Rep. John Katko-backed bill aims to ensure CHIP, Medicaid recipients keep coverage

March 27-- Mar. 27--A bill backed by U.S. Rep. John Katko aims to ensure Medicaid and Children's Health Insurance Program recipients don't lose coverage due to bureaucratic hurdles.

The Stabilize Medicaid and CHIP Coverage Act sponsored by U.S. Rep. Joe Kennedy III would guarantee 12 months of continuous coverage and prevent enrollees from losing health insurance due to paperwork and other requirements.

CHIP and Medicaid recipients can lose coverage due to other factors, such as life events or loss of housing.

"Millions of Americans rely on Medicaid and CHIP for health insurance and cannot afford lapses in coverage," Katko, R-Camillus, said in a statement. "No adult or child receiving coverage through these programs should lose their eligibility as a result of unexpected life events that affect Americans of all backgrounds."

Because of disruptions, many Medicaid enrollees receive coverage for roughly three-quarters of the year. Proponents of the continuous coverage bill also note that CHIP enrollees can experience loss of coverage because of changing between the program and Medicaid.

Kennedy, D-Massachusetts, explained that the loss of CHIP or Medicaid coverage can put patients at risk of financial difficulties.

"Guaranteed continuous coverage for children and families covered by Medicaid and CHIP will reduce life-threatening bureaucratic churn that denies patients the treatment they deserve when they need it most," he said.

The bill has been endorsed by several groups, including the American Academy of Pediatrics, National Alliance on Mental Illness, the Children's Hospital Association and Families USA.

Association for Community Affiliated Plans also supports the bill. The organization's CEO, Margaret Murray, believes the bill will prevent low-income patients from losing health insurance coverage when re-enrolling in Medicaid.

"It also spares providers, health plans and states the costs and headaches associated with addressing disenrollments which owe themselves to paperwork rather than underlying eligibility," Murray said.

Kennedy's bill has been introduced in previous Congresses, but it hasn't been considered in either house. The Senate version of the bill is sponsored by U.S. Sen. Sherrod Brown, an Ohio Democrat.

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