Daily News Updates - Health Insurance News

SCHIP Childrens’ Federal Health Plan -- Not Meeting Needs

New research has revealed that switching from private health insurance to the U.S. government children's health insurance program called SCHIP still does not provide adequate health-care. The program is funded by the Federal Government to provide health insurance to low-income children with no private coverage and are not eligible for Medicaid. A study by the University of Rochester Medical Center has assessed that the program doesn't address chronic health conditions, like asthma.

The problem occurs when patients switch to SCHIP who have had or could have private insurance. A waiting period is required of these people to avoid a situation called “crowd-out”. At this time, thirty-five states require this waiting period, during which time they are without health insurance. In a prepared statement, assistant professor of pediatrics at the University of Rochester Medical Center, Laura Shone stated "First of all, we've found that few families switch their children to SCHIP when they have the option of private health insurance... in fact, only 7 percent do." "Second, those who do switch have the same unmet health-care needs as those who didn't have insurance when they enrolled”

These findings are based on research done on New York's Child Health Plus SCHIP plan. This New York plan does not institute the waiting period. This location provided an opportunity to study the effects of those who switch from private insurance. The study shows that families ‘are not "saving up" health problems to address after enrollment in SCHIP’. Even when including both groups, those with and those without prior health insurance, still about 57% had unmet health-care needs after enrolling in the program. Of those switching from private insurance, as many as 10% had asthma and 7% had other chronic health conditions.