Michigan Gets $6M Fed Bonus For Insuring Kids

(CBS Detroit) Nearly $6 million was awarded Wednesday to Michigan for ensuring more children have health coverage, federal Health and Human Services Secretary Kathleen Sebelius announced.

The performance bonus payments are funded under the Children's Health Insurance Program Reauthorization Act, one of the first pieces of legislation signed into law by President Barack Obama in 2009. 

To qualify for these bonus, states must surpass a Medicaid enrollment target. They also must adopt procedures that improve access to Medicaid and the Children's Health Insurance Program (CHIP), making it easier for eligible children to enroll and retain coverage. 

"More of Michigan's children now have the advantages health coverage provides," Sebelius said. "And Michigan parents now have the security of knowing their children can get the health care they need without worrying that an illness could leave them with a lifetime of medical bills."

This is the third year Michigan is receiving a performance bonus. Federal officials said the state won it by making   improvements to streamline the children's health coverage enrollment process. 

For example, the same forms are used to apply for Medicaid (Healthy Kids) or CHIP (MIChild) and applicants are not required to appear for a face-to-face interview, which can be especially difficult for working parents. 

Michigan has also implemented the "presumptive eligibility" option, a procedure that jump starts enrollment for eligible children, making it possible for them to see a doctor or get a prescription filled while the full eligibility  process is being completed. In addition, Michigan guarantees eligible children enrollment for a full year, ensuring that they get continuous coverage and that care is not disrupted.

Michigan is one of 23 states to share over $296 million in federal performance bonuses this year.

The bonuses come one week after new data from the Centers for Disease Control and Prevention show that the number of children with insurance increased by 1.2 million since the CHIP reauthorization in 2009. An HHS issue brief notes that this increase has been entirely due to greater enrollment in public programs such as Medicaid and CHIP.

Performance bonuses help offset the costs states incur when they enroll lower income children in Medicaid.  The bonuses also give states the incentive to streamline their enrollment and renewal procedures, ensuring long-term improvements in their children's health insurance programs.

"Despite serious fiscal challenges, today's awards show that children's health remains a top priority for States," said Cindy Mann, Deputy Administrator of the Centers for Medicare and Medicaid Services.  "Not only have more states qualified for performance bonuses than in the past, but many have continued to improve the efficiency of their programs."