NurseWeek

Gov. Davis signs bills to expand insurance program

By Cathryn Domrose
October 9, 2000


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Sacramento, Calif. Gov. Gray Davis took the first steps to expand the state’s Healthy Families children’s insurance program Sept. 30 by signing two bills that would authorize it to cover eligible parents.

Participation in the program has fallen short of expectations, so the state may have to give back about $590 million in unspent federal funds unless Congress grants an extension.

Extending coverage to parents of children already in the subsidized private insurance program would be a good use of the unspent money, said Peter Anderson, deputy director for the Managed Risk Medical Insurance Board, which administers Healthy Families. "Even if we enrolled all the eligible children in the state, we would still give back hundreds of millions of dollars," Anderson said.

So far, the program has enrolled about 350,000 of an estimated 600,000 eligible uninsured children. The program offers premiums of $4 to $9 a month for families making less than 2 1/2 times the federal poverty level. Families making less than the federal poverty level are eligible for Medi-Cal insurance.

Davis is in the process of applying for a federal waiver allowing California to cover parents under Healthy Families, Anderson said. State law would have to be changed to reflect the new benefits and co-payments and the state would have to renegotiate contracts with the private insurance companies offering Healthy Families premiums, he said. He estimated coverage of parents would not begin before July 1.