APHA Objects to Tonight’s Return of $1.1 Billion in Children’s Health Insurance Funds to U.S. Treasury

Washington, D.C., September 30, 2004 -- “Tonight, $1.1 billion that was marked for state children’s health insurance programs will go back to the U.S. Treasury, leaving uninsured children in the lurch. That $1.1 billion equals the cost of providing health coverage for nearly 750,000 children. The American Public Health Association implores Congress to give the money back to the states.

“We don’t want the money to revert at all. America’s neediest children would be punished twice: first, because of the recession resulting in reductions in health care coverage and, second, because the dollars aren’t there to cover them in the future as the economy recovers. Studies project that six states will face federal funding shortfalls in fiscal 2005, with the number rising to 18 states by fiscal 2007. Under those projections, the number of children insured through the State Children’s Health Insurance Program (SCHIP) could fall by an unacceptable amount.”

“There are important negotiations on Capitol Hill seeking to remedy this problem. It is estimated that 8.4 million children are currently uninsured. The loss of this money will only worsen the crisis. Congress need not lose this opportunity to ensure that our nation’s children remain healthy.”