Legislature restores funding to Kids Care and AHCCCS

Posted by AzBlueMeanie:

It went down to the wire but the Arizona Legislature reversed its decision to eliminate Kids Care and to restore funding to the program. Howard Fischer reports Lawmakers restore health care cuts | eastvalleytribune.com:

Facing a threatened $7.8 billion loss in federal funds, state lawmakers Thursday agreed to restore the health care they had previously cut for about 350,000 Arizonans.

The measure most immediately repeals a provision in the new state budget which kills funding for Kids Care. That program is designed to provide nearly free health insurance for children of parents who earn too much to qualify for Medicaid but are still considered "working poor.''

About 36,000 youngsters now in the program would have lost coverage on June 15 without the change.

The bigger piece of the pie is reversing the decision to scale back who is eligible for the Arizona Health Care Cost Containment System, the state Medicaid program. As approved earlier this year, that change would have eliminated care for about 310,000 individuals at the end of the year. 

What made them change their minds? President Obama signed into law the new health care reform legislation. That law eventually will provide extra cash to help Arizona with health care costs (the carrot).

The law also requires states to maintain their health care programs as they were the day he signed the bill, not only to get future increases but even to maintain existing federal aid (the stick).

Legislative budget staffers pegged the loss at $7.8 billion a year. Legislators wanted the carrot, and groused about the stick.

Rep. Matt Heinz, D-Tucson, said the legislation is flawed: While it restores funding for Kids Care, it does not repeal an enrollment cap.

That cap, he said, prevents new, eligible youngsters from enrolling even if others no longer need the services. Ultimately, Heinz said, the program will self-destruct unless that cap is lifted.

Evil bastards.