Colorado Expands Health Care to 4,000 Children with Low-to-Modest-Income Households

Strategic Insights -

State lawmakers in Colorado are celebrating a major victory after the federal government approved a plan to extend health care to 4,000 additional children from low-to-modest-income households. This expansion is made possible by raising the income limit for the Children's Health Insurance Program (CHIP) from 185 percent to 200 percent of the federal poverty level, effectively covering families earning up to $38,700 for a family of four. Colorado's share of the cost will be covered by new tobacco-tax revenues, while the federal government will contribute half of the cost through Medicaid.

The plan is expected to provide preventive and acute care services to eligible children, reducing the likelihood of costly emergency room visits. Notably, the average medical cost for each new child enrolled is estimated to be around $1,500 per year, comparable to the costs incurred by children from lower-income families eligible for regular Medicaid. By expanding health care access, Colorado lawmakers aim to prevent the syndrome of delayed medical care and associated costly emergency room visits.

Key Takeaways:

  • Colorado's plan to extend health care coverage to an additional 4,000 children has been approved by the federal government.
  • The income eligibility limit has been raised from 185 percent to 200 percent of the federal poverty level, effectively covering families earning up to $38,700 for a family of four.
  • Colorado's share of the cost will come from new tobacco-tax revenues, while the federal government will contribute half of the cost through Medicaid.
  • The average medical cost for each new child enrolled is estimated to be around $1,500 per year, comparable to the costs incurred by children from lower-income families eligible for regular Medicaid.
  • The plan aims to provide preventive and acute care services to eligible children, reducing the likelihood of costly emergency room visits.
  • By expanding health care access, lawmakers hope to prevent the syndrome of delayed medical care and associated costly emergency room visits.
  • Colorado's cigarette sales dropped by almost half in January 2005, but by July 2005, sales were about equal to the previous July.
  • Sales in November 2005 were 75 percent of the previous November's level, but the last three months of 2004 saw skyrocketing sales due to stockpiling before the new tax.

Statistics:

  • Average medical cost for each new child enrolled: around $1,500 per year
  • Coloradans earning up to $38,700 for a family of four now eligible for CHIP
  • Federal government contribution through Medicaid: 50% of the cost
  • Total 2004 cigarette sales revenue: $171 million (backers' original estimate)
  • 2005 January cigarette sales: almost half of the previous January's level
  • 2005 July cigarette sales: about equal to the previous July's level
  • 2005 November cigarette sales: 75% of the previous November's level

Sources:

  • "Federal Government Approves Colorado Plan to Extend Health Care to More Children" by Bill Scanlon, Rocky Mountain News (undated)
  • State Children's Health Insurance Program (SCHIP) budget: $40 billion over 10 years
  • Center for Medicaid and Medicare Services administrator: Dr. Mark B. McClellan