Nearly 100,000 Texas CHIP Beneficiaries No Longer Enrolled Because of Program Changes

Since budget cuts for the Texas CHIP program were approved last May, nearly 100,000 beneficiaries have left the program, the Dallas Morning News reports. As of this month, 416,302 children are enrolled in the program, compared with 513,742 last May -- a decline of about 19%, according to the Dallas Morning News (Garrett, Dallas Morning News, 1/13). 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 stricter income requirements and a 90-day waiting period before participants can enroll in the program. Texas also has increased CHIP premiums and copayments and decreased benefits (Kaiser Daily Health Policy Report, 11/13/03). The state also is restricting enrollment for children in families with assets exceeding $5,000 or cars exceeding "certain values" in a change set to take effect next month, the Morning News reports. By Sept. 1, 2005, state officials expect CHIP enrollment to decline by more than 160,000, the Morning News reports.

Reaction
The "sharply declining enrollment" has "sparked debate about whether the stricter rules" are too severe and will lead to an increase in uncompensated emergency care, according to the Morning News. Anne Dunkelberg, a health policy analyst at the Center for Public Policy Priorities, said the state should suspend the rules regarding assets in light of the declining enrollment. Dunkelberg has circulated an analysis indicating that the number of beneficiaries who have left CHIP is almost twice the number expected. However, Kristie Zamrazil, spokesperson for the state Health and Human Services Commission, which administers the CHIP program said the analysis appears "dated," adding that it is "unclear" if the loss of beneficiaries is greater than anticipated, according to the Morning News. Meanwhile, some lawmakers in the Texas Conservative Coalition maintain that the asset limits should be implemented as planned. John Colyandro, director of the group, said the rules are "common sense" and will eliminate beneficiaries who "should not be" in the program (Dallas Morning News, 1/13).