NAEGER SAYS HEALTH INSURANCE PROGRAM TO END

Missouri's health insurance program for children is a financial time bomb, says state Rep. Patrick Naeger.

The Perryville Republican said the program called MC+ is set to expire in 2002, along with the federal funding that pays the bulk of the cost.

Gov. Mel Carnahan lobbied for passage of the state legislation that established the program in 1998. Naeger opposed it.

The program provides health insurance for children under age 19, even for children in middle-class families with income of over $50,000 a year.

"The current administration worked tirelessly to expand the welfare state into the middle class without adequately addressing the long-term consequences," Naeger said.

"It is now the responsibility of our state Legislature to put partisan politics aside and solve this impending crisis," said Naeger.

Most people, he said, don't realize that the state law establishing the program automatically expires on July 1, 2002 unless lawmakers approve a measure to extend it.

Naeger said the state can't count on continued federal funding. "There is not a money tree out in Washington, D.C."

He has introduced legislation that would require the Missouri Department of Social Services to post warning signs and disclose in any advertising that the insurance program is set to expire and coverage would be uncertain past the 2002 date.

The program began in September 1998.

"It is unconscionable for state government not to inform the parents of these 57,000 children already enrolled and those who will sign up in the future that the clock is ticking on this new welfare program," he said.

But Mary Honse, outreach coordinator for MC+ in Jefferson City, sees no need for Naeger's bill.

She said future funding is an issue with many government programs. "A lot of programs have sunset clauses in them."

The program was set up as a result of federal legislation that established the Children's Health Insurance Program and funneled money to the states to help pay for it.

But Naeger said Missouri is one of only a few states that will insure children in a family of four that makes over $50,000 a year.

He said the state shouldn't have extended coverage to families with incomes equaling 300 percent of the federal poverty income level.

"In my opinion, it was irresponsible to do that," Naeger said.

Those at the high end, however, do pay a premium. Currently, 2,400 children are in families at the upper income levels of the program. The bulk of the enrolled children, about 44,500, are covered by the state at no cost to their families, said Honse.

Naeger said his bill is certain to die in the state House this year. But that hasn't stopped him from raising the issue.

He continues to worry about the cost of the program, but Naeger and Honse provide differing figures about exactly how much that is.

Naeger initially reported that Missouri is spending over $261 million a year on the program, with $237 million coming from the federal government. He later retracted that statement and said a check of the budget shows the true cost is $196 million.

The Missouri Department of Social Services Web site puts the cost at $71 million, with $50 million coming from the federal Children's Health Insurance Program and $20 million from the state.

Honse said the Web site figure is inaccurate. The cost this fiscal year is $81 million, she said.

Naeger said the discrepancy in the cost figures needs to be addressed.

Meanwhile, the state continues to push the insurance program. Honse said the program could eventually cover about 90,000 children.

If federal funding ends, the state Legislature will have to make a tough decision about whether to continue the program.

"This is entrapment of future administrations and future legislatures," said Naeger.