Although Hawaii has a high rate of children with health insurance, this is the wrong time to think of dropping a program such as Hawaii's Keiki Care, designed to provide free insurance to all children, says Jennifer Sullivan, Families USA senior health policy analyst.

Aid Agencies Fear State Budget Cuts

 

The State Health Department has scheduled a meeting to talk about budget cuts. Private, non profit agencies using money from state government fear they could be harder hit than the rest of state government.

 

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  Sullivan, the author of a new report on uninsured children by the national organization for health care consumers, said yesterday by telephone it's “;really unfortunate”; that Gov. Linda Lingle's administration stopped funding the innovative Keiki Care program last month.

The Families USA report lists Hawaii with 18,000 uninsured children - fifth-lowest rate in the nation at 5.8 percent - based on Census Bureau data for 2005 to 2007. Massachusetts had the lowest rate at 4.6 percent. (According to figures provided by the Hawaii Covering Kids project, 4.9 percent of Hawaii's 305,000 kids were uninsured in the last calendar year).

  Nationally, 8.6 million children, or 1 out of 9, were uninsured in the three-year period covered by the report: “;Left Behind: America's Uninsured Children.”;

“;We're hoping if Congress is able to quickly pass in January increased federal support for Medicaid and reauthorize the Children's Health Insurance Program (due to expire March 31), that will funnel enough new money into Hawaii that it might rethink the cutting of that (Keiki Care) program,”; Sullivan said. “;It's absolutely the worst time to be cutting a program that's new and providing coverage to kids who have absolutely no other place to get it.”;

In a teleconference yesterday, Ron Pollack, Families USA executive director, said his organization will meet with President-elect Barack Obama's transition team next week to discuss extension and expansion of the children's insurance program and changes that would loosen restrictions on participation of legal immigrants.

President Bush vetoed legislation last year to renew and improve the program.

  Most of the nation's uninsured children are in low-income working families - 88.2 percent or 8 out of 9, Pollack said. More than two-thirds, 68.5 percent, live in households where one family member works full-time.

“;It would really be harmful if the federal government did not boost funding for the program,”; he said, pointing to the deteriorating economy, job layoffs and ballooning numbers of people without health coverage. Unless something is done, he said, “;We are going to see a significant increase in the number of uninsured children.”;

  State legislators and Keiki Care supporters met yesterday at the Capitol to look for alternatives to the program, which the state began April 1 with the Hawaii Medical Service Association under a 2007 law. Ending Keiki Care leaves Illinois as the only state with universal coverage for all children.

Hawaii's pilot program was intended to cover immigrants and low-income families who can't qualify for state QUEST or Medicaid health insurance, with costs divided between the state and HMSA.

  In halting state funding for the program last month, the administration said it had flaws and didn't meet the goal - claims disputed by those involved with the program.

The administration suggested the program wasn't necessary because eligibility has been expanded for Medicaid so families earning up to 300 percent of the federal poverty level ($73,000 annually for a family of four) can qualify for free health care.

HMSA said it would continue the Keiki Care program until the end of December, then parents who don't qualify for QUEST or Medicaid can purchase coverage from HMSA for $55 per month per child (what the state was paying).

Barbara Luksch, director of the Hawaii Covering Kids Project, believes many of the 2,021 children in Keiki Care will become uninsured. 

Report says family burden of health care is growing

A new report released by Families USA points to a “;disheartening trend”; in Hawaii.

“;Over the last eight years, Hawaii's working families have seen their health care costs go up faster than their earnings,”; according to the report. “;As a result, the cost of health insurance premiums now imposes a greater burden on family budgets than ever before.”;

If this trend continues, “;more and more families will inevitably join the ranks of the uninsured and underinsured and residents of Hawaii will face diminishing economic and health security,”; according to the report released yesterday.

“;This crisis will only worsen until there is leadership in Washington, D.C., and in the states that takes decisive and meaningful action to make health care truly affordable and accessible to all.”;

Among key findings for Hawaii from 2000 to 2007:

» Health insurance premiums for working families increased 65.4 percent in eight years.

» The average annual premium for family health coverage (employer and worker share combined), rose from $6,047 to $10,001.

» The employer's portion of annual premiums for family health coverage rose to $7,371 from $4,735 while the worker's share rose to $2,630 from $1,311.

» The average annual premium for individual health coverage (employee and worker share combined) rose to $3,765 from $2,366.

» Median earnings of Hawaii's workers from 2000 to 2007 increased from $26,180 to $31,252, or 19.4 percent.

» Health insurance premiums for Hawaii families rose 3.4 times faster than median earnings.