Massachusetts AG Files Brief Challenging President Bush’s Child Health Insurance Limits

April 09, 2008 -- BOSTON – Today, Massachusetts Attorney General Martha Coakley’s Office filed an amicus brief in the United States District Court for the District of New Jersey supporting New Jersey’s challenge to a new U.S. Department of Health and Human Services policy limiting the states’ ability to use federal money to fund health insurance for low-income children.

Sick baby: Photo by Melting Mama (CC)

The amicus brief argues that an August 17, 2007, letter sent from the Centers for Medicare & Medicaid Services (CMS) to all 50 states fundamentally altered the rules governing the State Children’s Health Insurance Programs (SCHIP) and effectively denies federally-funded health coverage to certain low-income children. The brief further states that CMS’s letter is invalid because the federal agency failed to adhere to federal rulemaking requirements.

“SCHIP has been a great success as a federal/state partnership, allowing Massachusetts to provide affordable health insurance to children of families making less than 300% of the federal poverty level,” said Attorney General Coakley. “With the stroke of a pen, the Bush administration is simply changing the rules and placing health insurance for low-income children into question.”

The brief, filed today by Attorney General Coakley and Connecticut Attorney General Richard Blumenthal supports a complaint filed by New Jersey challenging the August 17 letter as a violation of the Administrative Procedure Act.

“Massachusetts has a long and proud history of successfully enrolling low-income children in its SCHIP program. Our program covers more than 100,000 children,” said Secretary Bigby. “SCHIP is a critical component of the Commonwealth’s historical health care reform efforts. Massachusetts’ decision to join this lawsuit reflects our sincere belief that no health care reform strategy can be successful if low-income children face unreasonable barriers to coverage.”

In the letter, CMS informed states they would no longer receive federal reimbursement for children in families who earn between 250 and 300% of the federal poverty level, which is the equivalent of a family of four living off a yearly salary of $53,016, unless they meet several burdensome requirements. Families must show the following:

* Show that at least 95% of Massachusetts children below 200% of the federal poverty level who are eligible for SCHIP or Medicaid are enrolled;
* Show that the number of children in the target population who are insured through private, employer-sponsored plans has not decreased by more than two percent over the prior five-year period;
* Prevent employers from reducing their dependent coverage obligations; and
* Create a one-year waiting period for children before they can enroll in SCHIP.

Massachusettscurrently covers children in families up to 300% of the federal poverty level, a step that was taken as part of the state’s landmark health reform.

The amicus brief is being handled by Assistant Attorney General Emily Paradise and Division Chief Quentin Palfrey of Attorney General Coakley’s Health Care Division with assistance from mediator Alexis Prieur. Handling the matter for Executive Office of Health and Human Services is General Counsel Cynthia Young and First Deputy Counsel Judith Karp and John Hodge from the Office of Medicaid.

Source: Massachusetts Attorney General

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