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GOVERNORS SPITZER AND SCHWARZENEGGER LEAD NATIONAL CHARGE TO ROLL BACK FEDERAL ATTEMPT TO DENY THOUSANDS OF CHILDREN HEALTH INSURANCE

In a letter to Michael O. Leavitt, Secretary of the U.S. Department of Health and Human Services, Governor Eliot Spitzer and Governor Arnold Schwarzenegger of California today announced that 28 additional governors have joined their effort to hold the Bush administration accountable for curtailing enterprising efforts by the states to provide thousands of children across the country with health insurance.

The national effort is in response to federal rule changes by the Centers for Medicare and Medicaid Services (CMS). On August 17, 2007, CMS altered the eligibility rules of the State Children’s Health Insurance Program (SCHIP), blocking the expansion of children’s health insurance in New York, as well as expansions of pending plans in 18 other states and the District of Columbia. The Governors called upon the federal government to rescind these rule changes and join efforts to reauthorize SCHIP this year.

“All across the country, states are standing up to fight for a program that provides a brighter, healthier future for our children,” said Governor Spitzer. “A bi-partisan effort achieved health insurance for all children in New York, but the President’s actions mean that 70,000 children will lose that coverage.”

Governor Arnold Schwarzenegger said: “We cannot roll back the clock on a program that has helped to ensure children who need it most have a healthy start in life. Protecting funding for this program is one of my highest priorities this year. With the power of the 30 governors who signed this letter - representing both sides of aisle - I know we can convince the federal government that saving SCHIP is the right thing to do.”

Joining California and New York were the Governors of Arkansas, Arizona, Colorado, Connecticut, Delaware, Illinois, Iowa, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New Mexico, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Vermont, Washington, West Virginia and Wyoming. The Governors of Puerto Rico and the U.S. Virgin Islands were also co-signers.

The letter to Secretary Leavitt emphasizes that the new federal requirements amount to a unilateral restriction on state authority to provide health insurance coverage for children and undermine the foundation of the state-federal partnership upon which SCHIP was built.

Under the new federal rules, states are required to:

• Prove that 95 percent of children below 200 percent of the poverty level were enrolled in Child Health Plus. No state has reached a 95 percent enrollment rate. New York has one of the highest participation rates – at 88 percent;

• Establish a waiting period during which a child must go without health insurance for 12 months – with no exceptions – before becoming eligible for SCHIP. New York’s plan did not require a child to go without health insurance for 12 months – with no exceptions – before becoming eligible for Child Health Plus; and

• Set co-premium requirements comparable to the private sector or as high as five percent of family income. New York’s co-premium requirements are comparable to amounts set by other states and previously approved by CMS.

Last week CMS rejected New York’s request to expand its eligibility for SCHIP, known in New York as Child Health Plus. Under the New York plan, approved by the State Legislature and signed by the Governor earlier this year, approximately 70,000 children would be provided access to health insurance.

A copy of the Governors’ letter is attached.