Mike Leavitt Tells States To Insure More Of Their People And Defends New Eligibility Limits

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Main Category: Medicare / Medicaid / SCHIP
Also Included In: Pediatrics / Children's Health;  Public Health
Article Date: 02 Sep 2007 - 0:00 PST

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In the same speech Mike Leavitt, US Health Secretary, told states to take more responsibility for providing health care coverage for more of their people, while at the same time defending the new eligibility limits in federal funding for some children. He says states should be focusing harder on getting more middle class people insured, rather than depending more and more on the federal government.

There are about 6.6 million children in the USA who are not poor enough to qualify for Medicaid who most likely will be excluded from eligibility for medical cover if the US Centers for Medicare and Medicaid Services proposed new restrictions go through. At the moment there is disagreement between the Bush administration and Congress about how much money should go into renewal of SCHIP (State Children's Health Insurance Program).

Medicare would like to see reimbursements to states limited to families whose incomes to not go over 250% of the federal poverty level - approximately $50,000 per year for a family of four. Leavitt is arguing that any family earning more than 250% over the federal poverty line is not poor. He says the aim of the program is to help poor children only. According to the Census Bureau, there are now 47 million people in the USA without any health coverage at all, an increase of 2.2 million since the last count. Of great concern is that middle class employed people make up the majority of this increase.

A growing number of people throughout the USA, including several politicians say the proposed ruling will create even more uninsured children.

Getting state funding for a family of four earning over 50,000 dollars a year is not simple. There is a waiting limit of one year. The state also has to prove that private insurance has not gone down. This is a catch-22 situation for several states - as employer sponsored health insurance cover has been falling for many years it is almost impossible for a state to prove insurance has not been falling.

The USA spends a much higher percentage of its gross national product (GNP) on health than any other developed nation. However, it is virtually the only one that does not provide universal health care cover for all. Spending on healthcare, as a percentage of GNP in the United Kingdom is half that of the USA. But in the UK everyone gets completely free medical treatment, and the following people pay nothing for their prescription drugs: those over 65, those under 18, the unemployed, people on lower incomes, pregnant women. Those who do have to pay for their prescriptions pay a maximum of $14 dollars per prescription; even if it is a months' supply of expensive cancer medication, that month's supply will only cost them 14 dollars.

Written by: Christian Nordqvist
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