PA Senate budget would cut children's health insurance

The budget plan passed by the Pennsylvania Senate in early May would mean 12,000 fewer children would be covered by health insurance in the 2009-10 fiscal year.

At a May 27th news conference, Insurance Commissioner Joel Ario described the impact of the Senate's plan to cut nearly $8 million from the amount proposed earlier this spring by Governor Ed Rendell for the Children's Health Insurance Program (CHIP).

The funds cut from the Governor's budget would be matched by similar cuts at the federal level, said Ario.  Thus, the total impact of the Senate plan would be a decrease of approximately $16.7 million, affecting almost 12,000 children.

Currently around 195,000 children are enrolled in CHIP.  The Governor's plan would take that up over 200,000 by June 2010.  If the Senate plan were to be implemented, enrollment would need to drop back down closer to 190,000.

"With the economy as it is, many children now enrolled in CHIP come to us because their parents have lost their jobs and benefits.  CHIP offers families a safety net to help them through the toughest of times," said Ario.

"Parents regularly tell us of the difference CHIP has made in their families' lives.  They tell how grateful they are for the peace of mind that comes from knowing their children have access to such great benefits.  They tell us their kids are growing up healthy because of CHIP."   

The PA House has not yet passed a budget bill but has been holding hearings on the impact of cuts on Pennsylvania families, communities, and institutions.  Still unknown is whether it will propose a tax increase to provide the revenue necessary to avoid some  of the cuts.  Among the proposals under consideration is a severance tax on natural gas extraction, an excise tax on smokeless tobacco and other untaxed tobacco products, and an increase in the personal income tax.