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State Insurance Program (SCHIP)

MEDICAID EXPANSION OR STATE PROGRAM?
ISSUES TO CONSIDER

Assessing Current State Medicaid Program
Assessing Current State Children’s Health Insurance Activities
Assessing the Current Political Climate

States have a great deal of flexibility in implementing the State Children’s Health Insurance Program (SCHIP). They must decide whether to expand Medicaid, create or expand a state children’s health insurance program or do a combination of both. This document outlines the issues you should consider when deciding which approach your state should choose.

The most important step is to contact your governor’s office and the chairs of the health committees in your state legislature immediately to make sure that you are part of the process.

Despite concerns among pediatricians and beneficiaries, for many states expanding Medicaid will be the best option. The benefits package is comprehensive; there are significant patient protections; and administration will be the simplest because a system is already in place. However, it may not be the best approach in some states. You should assess your state’s Medicaid program, any existing state children’s health insurance program, and the current political climate in your state to determine which is the best approach. Refer to Comparison of Major State Options for State Children's Health Insurance Program for a discussion of the strengths and weaknesses of each approach.

Assessing Current State Medicaid Program

Eligibility
• What are the Current Medicaid eligibility levels for your state?

Administration
• Has your state recently undergone a shift to Medicaid managed care? If so, how has the transition gone?
• Is there adequate access to pediatricians?
• What kind of relationship do you have with the Medicaid administrators in your state?

Political Support
• Has your state expanded Medicaid in the past? If so, what was the opposition and who supported it? Would you expect the same opposition and support if your state chose to use the funds to expand Medicaid?
• Who are the "champions" for the Medicaid program in the state legislature and/or the governor’s office?
• In general, how is the Medicaid program perceived in your state by:

the general public?       members of your chapter?
the governor?       the medical society?
the legislature?       child advocates?
children’s hospitals?        

Assessing Current State Children’s Health Insurance Activities

Eligibility
• How much overlap is there with the SCHIP eligible population?

Benefits
• Is the benefits package comprehensive?
• Would it need to be expanded to meet SCHIP requirements?

Children with Special Health Care Needs
• Are there many children with special health care needs in the program?
• Are they able to get the services they need through this program?

Coordination with Medicaid
• How well does your state program coordinate enrollment with Medicaid? Are there many Medicaid eligible children enrolled in this program?
• Do participants shift regularly between enrollment in this program and enrollment Medicaid?
• Are the same income eligibility methods used as for Medicaid?
• Do the same pediatricians and other providers participate?

Cost Sharing
• Does your program include cost-sharing and will the structure need to be changed to meet the federal requirements?

Access
• Is there adequate participation by health plans and pediatricians
• Is there a waiting list for enrollment or has enrollment lagged behind predictions?

Patient Satisfaction
• Is there high patient satisfaction? Do patients prefer this program to Medicaid?

Patient Protections
• Is there an effective grievance process for patients and physicians?

Administration
• Has the program managed growth in enrollment and coverage area over time effectively?
• Do you have a good working relationship with the administrators?
• Is this program easier or more difficult for physicians and patients to work with?
• What kind of data collection and reporting is required?

Administrative Capacity
If your state does not have a children’s health insurance program:
• Is there a logical state agency for administering this program -- ex. a Department of Insurance, a state trust fund for uninsured residents, etc.?
• How effective is your state at creating and implementing new programs?

Assessing Current Political Climate

• Has the governor already made any statements regarding his or her intentions?
• In the last legislative session, did the governor and/or the state legislature propose any child health initiatives?
• Is there an approach -- Medicaid expansion, creation of a state health insurance program -- that has regularly failed in the state legislature?
• Is there strong anti-government sentiment in the state?
• Have any of the state’s business leaders made public comments in support or opposition to a particular approach.

For further information, please e-mail us at staccess@aap.org, or call us at 847/434-7799. Due to the complex nature of legislative issues, we request that you include your name, e-mail address, mailing address, phone number, and/or fax number in your e-mail correspondence, so that we may contact you for more information if necessary.





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