Bush Administration To Cut Health Insurance For 18,000 in MN

For a long time, the Bush Administration has not been opposed to using federal funds for the State's Children's Health Insurance Program (SCHIP) in order to insure adults. With all the debating this year on the expansion of SCHIP to more people, the Administration exercised their power by making new rules that make it nearly impossible for states to expand their children's insurance programs.

States responded by suing the Bush Administration. Within their new 29-page SCHIP rule-book, reported the Minneapolis Star Tribune, the federal government will also cut Medicaid funding for families earning between 100 and 200 percent of the federal poverty level.

MinnesotaCare, which is Minnesota's SCHIP program, provides coverage for about 18,000 adults who fall into this range of income levels. So this is not good news for them. If there is no federal funding , the premiums will quadruple for these 18,000. Brian McClung, a spokesman for MN Governor Tim Pawlenty says, "A significant loss of federal funding would seriously jeopardize the state's ability to assist low-income residents in need of health insurance."

So why does MinnesotaCare allow parents to be covered in the first place? "We believe that by covering parents, you improve access for kids," said Minnesota's Medicaid director, Christine Bronson.

The Federal Centers for Medicare and Medicaid recently granted Minnesota a two week extension to work these things out. Otherwise, the cuts would be in effect presently. many people are keeping their fingers crossed.