80th Legislature: CHIP Is Restored, But Not Fully

House Bill 109, which will restore 102,000 children to the rolls of the Children’s Health Insurance Program passed the House yesterday, 120-16.

While Democrats were successful in heading off Republican amendments that would have helped keep intact the “permanent wall” keeping kids from program, such as the six-month eligibility standard and a 90-day waiting period, House Republicans managed to thwart amendments which would have fully restored the 250,000 kids kicked off the program since 2003.

Nonetheless, it remains a victory for Democrats given that Republicans are still anti-CHIP and likely only supported the bill on final passage because they’ve seen how CHIP votes have caused members of their caucus to fall in general elections.

Lots of Democrats released statements on the passage today. Garnet Coleman (D-Houston):

“The reason this bill passed today is because Democrats across the state pointed out the heartless and immoral nature of the 2003 cuts and we have kept that issue alive ever since,” said Rep. Garnet Coleman (D-Houston).

“After the Republican leadership took two steps backward and slashed children’s health insurance in 2003, Democrats fought hard to make sure that we took one step forward today.”

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“I like progress, because I’m a progressive, and HB 109 is progress. We took an excellent first step today by restoring CHIP coverage to 102,000 Texas children.

I’m proud of the work done by Rep. Turner, Speaker Craddick, Chairman Davis, Chairman Rose, and others on this bill — and I trust that they will fight for this bill to stay in its form as it goes through the Senate.

The next step will be for Lieutenant Governor Dewhurst and the Texas Senate to maintain CHIP restoration as it passed out of the House. Governor Dewhurst has said this is the ’session of the children.’ Now we get to see if he means it.”

House Democratic Leader Jim Dunnam:

“Repealing the assets test would have ensured we don’t punish families for something as simple as saving money for college,” House Democratic Leader Jim Dunnam (D-Waco)
said. “Our work to fully restore CHIP isn’t finished, but we’ve taken an important first step with today’s passage of HB 109.”

Rep. Pege Gallego (D-Alpine):

“Our children shouldn’t have to suffer through a painful procedure because the state is too cheap to pay for the anesthesia,” Rep. Pete Gallego (D-Alpine) said. “My hope is that, when the bill goes to the Senate, Governor Dewhurst will add the anesthesia coverage and maintain the other important restorations within the legislation.”

Rep. Veronica Gonzales:

“HB 109 makes many necessary improvements to CHIP to restore valuable healthcare coverage to our State’s most vulnerable – our children,” said Rep. Gonzales.  22% of Texas children lack health coverage compared to the overall 12% of uninsured children in the nation.

Due to the cuts in CHIP enrollment, $893 million in federal matching funds have been returned to the U.S. Federal Treasury and spent on other states. “With HB 109, taxpayers’ hard-earned money stays in Texas instead of being lost to other states,” said Gonzales.  Texas receives $1.54 in federal funding for every dollar that the state spends in Medicaid but receives $2.64 in federal funding for every dollar that the state spends in CHIP.  Gonzales added, “Increasing enrollment not only adds up to healthier children, but a healthier return in federal funds.”

“HB 109 is a step in the right direction to improving health care coverage for Texas children,” said Gonzales.  The bill brings many of the children currently without any coverage back into CHIP.   The bill changes eligibility to be based on net family income instead of gross family income and allows child-care expenses to be deducted in calculating income eligibility as well as increases the liquid assets to $10,000 and the exemptions for primary and subsequent vehicles.

“Working families are caught in a catch-22 with the restrictions on the current asset test,” said Gonzales.  “They are told to be more financially independent, but at the same time there is no consideration for working families who earn too much to qualify for Medicaid, but still cannot afford private health insurance.”

HB 109 provides for 12 month continuous eligibility with income verification and eliminates the 90 day waiting period except in limited cases.

“Common sense policies – like reducing paperwork, deducting child care costs when determining eligibility and not counting families’ savings against them – will ensure that more of our children receive health care,” Rep. Gonzales said. “We’ve heard it time again, children are an asset to our State; a healthy child is a successful child.”

Rep. Eddie Rodriguez (D-Austin):

“Making more children eligible for CHIP is not only socially responsible but is also fiscally responsible,” said Rodriguez. “Texas children who do not have health insurance are currently being served at our emergency rooms at the expense of taxpayers.”

A nationally-recognized economist has calculated that for every $1 in state funds cut in CHIP and Medicaid, Texas’ businesses pay out-of-pocket increases in taxes and insurance, and each Texan’s health insurance premiums increase by $1.34.  Additionally, statistic show that uninsured children are 25 percent more likely to miss school, and Texas school districts lose $4 million per day in state funding because of absenteeism. Reducing the number of uninsured kids helps control our local school taxes.

“If we continue to ignore the health care of Texas children, then we run the risk of failing an entire generation of Texas kids,” said Rodriguez.  “Texas is in the disturbing position of leading the nation with 1.4 million children who do not have health insurance.”

“Our goal should be to provide quality affordable health care for our children,” said Rodriguez.  “It is clear that making more children eligible for health insurance is the right investment for today and will reap a better tomorrow.”

Rodriguez noted, “while we made progress, I’m disappointed by the House leadership’s failure to adopt an offered amendment to fully restore CHIP, thereby adding over 200,000 kids back into the program.  It’s heartbreaking to deny any eligible child access to health insurance.”

And, primary author Speaker Pro Tem Sylvester Turner (D-Houston):

“Today was a victory for the working poor. The House has shown its support for ensuring the well-being of our children and it’s now up to the Senate to do the same,” stated Rep. Turner. “All the time and effort that went into drafting this legislation and working on a bi-partisan compromise with Chairman John Davis, Chairman Patrick Rose, and my fellow joint authors, has always been about the children.”

HB 109 addresses key policy changes to the current Children’s Health Insurance Program (CHIP) which will insure approximately 102,224 qualified children per month in the State of Texas by the end of fiscal year 2009.  Representative Turner allowed the bill to stay true to its original intent by keeping the provisions that extend the period of eligibility to twelve months and eliminate a 90-day waiting period for children not previously covered by some type of insurance. As passed, HB 109 protects taxpayers by maintaining and revising the asset and verification tests to increase the limit of allowable liquid assets and vehicle amounts.

HB 109 will now be placed on the Major State Calendar for a third reading where Rep. Turner hopes it will once again be voted on favorably and passed out to the Senate for their consideration.

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