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Health insurance controversy brews in CA

One group is calling into question how a budget cut proposal will affect children's healthcare

With the national unemployment rate at 8.9 percent - and new figures on job losses expected this week - job security is a priority for many families.

Employment is one very common way that families obtain health insurance for themselves and their dependents. Others buy individual health plans on their own, and some go without coverage at all.

But new concerns about health insurance for children are being raised after the California governor proposed eliminating the State Children's Health Insurance Program (SCHIP).

Medicaid Health Plans of America (MHPA) is voicing concerns over what they call an "unprecedented" action that would help rein in the state's spending.

"MHPA member health plans have strong concerns with the proposal and urge Governor Schwarzenegger to reconsider his plan to eliminate coverage for more than 800,000 children in California," said the group's executive director Thomas L. Johnson.

Children with health coverage are more likely to seek medical attention and maintain a regular schedule for check-ups than those without health insurance, according to a study by the Robert Wood Johnson Foundation cited by MHPA.

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Posted: June, 03, 2009