More children eligible for Kids Care coverage

GLENDALE — Nearly 10,000 more Arizona children will soon be eligible for subsidized health care.

The federal Centers for Medicare and Medicaid Services has approved a bid by the state to expand eligibility for its Kids Care program to 225% of the federal poverty level, up from 200%. That translates out to $58,895 for a family of three and $70,200 for a family of four, with higher levels for larger families.

With the new eligibility standards, that should boost enrollment to close to 72,000 youngsters.

Kids Care provides subsidized health insurance to the children of families who earn too much to qualify for the Arizona Health Care Cost Containment System. Traditional AHCCCS covers families earning up to 138% of the poverty level — about $36,000 for a family of three.

What that leaves are those who either are working at jobs without insurance or do not earn enough to purchase private coverage, even for their children.

“This is a win for 10,000 kids and teens in Arizona who can now see a doctor when they have asthma, who can see a nurse when they are not feeling well, or a dentist when they have a toothache,” said January Contreras. She is the chief executive officer of the Children’s Action Alliance.

Contreras said the move also is long overdue.

“Until now, only two states covered less families than we do in terms of income level,” she said.

At a news conference Tuesday, Gov. Katie Hobbs said she “demanded an increase” in the eligibility level as part of the deal with the Republican-controlled Legislature on the state budget. But it could not take effect until the feds agreed to provide their share, which comes down to about $3 for every dollar of state funds.

Still, the expansion is expected to cost Arizona taxpayers $5.5 million for the current budget year and $6.6 million next year.

Applications will be available on March 1, with coverage beginning a month after that.

“This is a monumental step towards protecting our children, promoting a healthier future for Arizonans, and building an Arizona where every child has the chance to thrive,” the governor said. And she said this is about more than the immediate care that will be available.

“It means better high school and college graduation rates,” Hobbs said.

“It means they’re more likely to find a good-paying job,” she continued. “And it means they can grow up to reach their full potential without having to rely on Medicaid as an adult.”

In a separate announcement Tuesday, AHCCCS said it was going to make permanent a program to provide finances to families with disabled children.

Carmen Heredia who heads the agency said this actually was started during the COVID pandemic which resulted in “severe workforce shortages” of people able to provide that care. She said some of those shortages still persist.

“Reimbursing parents as paid caregivers is a step in the right direction and the right thing to do for these children who need these critical services from those they feel the most comfortable with — their parents,” Heredia said.

Kids Care actually dates back to 1998 when Republican Gov. Jane Hull convinced lawmakers that the program was a good deal, with that 3-1 federal match. But enrollment has from time to time been frozen as the state was dealing with its own budget shortfalls, creating waiting lists.

Those lists are gone, but the care is not free.

Premiums range from $10 a month for one child in a household at the lower income range to up to $70 for multiple children in households with earnings near the cap.

To be eligible, children must be 18 or younger, Arizona residents and have a social security number or be applying for one. There also is a requirement to be a legal U.S. citizen or a qualified immigrant.