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Published: Tuesday, December 28, 2010

Federal grant saves kids health care from budget cuts

A $17.6 million federal grant will help preserve health insurance for children of low-income families threatened by state budget cuts.

Children enrolled in Apple Health for Kids, the state’s health insurance program, received a financial boost from the federal government to help keep their coverage.

The program for children in low-income families received a $17.6 million performance bonus on Monday from the Centers for Medicare and Medicaid Services.

About $200 million in all was awarded to 15 states with health coverage programs. The funding comes two weeks after Gov. Chris Gregoire proposed the elimination of the Apple Health for Kids program for an estimated 27,000 children as part of a package of budget cuts.

Washington state qualified for nearly $7.9 million in 2009, the first year that bonuses were awarded, said Jon Gould, deputy director of the Children’s Alliance, a organization that advocates for children’s health care. This year’s award, Gould said, will help continue Apple Health for Kids and make up for the loss of an estimated $9 million worth of state funding for the program through June 30, 2011.

“It’s more than enough,” Gould said. “It means Washington continues to be in that top tier of states that are successfully providing health care to children.”

Apple Health for Kids was created by Gregoire and the Legislature in 2007 for families with no other options for affordable health care coverage, Gould added.

The Children’s Health Insurance Program Reauthorization Act was signed by President Barack Obama in February 2009 to help provide health coverage to uninsured children. As part of the law, performance bonuses were established for states that support the enrollment and retention of eligible children in Medicaid programs.

States competing for the annual performance bonuses must have at least five of eight qualifying programs in place for simplifying enrollment into Medicaid and the Children’s Health Insurance Program and show an increase in numbers of children being served by the program.

Washington has five of the programs in place. Enrollment in the Apple Health for Kids program has grown by 74,815 children since Oct. 1, 2009, Gould said. A total of 718,000 children throughout the state are part of the program.

The number of uninsured children statewide has dropped from 4.6 percent to 3.4 percent over the past two years, according to the Children’s Alliance.

A poor economy and the loss of jobs has contributed to the increase in the program’s enrollment, Gould said. The state can apply for the annual bonuses through 2013 to help fund Apple Health for Kids.

“We will have to work very hard to sustain the program over the next two years,” Gould said. “We will educate (legislators) about the size of future bonus awards we will be in line for if we continue our commitment to providing children’s health care.”

Amy Daybert: 425-339-3491; adaybert@heraldnet.com.

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