Study: Medicaid premiums lead to drop in child coverage

A review of national studies suggests that premium increases for Medicaid may lead to higher uninsured rates for children (Source: “Medicaid premium hikes may leave many children uninsured,” Reuters, Feb. 19, 2016).

To see how increases in these cost-sharing premiums impact coverage for kids, researchers analyzed data from 17 studies published between 1995 and 2014, and reported their findings last week in the journal Pediatrics.

One study using national survey data from 1996 to 2003 estimated that raising premiums by about $10 in 2003 dollars would result in a 3 percentage-point decrease in public insurance enrollment among children eligible for the federal Children’s Health Insurance Program, with roughly one-third of these kids becoming uninsured.

Another study of medical expense survey data from 1999 to 2010 also estimated the impact of a $10 premium increase. The result was an average 3.9 percentage point decrease in public insurance enrollment for kids, countered by a 2.3 percentage point increase in coverage through private health plans – leaving a net rise in the child uninsured rate of 1.6 percentage points.

As of 2013, 30 states imposed premiums on some children in the CHIP program and five states imposed them on some Medicaid recipients. The fees ranged from about $10 to $39 per month. Ohio officials plan to ask the federal government later this year for a waiver to charge some nondisabled, working-age adults on Medicaid premiums of up to $99 annually.