July 2004

Children's Medicaid and SCHIP in Texas: Tracking the Impact of Budget Cuts

Enrollment in the Texas State Children's Health Insurance Program (SCHIP) has declined steeply over the past year on account of recent policy changes that have significantly impacted children. Cuts to Medicaid and SCHIP were deep, and even after several incremental restorations, are projected by state officials to reduce total spending for the FY2004-2005 biennium budget by more than $1.6 billion. Savings were achieved by making changes to Medicaid and SCHIP eligibility and benefits. Policy changes in these programs have reduced the role of public health insurance coverage for low-income children in Texas who rely on Medicaid and SCHIP for comprehensive preventive and primary care health services. The state of Texas has one of the nation's lowest rates of employer-sponsored coverage and the highest rate of uninsured in the nation. Over 1.4 million children were uninsured in Texas in 2002. Health insurance programs such as Medicaid and SCHIP are vital to the health of many low-income children who otherwise would be unable to afford or obtain health insurance coverage. This policy brief provides a summary of recent Medicaid and SCHIP policy changes and their impact on coverage for children.