Illinois Gov. Blagojevich Signs Legislation To Expand Children’s Health Insurance
Illinois Gov. Rod Blagojevich (D) on Tuesday signed a bill that will establish a program to extend health coverage to all uninsured children in the state, the AP/Chicago Tribune reports. Blagojevich said that Illinois has about 253,000 uninsured children, about half of whom qualify for current state health insurance programs for low-income families but are not enrolled (Kelly Lannan, AP/Chicago Tribune, 11/15). Under the All Kids program, which the state Legislature approved late last month, parents of uninsured children would pay a monthly income-based premium that in most cases would cost less than private health insurance (Kaiser Daily Health Policy Report, 10/28). Blagojevich estimated that the program, which will begin on July 1, 2006, will cost about $45 million in the first year (Davey, New York Times, 11/16). He hopes to enroll 50,000 children in the program in the first year (McKinney, Chicago Sun-Times, 11/16). Blagojevich has proposed to shift 1.6 million beneficiaries enrolled in KidCare, FamilyCare and traditional Medicaid to a managed care system for an estimated savings of $56 million in the first year to fund All Kids. By the fifth year, Blagojevich said that he expects enrollment of 204,000 children in All Kids at an annual cost of $96 million, in comparison with savings of $93 million from the shift to a managed care system in other state health insurance programs (Kaiser Daily Health Policy Report, 10/28).
Program Fees
Under All Kids, families of four with annual incomes higher than the federal poverty level will pay monthly premiums, copayments for physician office visits and in some cases a percentage of prescription drug costs (Chicago Sun-Times, 11/6). The program does not require copays for immunizations and other preventive care physician visits. In addition, the program does not require copays for vision, hearing, development and preventive dental tests. Under the program:
- Families of four with annual household incomes between $40,000 and $60,000 will pay $10 copays for physician office visits and a $40 monthly premium for one child (Office of the Governor release, 11/15). In such families with two or more children, monthly premiums will total $80.
- Families with annual household incomes between $60,000 and $79,000 will pay $15 copays for physician office visits and a $70 monthly premium for one child or a $140 monthly premium for two or more children (New York Times, 11/16).
- Families with annual household incomes between $80,000 and $99,000 will pay $20 copays for physician office visits and a $100 monthly premium per child. In addition, such families will pay 15% of prescription drug costs (Chicago Sun-Times, 11/6).
Families with higher annual household incomes also quality for the program, but premiums "increase significantly," the Times reports (New York Times, 11/16). The highest rate is a $300 monthly premium per child for families with annual household incomes of more than $160,000 (Chicago Sun-Times, 11/6). At the start of the program, children will have to have lacked health insurance since Jan. 1, 2006 to qualify; in later years, children will have to have lacked coverage for at least one year prior to enrollment (New York Times, 11/16). Under the program, families will select a primary care provider from a list compiled by the state Department of Health Care and Family Services (Chicago Sun-Times, 11/6).
Comments
Blagojevich said, "It's about time that the middle class get some help and the working class get some help." He added, "Our kids come first, and what's the most important thing for kids? That they're safe and healthy." However, opponents have raised concerns about the cost of All Kids. State Sen. Peter Roskam (R) said, "I think it's a landmark that's going to turn into a shipwreck" (New York Times, 11/16). Alan Weil, executive director of the National Academy for State Health Policy, said that officials in other states likely will monitor All Kids. "There is broad interest in covering kids, and there will be interest in following Illinois if the story there turns out to be good," he said (New York Times, 11/16).