Wednesday, April 16, 2008

SCHIP Crowdout 

Filed As:  Health Care

Peter R. Orszag of the Congressional Budget Office recently testified on the State Children's Health Insurance Program (SCHIP), focusing on its impact on the number of uninsured low-income children and the extent to which it displaces private coverage. (PDF copy)

According to CBO's estimates, the portion of children in families with income between 100% and 200% of the poverty level who were uninsured fell by about 25% between 1996 (the year before SCHIP was enacted) and 2006.

In contrast, the uninsurance rate among higher-income children remained relatively stable during that period. CBO has concluded that for every 100 children who gain public coverage as a result of SCHIP, there is a corresponding reduction in private coverage of between 25 and 50 children. Orszag also discusses the Administration's August 17, 2007 directive to state health officials that imposes certain minimum requirements on states seeking to enroll children in SCHIP whose families have income above 250% of the poverty level. CBO's analysis suggests that the directive's impact on enrollment is likely to be modest

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