Released: March 09, 2007

Kids face cutbacks in health coverage

Source: Richard Wolf, USA Today

A 10-year-old national program that has helped 6.6 million children get health insurance faces cutbacks here Sunday, and more states could follow unless Congress grants new funding.

Georgia’s PeachCare for Kids program, part of the national Children’s Health Insurance Program (CHIP), will freeze enrollment because of a federal funding shortfall that threatens 13 other states. New Jersey, Iowa, Mississippi and other states say cuts may be required later this year.

The program — which provides subsidized insurance for children whose families are not eligible for Medicaid — has helped trim the percentage of uninsured kids nationwide to 11.2% in 2005 from 15% in 1997. It is running out of money because of inflation, higher enrollment and program expansions.

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