Home Health Care State sues feds over rule that keeps kids on state-subsidized health care even if parents skip premiums

State sues feds over rule that keeps kids on state-subsidized health care even if parents skip premiums

by Universalwellnesssystems

governor Ron DeSantis is suing to overturn new federal guidelines that require children to continue receiving state-subsidized health insurance even if their parents skip premium payments.

States argue that the new rules will be costly if parents do not pay premiums and children are allowed to remain on state-subsidized insurance, as the federal government requires. It is estimated that unpaid premiums could be up to nearly $30 million under the current system, and closer to $50 million under Florida's expansion. kid care It was approved last year, according to a 411-page complaint the state filed Thursday in federal court.

Critics say Florida is the first state to file a lawsuit. This is the latest chapter in the controversial relationship between the DeSantis administration and the federal government.

“The Biden administration is unlawfully ignoring the[premium payment]requirements and attempting to make the program free, threatening both its solvency and long-term stability,” the complaint says. “These actions threaten Florida's ability to expand its programs to more children in need.”

Critics said the state led the nation in stripping children from Medicaid, the state insurance for the poor, at the end of the pandemic.Florida was topped only by Texas. Over 400,000 Florida children lose health insurance as part of Medicaid repeal when it expires in 2023 joan alker Managing Director of Georgetown University Center for Children and Families.

In December, Florida was one of nine states to receive a letter from the state. Secretary of Health and Human Services Xavier Becerra The government is sounding the alarm that more people are losing their health insurance due to procedural issues.

And this is a continuation of the same pattern, Alker said.

“Florida's governor has issued a special program for children to lose coverage (of state health insurance for children) if they fail to pay certain premiums and comply with federal laws designed to protect families from medical debt. “We have filed a lawsuit asking a judge to allow our children to receive the medical care they need,” Alker said in a prepared statement. “If the governor is successful, more children in Florida will spend more time without insurance. It puts educational outcomes at risk.”

According to the complaint, 119,000 children are currently in KidCare. KidCare is comprised of several government-subsidized medical plans, including Healthy Kids. KidCare is supported by both state and federal funding, requires a small monthly premium from beneficiary families, and covers children from age 5 to their 18th birthday.

Law (HB121) that Passed unanimously in 2023 Raised eligibility standards to include people earning up to 300% of the federal poverty level (FPL), which is $93,000 for a family of four, which is more than 200% of the FPL maximum household income.

With this expansion, an additional 26,000 children could be eligible for state-subsidized health insurance.

However, the expansion, which was supposed to take effect immediately, has been postponed due to disagreements. This is because the federal government has determined that the expansion of eligibility will not become established through simple amendments to the plan. Instead, federal authorities asked the state to apply for a waiver, and a showdown began.

Centers for Medicare and Medicaid Services (CMS) “indicated that it would not approve Florida's expansion proposal unless it was accompanied by a provision modification that would allow the state to disenroll eligible children if they fail to pay premiums during the period of continued eligibility.” says the complaint.

CMAccording to the complaint, S's rule “significantly reduces the incentive for enrollees to pay premiums after the first month (of enrollment), without incurring any penalty for not paying premiums.” It is said to mean. As a result, it is only natural to expect that non-payment will become widespread. ”

holly bullard, The Florida Policy Institute's chief strategic development officer lamented that this is the first time the Sunshine State has proceeded with a lawsuit contrary to federal regulations, and expressed concern about the potential impact it could have on children's health insurance across the country.

“This was a victory for Congress and for children. We hate to see litigation between the state and federal government further delay access to care for tens of thousands of children,” she said. Ta.

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