HB 2201- The Healthy Kids Program

HB 2201- The Healthy Kids Program

Summary:

Creates Oregon Healthy Kids Program, which includes private health option, to provide health care coverage to children.

Imposes duties on Department of Human Services and Office of Private Health Partnerships to carry out the program.

Creates grant program in Office of Private Health Partnerships to fund outreach, enrollment and retention activities related to Oregon Healthy Kids Program.

Establishes Private Health Option Program Account.

Continuously appropriates moneys in account to Office of Private Health Partnerships for purposes of administering private health option.

Increases cigarette and other tobacco products taxes.

Distributes tax revenues from increase to Private Health Option Program Account, Oregon Health Plan Fund, and Tobacco Use Reduction Account and to Department of Human Services for physician and health care provider reimbursement rate increases. Applies tax increases to cigarette and tobacco products tax reporting periods beginning on or after effective date of Act.

The goal of the Healthy Kids Program is to ensure comprehensive medical, dental and vision benefits for all Oregon children in families earning up to 350% of the federal poverty level. There are many positive aspects of the HKP and the Governor has declared the program will offer affordable health care for every child in Oregon.

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Some people think that providing government subsidy to such high income levels is socialized medicine for the masses, not American compassion for the poor. Such people such as rep. Richardson think that the limit (350 % of federal poverty line) should be lowered. Richardson puts forward some other flaws with the ’healthy kids’ bill: he suggests that although the Healthy Kids Program applies to all children under age 19, its taxpayer funded health benefits should be provided only for Oregonians, not those here illegally. He adds that since every child born in America is an American citizen, even if the parents are here illegally, the number of ’Illegals’ who are children covered by the HKP will be very small. Nevertheless, providing HKP benefits to them sends the wrong message to non-citizens who are in Oregon illegally. (note: changes in this part of the bill could perhaps lead to children of ’illegals’ born in the US being eligible whilst their siblings who happen to be born outside the US would not be eligible).Richardson also states that, if Oregon state employees become aware that ’Illegals’ are seeking taxpayer funded benefits, they should be able to inform immigration authorities. In the current draft, the Healthy Kids Program does not allow state employees to inform immigration authorities.
Many republicans feel that while providing health insurance to uninsured kids is a noble cause, creating a new program funded by a regressive tax targeted at a minority group that will provide a decreasing revenue stream to fund a growing entitlement is at best inappropriate. Moreover, many opponents feel that this program will have problems with sustainability.
Another issue that has not been brought up is the fact that smokers are usually in a lower socio-economic group, thus, in essence this bill might be taxing the poor to fund healthcare for the poor.

4/26/2007 update

After more than four hours of delay, procedural maneuvers, a staged walk-out by House Republicans and a move by one House Republican to refuse to vote on the bill, House Republicans voted today to kill the Democrat-backed “Healthy Kids Plan,” which would have extended health care coverage to Oregon’s 117,000 uninsured children. All of the Democrats and Rep. Vicki Berger (R-Salem) voted in favor of the bill. All of the other Republicans, with the exception of Rep. John Lim, voted against the bill. Rep. Lim took the unusual step of refusing to cast a vote on the measure.
The vote came after months of attempts by House Democratic Leadership to negotiate with House Republican Leadership on a bipartisan compromise. When House Republican leadership refused to continue constructive negotiations, three weeks ago, Democrats decided to bring the bill to a vote and debate on the House floor. Democrats made several amendments to the bill prior to bringing it to a vote in an effort to alleviate concerns raised by House Republicans, such as limiting participation in the program to legal Oregon residents only and dropping the eligibility for the program from 350% of the federal poverty level to 300% to make the program more fiscally sustainable.
The House Democratic leadership brought HB 2201 to the House Floor knowing the bill did not have the votes to pass, and had abandoned bipartisan and bicameral negotiations meant to reach a compromise. In the end, democrats believe that republican’s failed our state’s children, choosing partisan politics and the deep pockets of big tobacco over the health and well-being of our kids

4/26/2008 update

Healthy Kids Program failed both in the 2007 Legislative Session (House Bill 2201), and again at last month’s election (Measure 50).
The healthy kids plans failed to the shock of many Oregonians; depriving us of a good opportunity to provide healthcare for many children who lack access to basic health care services.
There were several amendments made to the bill prior to bringing it to a vote in hopes of winning bi-partisan support. Yet, after more than four hours of delay and procedural maneuvers on the day of the vote, the Healthy Kids Plan failed to receive the votes necessary for passage. The Healthy Kids Plan required a three-fifths vote, and unfortunately only one Republican voted with the Democrats for the plan so in the end it was defeated by a 32-24 vote.