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September 29, 2003  
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NUMBER OF CHILDREN LACKING HEALTH INSURANCE
UNCHANGED THANKS TO MEDICAID AND CHIP PROGRAMS

Census Data Reveals an Increase in Uninsured Adults

WASHINGTON - The number of American children without health coverage in 2002 remained steady from 2001, according to a U.S. Census Bureau report released today. Overall, more than 9 million children ages 18 and younger had no health insurance in 2002—virtually the same as the number of uninsured children in 2000 and 2001. The downturn in the economy took its toll causing both children and adults to lose coverage because of a decline in employer-based health insurance. But the loss for children was offset by increased coverage from Medicaid and the Children’s Health Insurance Program (CHIP). The Census reports that among children ages 17 and younger, only 63 percent had employer-based coverage in 2002 compared to 63.9 percent in 2001. But the percentage of those children covered by Medicaid increased from 22.7 percent in 2001 to 23.9 percent in 2002.

“Instead of trying to dismantle these programs the way the Bush Administration wants to, Congress should be working to expand them to cover all children,” said Marian Wright Edelman, President of the Children's Defense Fund (CDF). “It’s shameful that 9 million children in the world’s wealthiest country have no health insurance. Insuring those 9 million children should be a higher priority than handing out billions of dollars in tax cuts to millionaires."

Medicaid now provides more than 22 million children with health insurance. The Children’s Health Insurance Program, which began in 1997, provided 5.3 million children with health coverage last year. Without these programs, as many as one in three children ages 18 and younger would have no health insurance. In fact, while the change in coverage for poor children from year to year is not significant, the percentage of uninsured poor children has decreased in each of the last two years—largely due to increased Medicaid coverage. Yet poor children are still twice as likely to be uninsured as children who are not poor.

Unfortunately, the states, suffering from poor economic times, are drastically cutting back on Medicaid. According to the Kaiser Commission on Medicaid and the Uninsured, 34 states have reduced Medicaid eligibility and/or restricted health care benefits, even though a decrease in state tax revenues is the primary cause of the states’ financial woes rather than growth in Medicaid.

“Federal programs provide an essential safety net for children in both good and bad times but are crucial during times of economic hardship,” said Edelman. “Without Medicaid and the Children’s Health Insurance Program, thousands of children would have lost access to health care and would not have received the preventive care and medical treatment they need to grow into strong productive adults.”

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The mission of the Children's Defense Fund is to Leave No Child Behind and to ensure every child a Healthy Start, a Head Start, a Fair Start, a Safe Start, and a Moral Start in life and successful passage to adulthood with the help of caring families and communities. CDF provides a strong, effective voice for all the children of America who cannot vote, lobby, or speak for themselves. We pay particular attention to the needs of poor and minority children and those with disabilities. CDF educates the nation about the needs of children and encourages preventive investment before they get sick, into trouble, drop out of school, or suffer family breakdown. CDF began in 1973 and is a private, nonprofit organization supported by foundation and corporate grants and individual donations. We have never taken government funds.

 

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