All Kids Coverage

A majority of uninsured children come from families in which one or both parents work full-time. Working families are often ineligible for Medicaid and unable to afford private health insurance.2 Ethnic and racial minorities are most likely to be uninsured. Latinos’ rate of uninsurance is three times that of Caucasians, and African Americans’ and Native Americans’ uninsurance is double Caucasians’ rate. Asian Americans experience nearly one and a half times the uninsurance rate of Caucasians.3

Compared to uninsured children, insured children are eight times more likely to have a consistent source of medical care and receive preventive care. They are also ten times more likely to receive all necessary medical care. Uninsured children are five times more likely to use the emergency room as a regular source of care, several times more likely to postpone or forgo necessary medical care, and almost three times more likely to do without a prescription because their parents can’t afford to pay for it.4

A Florida study showed that children who don’t have health insurance are 25 percent more likely to miss school.5 A California study found that children who were enrolled in health insurance improved their school performance by 68 percent.6

All Kids Coverage includes doctor visits, hospital stays, prescription drugs, vision care and dental care. Premiums and copayments for doctor visits and prescriptions are based on a family’s income. The state covers the difference between what parents contribute in monthly premiums and the actual cost of providing health care for each child. In 2006, Illinois and Pennsylvania became the first states to enact All Kids Coverage plans by maximizing SCHIP benefits and using the negotiating and purchasing power of its Medicaid program.

When children are insured, illnesses are prevented or diagnosed earlier, reducing the need for emergency care, hospitalizations and specialized care for critical conditions. Patients with chronic conditions such as asthma or diabetes can avoid acute care because their primary physician provides the treatments and ongoing monitoring they need.7 Studies show that managing diseases not only improves life for the patients but also saves money. For example, every dollar spent for primary care of asthma saves three dollars in emergency care.8 Twenty-nine other states have realized significant savings by using this primary care model for their Medicaid programs. In Illinois, the All Kids Coverage program is expected to cost $45 million more than is collected from family premiums in the first year. However, the state Department of Healthcare and Family Services estimates that Illinois will save $56 million in the first year of All Kids Coverage by implementing the primary care model.9

Health care is one of the fastest growing industries in the nation. In its first year, Illinois’ All Kids Coverage program will capture an additional $37 million in federal matching funds for covering more children who are eligible for Medicaid and SCHIP. The $37 million will have a direct impact on the state’s economy. Using a U.S. Department of Commerce input-output model, its ripple effect is expected to produce $87,561,000 in new business activity and $30,769,000 in new wages in the first year.10

Americans believe that all children deserve health care when they are ill and preventive care to keep them from developing serious illnesses. Polls show that 89 percent of Americans support government programs which ensure that all children have health insurance even in difficult economic times, and 79 percent support it even if it will result in an increase in their taxes.11