It isn't necessary to discuss these questionable projects as the congrss just writes new laws removing the right of free speech, private property and individual rights. Once these are captured it will be too late to say nay to the rest of the government capture of our private lives as there will no longer be any venue to discuss the problem. This SCHIP already expands the control of life from birth to middle twenties. That leaves only 23 to 65 for the political slaves to generate income to pay for forty five years of expected life. Now if that isn't a return to the slave state then Obama ain't black.

    3. Denis, New Hampshire says:

      So this is how the dems are going to force us into national health care!!!!! Nobody is talking about this, at least I have haven't heard it.

    4. John Hyland, Appleto says:

      Since when is $88,000 considered poor. Maybe in SanFrancisco or Manhattan, but nowhere else. This is crazy. More socialism. Or should we call it Pelosism or Obamaism.

    5. JJSMSL in vt says:

      I work hard, make kind of decent money, enough to get by and have a little fun sometimes. I watch people that live in my town, on welfare. They dont HAVE to work, They dont HAVE to scrimp and save and learn to make ends meet, they dont HAVE to sacrifice! They get EVERYTHING handed to them, They get free housing, or a minimal amount they have to pay for rent, which includes their utilities, so they dont conserve electricity or heat ( where are the environmentalist here?) They get so much food stamp money it is sickening, they dont even care about sales or couponing. Most of them smoke and drink , i gave up smoking 12 years ago, I COULDNT afford it! They have cable television ( i had to cut my programming to an affordable amount), cell phones they text message incesently which is extra not your basic plan that I have because that is what i can afford. I have a tooth i need fixed and I have to save my money to pay for it or it doesnt get fixed, they get free dental!!! they get free medical, free lunch at school, free summer camp free daycare! I cant stand it anymore!!! It is such a smack in the face to working americans.my daughter and her husband work their butts off to save and save and build a life, the majority of her friends got pregant and LIVE WITH thier boyfriend dujour and collect welfare, what a sickening discrace. I may have to cancel my health isurance because the rates are outrageous and it is becoming pointless to have it, but i do not qualify FOR ANYTHING FREE BECAUSE I WORK!!!!!!!!!!!!!!!!!!!!!NO free medical, no food stamps no wic, no free or subsidised housing!!!!!!!!!!!oh and they are getting a raise in thier foodstamp amounts becuase of the cost of food has increased so much, gues what i got for a raise this year because the economy is so bad? ZERO!!!!!!!!!!!!!!!!! i got a pay freeze because there is no money in my company for a raise this year, i have to learn to live on less but not the welfare crowd.

    6. Michael, New Hampshi says:

      I guess the horror of thinking about what the democrats and Obama are going to do and the sinking in our stomachs as we realize the terrible reality that we just lost our country are really different sensations entirely. Part of me has been wanting to believe that this would all go away and things would go back to normal, like waking from a bad dream. I guess not. The most frightening aspect is that once our government puts these programs into place, there is no way that we will ever be able to get rid of them, and will have to pay whether we want to or not. At best this seems like tyranny, and at worst slavery. Maybe a little bit of both.

    7. Tonya, Oklahoma says:

      Wow. I'm not opposed to poor "children" having access to healthcare. In this great country, it's the right thing to do. However, I'm very opposed to how the Democrats intend to make us dependent on government. I agree that there are some things that need fixing but not to the extent that Obama wants us to believe. There are a lot more things right with our country then there are wrong. I feel like people are being brainwashed. I hope our Republican Senators and Representatives don't cave. I would like to think that there still may be a few sane Democrats that will see this for what it is and vote accordingly. And, I pray, that in 2010, that these "in the middle" or "Independent" voters who determine the outcome of elections, wake up and save this country.

    8. Jay - Arlington, VA says:

      This is not an issue of health care, this is an issue of individual responsibility!!!! The left is using the lighten-rod title of health care because we Americans are generally good, caring compasionate people. How many times have we heard of millions of people who don't have access to health care??? Not one of those people is barred from the American health care system because of our medical regulations they can all be treated for free (at the cost of those of use who "have access"). As a result, medical costs must include the projected free care that our system must provide which drives up costs significantly. Then those people who have take responsibility for our well being and health care expenses already pay for those who do not. If we want to reform the health care system treat it like any other consumer service, no pay – no play… None of us can walk into ANY other business and demand their services or goods for free and expect the provider to have to prove for us!!!!! There is not one example around the world where socialized medicine is providing the innovation and advancement our "broken" system provides. We through our broken cost structure fund virtually all of the medical researc, advancement and charity care around the world already. We need to stop this march toward health care reform that will irrevokably harm our country and destroy our society as we have known it for 200+ years!!!! Unfortuantely our Republican leaders have lost their leadership and intestenial fortitute to do what is right for the country. For a decade the Republicans who we elected on a ticket of reduced governement and lower spending, turned into drunken democrats stumbling from inflated budget to inflated budget year after year. While they had control of the legistature they allowed the Democrats to control the message, tone and direction to accomodate and for the sake of bi-partisianship. I believe Ms. Pelosi has provided us an education recently that we should learn and adopt quickly when she said "We won the election, we win the bill." I wish the Republicans would have utilized the same approach to push through better judges/courts which have proved to be the single best friend of the liberal left. They should have pushed through, english as the national language, line-item veto, personal responsibility (health care reform), secure borders and a host of other issues that are now lost.

    9. Judith from Detroit says:

      Two questions:

      I heard the "children's age limit was raised from 23 to 30! I cannot find info on this. Does anyone know?

      If private insurance companies are marginalized and probably forced out of business, what becomes of the millions of insurance co. employees who will be out of a job? No one has talked about this. Will they have to go on welfare and be the receivers of all of the government freebies? How much more money will this cost?

      The vicious cycle has begun.

    10. Marnie, RN Georgia says:

      The scary thing for me is that SCHIP doesn't reimburse enough to keep hospitals open. I work for a non-profit children's hospital that more than 55% of our patrons are SCHIP patients. Fact is, the reimbursement rate does not cover our expenses.

      Seems like we are going to be one step closer to Socialism. Scary.

    11. Rob, St Paul says:

      I just love watching people get so up in arms over health care for children – but I hear nothing about the Socialist Medicare program.

      When will we finally go after and abolish Medicare?!?

      If you support Medicare you support a Socialist Healthcare plan!

      Can I get some agreement that along with refuting SCHIP we can finally start making plans to get rid of Medicare?

    12. Martha, Houston says:

      Rob-

      Medicare is not a socialist program! We pay a medicare tax through payroll deduction every payday. The seniors who recieve it have paid for it! Medicaide on the other hand is the "Freebee" for the poor.

    13. Mike, Hickory, NC says:

      How many (people) will lose health insurance because of SCHIP expansion?

      The Socialist Left doesn't care, as long as they get away with yet another government take-over of both private business and our private lives, in this case through our health care, by any and all devious ploys possible, of which SCHIP is only one, and any "expansion" of it is only more of the same verifiably devious ploy (Exmaples: Since when are families with an $80,000.00 annual income "poor", and since when are post-teen or even 30-year-olds such "poor children"?)

    14. Dennis Bradshaw, Ida says:

      I have paid into Social Security for more than forty years and Medicare from it's beginning. But both are bankrupt because of the Entitlements that have been added. People that have paid in nothing yet have reaped all the benefits. When the time comes that I need some medical help I will be too old and worthless and the socialized medicine will not help. I paid those taxes because I had no choice. I have paid for my own medical expenses therefore I have tried to take good care of myself. Personal responsibility can not & must not ever be replaced by government supervision of our private lives.

    15. joe s, douglassville says:

      Im sickened. Our America as we know it is vanishing. Im concerned as to what my new income tax rate is going to be after all this falls out. I have kids and a mortgage to think about. Less government = big Liberty. Once again , Im sick.

    16. debbie, new york says:

      I'll tell you about a family I know who receive SCHIP. They work off the books, drive two brand new cars, live in an expensive suburb, have a built in pool and just added an extension onto their house. This is insane! These programs are a huge burden on the American taxpayer. I pay for my health insurance. Whatever happened to individual responsibility??? Whose looking into the fraud???

    17. ING Annuities says:

      How many (people) will lose health insurance because of SCHIP expansion? The Socialist Left doesn’t care, as long as they get away with yet another …

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