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Senate passes bill restoring 12-month eligibility for CHIP program participants
May 26, 2005

A measure restoring a 12-month eligibility period for children enrolled in the Children's Health Insurance Program passed the state Senate late Tuesday.

Written by John Reynolds, Avalanche-Journal

A measure restoring a 12-month eligibility period for children enrolled in the Children's Health Insurance Program passed the state Senate late Tuesday.

The change was sought by child health advocates who argue the current six-month eligibility period has contributed to the precipitous decline in CHIP enrollment since September 2003.

While still too early to tell if the provision will become law, "it was certainly significant to have a record vote on it," said Anne Dunkelberg, assistant director of the Austin-based Center for Public Policy Priorities, a think tank specializing in issues affecting low-income Texans. Sen. Kip Averitt, R-Waco, inserted the language into a revenue bill that was being considered and later passed by the Senate.

The legislation, House Bill 3540, originated in the House, which must now decide whether to concur with the added language. If House members disagree, a conference committee would have to work out any differences.

Another potential stumbling block is Senate Bill 1863, which contains language that would make the six-month eligibility period permanent.

In 2003, lawmakers faced with a $10 billion budget shortfall made a series of cuts to social services and higher education, among others, to balance the budget without raising taxes.

CHIP is a joint federal-state low insurance program aimed at children of families who earn too much to enter Medicaid and not enough to purchase private insurance.

Legislators halved the program's eligibility period to six months, stripped dental and vision coverage, created a 90-day waiting period for coverage to begin and instituted an asset test.

Since the changes went into effect, CHIP enrollment declined from 507,259 in September 2003 to 326,809 this month.

Budget writers already have reinstated dental and vision coverage this legislative session, which ends Monday.

Averitt said extending the eligibility period would cost between $41 million and $45 million and enroll as many as an extra 86,000 children.

"I know families will be thrilled" if the eligibility rules are changed, said Deborah Suarez of the West Texas CHIP Coalition.

Suarez works with CHIP families when they re-enroll in the program.

The eligibility period is "mentioned all the time," she said. "I have families tell me they're not going to mess with it and go with work insurance even though it's a lot more expensive."

In the 15-county area around Lubbock, 5,163 children are enrolled in CHIP, down from 5,614 in October, she said.

"I bet we'll see our numbers go up" with 12-month eligibility, she said.

Rep. Carl Isett, R-Lubbock, defended the shorter eligibility period as necessary to get unqualified families off CHIP more quickly. Gov. Rick Perry has made similar arguments in recent months.

The fact that a smaller eligibility period saved more than $40 million indicated to Isett that some families are taking advantage of the system.

He didn't buy the argument that shorter eligibility cycles discourage qualified families from re-enrolling.

"If people have to expend a little bit of effort to get something of value, I'm in favor of it," he said.

Slaton resident Lorrie Graves lost CHIP coverage last year for her daughter, Brianna, when the re-enrollment papers arrived at their home while Brianna was in Dallas getting treatment for complications from a chronic bone ailment.

Without CHIP coverage, Graves was unable to get a therapist to help her daughter recuperate.

Although Brianna has made strong progress and was able to attend the final two weeks of school, her mother said a longer eligibility period would help tremendously.

It would mean that "I don't have to have that paperwork in every six months," she said. "We have peace of mind for a year."

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