DES MOINES, Iowa: The cost of the children’s health insurance program in Iowa is set to soar from $7 million to $37 million over the next two years because of changes approved by Congress that reduce federal funding.
The Healthy and Well Kids in Iowa program provides health insurance to 70,000 children from families with moderate income, The Des Moines Register reported.
HAWK-I is offered through the national Children’s Health Insurance Program, known as CHIP, which started in 1997 under President Bill Clinton. A family of four qualifies with an annual income of about $42,000 to $76,000.
Congress decided in January not to reverse a scheduled phase-out of extra federal financing for children’s health insurance programs, which had been part of the Affordable Care Act.
As a result, state lawmakers will have to find funds to keep the program running. The state’s share of the cost for HAWK-I will increase from 5 percent this fiscal year to 24 percent in two fiscal years, according to the Iowa Department of Human Services.
“There’s no doubt Iowa will feel that in its budget,” said Anne Discher, executive director for the nonprofit Child and Family Policy Center of Iowa, which tracks legislation affecting children and families. “Having said that, CHIP remains a good deal for the state – and a lifeline for families who make too much to be eligible for Medicaid, but too little to afford private insurance.”
Federal law bans states from restricting eligibility in response to the funding cut, Discher said.
State lawmakers also face the challenge of finding more funds to support Medicaid, which is for poor and disabled residents. The state’s share of costs is projected to increase from about $1.37 billion to $1.48 billion in two years. AP
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