February 10, 2010

Children to Lose Health Care Unless Congress Acts


Last year's federal stimulus package provided $87 billion in fiscal relief to states, helping them to prevent cuts to social service programs. This relief allowed states to continue to serve children, youth and families at a time of increased need and falling state revenues.

This assistance is scheduled to expire on December 31, 2010, in the middle of most states' fiscal years. Unfortunately, state revenues are not projected to increase in the coming fiscal year; in fact, states currently face shortfalls totaling $140 billion in fiscal year 2011. This means that without additional fiscal relief, states will have to institute massive new budget cuts and tax increases at the start of the new fiscal year on July 1, when unemployment is expected to remain at or near double-digit levels and the economy will likely still be fragile.

Contact your member of Congress today: (202) 224-3121.

Already Governors around the country are proposing severe cuts to programs benefiting children and families. For example: Arizona's governor is proposing a budget that would eliminate the state's children's health insurance program (KidsCare), which covers 47,000 children; Colorado's governor is proposing a delay in payments to Medicaid providers and cuts in payment rates; New York's governor is proposing more than $400 million in reduced payments to health care providers and about $100 million in other health-related cuts; and South Carolina's governor is proposing capping total enrollment in the state's children's health insurance program.

Contact your member of Congress today: (202) 224-3121.

Urge your representative to act now to avoid cuts in vital services to children, youth and families by extending the The Federal Medical Assistance Percentages (FMAP) and state fiscal stabilization assistance in the American Reinvestment and Recovery Act (ARRA). In addition, the FMAP extension should continue to apply to both Medicaid and Title IV-E (foster care), and the Maintenance of Effort (MOE) should be extended beyond Medicaid to include the Children's Heath Insurance Program (CHIP).

Contact your member of Congress today: (202) 224-3121.

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