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GOVERNOR RENDELL
SIGNS HISTORIC ‘COVER ALL KIDS’ LEGISLATION
PENNSYLVANIA BECOMES ONE OF SIX STATES TO OFFER HEALTH CARE ACCESS
TO ALL UNINSURED CHILDREN
PITTSBURGH, 11/02/06– Governor Edward G. Rendell
today signed into law his Cover All Kids initiative, making Pennsylvania
one of six states to make sure that every child has health care
coverage.
“Living in the world’s most affluent society, it shocks
the conscience that any child should be forced to live without access
to basic medical care,” Governor Rendell said. “With
Cover All Kids, Pennsylvania parents will no longer need to make
the impossible choice between paying the rent and taking their child
to see a doctor.
“Cover All Kids will provide peace of mind to parents because
it offers a brighter, healthier future for our commonwealth’s
most treasured resource: our children,” Governor Rendell added.
“I thank the General Assembly for honoring its commitment
to Pennsylvania families by passing this significant bill.”
Under Cover All Kids, parents will be able to afford to insure their
children because the monthly premiums will be based on family income.
Currently, the Childrens’ Health Insurance Program –known
as CHIP – is free for children from families with annual incomes
under $40,000 (family of four – 200 percent of the federal
poverty level) and available at a reduced cost for children from
families with incomes up to $47,000 (family of four - 200 percent
- 235 percent of FPL).
Under Cover All Kids, 100 percent of the parents who currently cannot
afford to insure their children will get assistance from the state
to ensure that the cost of health insurance for their children is
reasonable.
Under the new law, the approximate monthly cost for parents is based
on a sliding scale:
• $36 a month per child for a family earning 200 percent –
250 percent of FPL (under $50,000 for a family of four)
• $50 a month per child for a family earning 250 percent -275
percent of FPL ($50,000- $55,000 for a family of four)
• $57 a month per child for a family earning 275 percent -
300 percent of FPL ($55,000-$60,000 for a family of four)
• Families that cannot find or afford private health insurance
for their children who are earning above 300 percent of the FPL
($60,000 a year for a family of four) can purchase the coverage
at the state cost, based on certain eligibility requirements. These
families must show that coverage was denied due to a pre-existing
condition, or that the cost of private coverage totals more than
10 percent of the family’s annual income, or that the cost
of private insurance is one and a half times (150 percent) more
than the state monthly per child cost for Cover All Kids.
If parents can buy employer-sponsored coverage for their children
but cannot afford the full premium, the state will help the family
to pay the premiums for private insurance, rather than enrolling
the child in CHIP – if the cost of private coverage is lower.
To discourage parents from canceling private coverage to take advantage
of the state subsidy, Cover All Kids has a waiting period that requires
families show that their child has not had coverage for the last
six months, unless the child is two years of age or less. The so-called
“go bare” period is not required for infants, for children
who have lost coverage because a parent lost a job or for kids who
are moving from another public insurance program.
The 2006-07 state budget includes $4.5 million for Cover All Kids,
which will be used to draw down additional federal funds. The bill
the Governor signed today allows the state to step up outreach for
existing programs for children, such as CHIP and Medicaid (MA),
to ensure every qualified child is enrolled.
Pennsylvania’s CHIP program is one of the most successful
children’s health insurance programs in the nation, covering
a record 148,355 children during October. CHIP was created under
legislation signed in late 1992 by Governor Robert P. Casey. The
program served as a model for a federal CHIP program enacted by
President Bill Clinton in 1997.
More information on the CHIP program can be found at www.chipcoverspakids.com
or by calling 1-800-986-KIDS.
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