The Bush administration adopted new standards to stop states from expanding the Children's Health Insurance Program, commonly known as Chip. A letter was sent to officials in states on Friday evening after hours outlining a plan in essence to stop states from expanding the insurance program beyond those at poverty level.
According to the Star Ledger the new rules would require all states to make families wait a year after they lose coverage before they can apply to the government program, according to the letter. The state would also have to prove that 95 percent of the kids from the lowest income levels were enrolled be fore accepting any child from moderate income brackets.
Ann Clemency Kohler, deputy commissioner of Human Services in New Jersey said the program will cause havoc and jeopardize coverage for thousands of families. What is more the new rules are in the middle of a month long congressional recess.
In New Jersey a family of four with an income of $72,274 may enroll their children in the program. The federal medicaid office has approved these measures because the cost of living in New Jersey is so high. The new regulations simply eliminate New Jersey's generous policies.
The real idea behind the new rules is the Bush administration is concerned with the growing movement for a universal health care plan and sees the policies that seek to grant coverage to moderate income families as a step toward that end. And it seems these policies are directed at states that have become more generous including New Jersey, New York and California.
Sen. Joseph Vitale (D-Middlesex), who sponsored the FamilyCare program legislation and has been a strong advocate for expanding coverage to children and adults says the program is now at risk. Mr. Vitale pointed out the program also covers 89,000 parents and said their status may also be at risk.
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