More than 12,000 families fail to pay health premiums

JEFFERSON CITY, Mo. -- Gov. Matt Blunt said Wednesday that newly required premiums for a children's health insurance program are a reasonable step that help build personal responsibility.

His remarks came after children in more than 12,000 families lost their state-funded health care this week because their parents failed to pay the premiums.

About half

Families enrolled in the Children's Health Insurance Program had until last Saturday to pay the premiums. A total of 12,130 families did. But 12,388 families did not.

The premiums were part of a larger bill backed by Blunt that also cut Medicaid eligibility for low-income parents, the elderly and disabled, and reduced the services covered for most adults.

Blunt said some families may have decided they're better off enrolling children in their employer-sponsored health insurance plan. He said he had no figures on how many families did that and how many simply didn't have the money to pay the premiums.

"It's still a great deal for Missouri families," he said Wednesday. "It is reasonable to ask families to be a part of ensuring that their children have access to health care. This is a good step forward based on personal responsibility and allows us to have a system that's sustainable."

Shortsighted

But opponents of the premiums said the new charges are shortsighted.

House Minority Leader Jeff Harris, D-Columbia, noted Wednesday that Blunt touted the program during his State of the State speech.

"The governor was right in January when he called CHIPs a good investment," Harris said. "It's too bad he won't back up his words with deeds."

The Department of Social Services now says it will give families until Nov. 30 to pay the premiums. If they do, the health coverage will resume. If not, the families would have to reapply and wait several months to rejoin the program.

'A great investment'

"This is a very cost-effective form of insurance and a great investment in children," said department spokeswoman Deborah Scott. "We hope people who haven't paid will get back on the program as quickly as possible."

The CHIP program covers children in households that don't have private insurance but earn too much to qualify for the state's basic Medicaid program for the poor. Missouri has one of the broadest programs in the nation, insuring families that earn up to three times the poverty rate, or $58,050 for a family of four. At the end of June, the program covered 93,730 Missouri children.

A law that took effect Aug. 28 required premiums of families who earn at least 150 percent of the federal poverty level -- for example, $29,025 a year for a family of four. That family would owe a $24 premium, equal to 1 percent of its income.

Families with high incomes must pay larger premiums, up to 5 percent of their income. Those in the top income bracket already paid premiums. The highest charge is $257 a month for a family of eight earning up to $97,176 a year.

Opponents of the premiums also noted that the federal government pays 72 percent of the program's costs.

"The CHIP program was expansive, but it was incredibly successful and made Missouri a leader nationally," said Rep. Rachel Storch, D-St. Louis. "Studies have shown it reduced emergency room visits, it reduced the need for hospitalization and it even improved school attendance."