MEDICAID/SCHIP

Feds Approve LA SCHIP Expansion

The Centers for Medicare and Medicaid Services have approved Louisiana’s plans to expand enrollment in the state’s Children's Health Insurance Program, The Times-Picayune reports. Known as LaCHIP, the program will now expand to cover children from families earning up to 250 percent of the federal poverty level. CMS officials expect another 6,500 children to receive coverage under this expansion, adding to the 115,271 already in the program. Families in this new income group (between 200 and 250 percent of poverty) will have to pay a monthly premium of $50 per child, which will in turn make them eligible for a plan modeled after the state employees plan. Most services have a 10 percent co-payment. The state originally hoped to expand LaChip up to 300 percent of poverty, but had to scrap those plans when the federal government last year issued rules against such expansion.

CMS Proposes More State Flexibility

The Centers for Medicare and Medicaid Services is proposing two new rule changes intended to give states more flexibility in designing their Medicaid programs, says a CMS press release. The planned changes, based on the 2005 Deficit Reduction Act, will allow states to offer ‘benchmark plans,’ which are insurance plans based on either federal or state employee plans or ones offered by a state’s largest HMO. States would also have more flexibility in designing plans for specific groups, such as those with disabilities. The rules would also allow states to contribute to the premiums of an individual’s employer-sponsored plan in order to keep them privately insured. States could also revise existing premiums and cost-sharing, potentially increasing the contributions from those above 150 percent of poverty, although all cost-sharing would be capped at 5 percent of family income. For the poorest beneficiaries, no changes are expected in cost-sharing. “The proposed rules will result in patients having more choices and greater control over their health care decisions," said HHS Secretary Mike Leavitt.

HEALTH INFORMATION TECHNOLOGY

Progress on Security

Over the past two years, more than 300 state legislative initiatives related to health information technology have been introduced across the country, according to a new report from the Department of Health and Human Services. During the past 18 months, most states have made substantial progress in determining how they will protect the privacy and security of their electronic health information exchanges; eleven states are considering bills to change privacy and security laws to accommodate health information exchanges; and seven groups involving 43 states and two territories are working on shared privacy and security solutions. Dr. Robert Kolodner, national coordinator for health information technology with HHS, called the report “evidence of the significant role and impact that states and territories can have in advancing health information technology while preserving and promoting privacy and security protections.”

DISPARITIES

Disparities and Quality

Healthcare inequalities between white and minority children in the U.S. have decreased from 1985 to 2004, a study from the New America Foundation reported. Using a composite measure of well-being, Hispanic children in 2004 face a one percent disadvantage to white children. This disadvantage was 14 percent in 1985. The disadvantage faced by black children, as compared to white children, also decreased, down from 56 percent in 1985 to 49 percent in 2004. The report indicates that the primary reason for the disparity reduction is the increase in children with health insurance due to SCHIP.