More Than 54,000 Texas Children Lost CHIP Program Coverage This Year, Report Says

More than 54,000 children have lost coverage under Texas' CHIP program this year, in large part because of stricter eligibility limits passed by the state Legislature, according to a report released Tuesday by the Center for Public Policy Priorities, the Houston Chronicle reports (Ross Hughes, Houston Chronicle, 11/12). Under the fiscal year 2004 budget, passed by the Legislature earlier this year, funding for the state's CHIP program was reduced by $299 million. The budget also calls for new asset tests, stricter income requirements and a 90-day waiting period before participants can enroll in the program. Texas also has increased premiums and copayments and decreased benefits under CHIP (Kaiser Daily Health Policy Report, 10/3). According to the report, CHIP program enrollment between June 1 and Nov. 1 decreased 11% from 512,986 beneficiaries to 458,166 beneficiaries. According to the Center for Public Policy Priorities, 49,000 of the children who would have been enrolled in the program are not because of the policy changes. According to the report, about 16,800 children lost CHIP coverage because families must now report gross income and can no longer deduct expenses such as child support and child care when applying for the program (Houston Chronicle, 11/12). Anne Dunkelberg, health policy analyst at the center, said, "The bottom line is, in 2005 the program's projected to be serving more than 30% fewer children. And that means more uninsured children" (Garrett, Dallas Morning News, 11/12). Kristie Zamrazil, spokesperson for the state Health and Human Services Commission, said, "Overall, the '04-'05 budget projects a decrease in caseloads largely based on the eligibility check every six months, which ensures that families who are enrolled in CHIP meet the eligibility requirements." Dunkelberg said that she expects another "sharp drop" in CHIP enrollment around March, reflecting a new asset test that takes effect in January, according to the Chronicle. That test requires that families with annual incomes above 150% of the federal poverty level -- $27,600 for a family of three -- have assets totaling no more than $5,000 to be eligible for CHIP. Assets include any funds in checking or savings accounts, as well as certain values on vehicles, according to the Chronicle (Houston Chronicle, 11/12).