1. Kaiser Cuts Health Insurance Rates for Laid-Off Workers by Frank Cho, TheHonolulu Advertiser In the growing effort to help workers laid off in the wake of the September 11 terrorist attacks, Kaiser Permanente Hawaii is offering to discount health insurance rates by 33 percent for some workers who are losing their employer-sponsored coverage. The Kaiser Permanente Personal Advantage Conversion Gap Plan would lower the monthly rate to $101.03, down from $134.37 for single coverage. A couple would pay $202.06 and a family of three or more would pay $303.09 if they qualified. Anyone who has lost their health coverage following the September 11 attacks can apply, but the program will be limited to the first 300 applicants who qualify, Kaiser said. "We are doing it because we think it is important to contribute in some fashion to the relief effort locally for people who have lost their coverage. We don't have the deep financial resources to have a substantial program. But we should do what little we could," said Jan Kagehiro, a Kaiser spokeswoman in Honolulu. Kaiser, the state's biggest health maintenance organization, joins the Hawai`i Medical Service Association, Hawaii's largest fee-for-service insurer, in providing subsidized health care coverage for laid-off workers in the wake of the attacks. HMSA last month began a $50 million program for its members that included direct payments and allowances for financially struggling employers. To qualify for the Kaiser plan, workers must apply within 60 days of losing their health coverage and have no other options, Kagehiro said. Applicants must be between 18 and 65 years old and have an income level below 300 percent of the federal poverty level Standards. "We are mostly communicating with our members and to employers right now," Kagehiro said. The plan would be similar to the company basic plan. In addition to the monthly premium, users would pay a $15 fee for an office visit and a 50 percent co-payment for laboratory, X-ray and diagnostic tests. There would be no charges for hospital inpatient services, Kagehiro said. Once accepted, applicants could receive the subsidized coverage for up to six months. Kagehiro said Kaiser plans to evaluate the plan in June to determine whether to continue coverage at that time. 2. Report on Community-Based Medicaid and CHIP Outreach The Center for Studying Health System Change has released a new issue brief examining local organizations' roles in helping enroll children in the CHIP. Community-based organizations (CBOs) can play an integral role in linking children to Medicaid and CHIP, says the report. Targeted outreach by CBOs can often be more efficient than statewide outreach since these organizations are more familiar with the specific population they serve, and can tailor their outreach efforts to meet the specific needs and demographics of their community. The report also outlines how schools, employers, local health departments, and health care providers can play a key role in enrolling children in these programs and several challenges local organizations are facing in sustaining effective Medicaid and CHIP outreach efforts. The news release and issue brief are at http://www.hschange.org/CONTENT/377/ 3. Kaiser Commission on Medicaid and the Uninsured New Publications a. Covering Parents through Medicaid and SCHIP: Potential Benefits to Low-Income Parents and Children In 1999, there were 10.6 million parents--16 percent of all parents--who lacked health insurance coverage. If states were to cover parents under Medicaid and CHIP to the same extent as they currently cover children, 7.4 million uninsured parents-70 percent of all uninsured parents--would gain eligibility for coverage. By expanding Medicaid and CHIP to parents, states could significantly increase the access of low-income parents to health care services. In 1999, uninsured parents were more likely than their counterparts with Medicaid coverage to lack a usual source of care; to have unmet health care needs; to have gone without a physician or dental visit in the past year; and to have gone without a breast exam in the past year. By covering parents, states also can increase the extent to which uninsured children are enrolled in Medicaid and CHIP. In states that have expanded coverage for parents under Medicaid, 81 percent of eligible children participate in Medicaid compared to only 57 percent of children in states without family-based coverage programs. b. Issues Related to Unspent CHIP Money This policy brief discusses issues involving over $11 billion of CHIP funds that states have not spent. What are the implications of allowing states to apply to use the funds for unemployed workers in these tough economic times? c. The Role of Medicaid in State Budgets This policy brief discusses the reasons behind rising growth in Medicaid and explores strategies for the federal government and states to cope with higher Medicaid spending in tough economic times. 4. Maintaining Health Coverage in a Sluggish Economy Laid-off workers are at risk of losing health care coverage for their families. Families USA says the stimulus package could help stabilize the economy by helping families maintain health care coverage, offering subsidies to help families pay for COBRA benefits and expanding Medicaid coverage for those not eligible for COBRA.