Arizona moves to expand health insurance to children

A new bill would restore publicly funded health coverage for low-income families, called KidsCare

Insurance News

By Lyle Adriano

On Feb. 9, Arizona lawmakers deliberated over restoring publicly-funded health insurance coverage for low-income families. In particular, state officials considered House Bill 2309, which would resume sign-ups for the child-centered KidsCare health insurance program for low-income households.

Previously, the state halted KidsCare enrollment in 2010 due to budget cuts in the wake of the Great Recession. In 2014, the state discontinued KidsCare, encouraging families to get coverage under the Affordable Care Act’s federal marketplace or through Medicaid’s expansion.

Over 26,000 children secured health insurance through Medicaid’s expansion in 2014, advocates said. On the other hand, 14,000 KidsCare children were sent to the federal marketplace purchase subsidized plans that many found too costly.

Currently, KidsCare still covers fewer than 750 children who enrolled before the 201 budget cuts. Those children will be excluded from the program once they become adults.

House Bill 2309, proposed by Regina Cobb, R-Kingman, would permit program administrators to collect reasonable co-payments from households that earn less than 150% of the federal poverty level. Families earning more than 150% would also be assessed for co-payments, but would pay small insurance premiums.

The bill would also restore KidsCare eligibility for households earning about 138 to 200% of the federal poverty level; approximately $33,500 to $48,500 for a family of four. The bill also has a provision wherein those eligible families that earn less would retain their Medicaid coverage.

A survey published Feb. 9 by the Centers for Disease Control and Prevention found that Arizona's uninsured rate among children in 2015 was 13.2%—the highest rate of uninsured children among 17 states. The survey noted that Arizona’s uninsured rate for children was almost three times more than the national average.
 

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