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Hawaii Cuts its Universal Child Health Care Program

Posted on: Friday, 17 October 2008, 11:11 CDT

Only seven months after Hawaii launched its state universal child health care program, the state’s governor announced it would be dropping the program due to economic shortfalls and other factors.

Gov. Linda Lingle's administration also cited other available health care options for eliminating funding for the program. A state official said families were dropping private coverage so their children would be eligible for the subsidized plan.

"People who were already able to afford health care began to stop paying for it so they could get it for free," said Dr. Kenny Fink, the administrator for Med-QUEST at the Department of Human Services. "I don't believe that was the intent of the program."

Coverage for the 2,000 children enrolled will end by Nov.1, however private partner Hawaii Medical Service Association will pay to extend their coverage through the end of the year without government support.

"We're very disappointed in the state's decision, and it came as a complete surprise to us," said Jennifer Diesman, a spokeswoman for HMSA, the state's largest health care provider. "We believe the program is working, and given Hawaii's economic uncertainty, we don't think now is the time to cut all funding for this kind of program."

The Keiki (child) Care program was approved in 2007 with the goal of covering every child from birth to 18 years old who didn't already have health insurance.

The program costs $25.50 per child – about $50,000 each month, which has been more than matched by HMSA.

The Republican governor signed Keiki Care into law in 2007, but it and many other government services are facing cuts as the state deals with a projected $900 million general fund shortfall by 2011.

"Children are a lot more vulnerable in terms of needing care," said Democratic Sen. Suzanne Chun Oakland. "It's not very good to try to be a leader and then renege on that commitment."

Families with children currently enrolled in the universal system are being encouraged to seek more comprehensive Medicaid coverage, which may be available to children in a family of four earning up to $73,000 annually.

These children also could sign up for the HMSA Children's Plan, which costs about $55 a month.

"Most of them won't be eligible for Medicaid, and that's why they were enrolled in Keiki Care," Diesman said. "It's the gap group that we're trying to ensure has coverage."

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On the Net:

• Hawaii Medical Service Association

Source: redOrbit Staff & Wire Reports

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