On November 15, 2005, Illinois Governor Rod Blagojevich (D) signed the Covering ALL KIDS Health Insurance Act.
“We’ve worked hard for three years to make health care available for more working and low-income families,” said Blagojevich. “But thousands of kids from working class and middle-class families have fallen through the cracks because their families earn too much to qualify for government programs, but still can’t afford coverage. That’s not what the American Dream is all about. This week we took the opportunity to make sure that every child in Illinois has access to affordable, good health insurance.”
The program begins in July 2006.
In addition, Illinois raised eligibility for FamilyCare from 133 percent of the federal poverty level (FPL) to 185 percent FPL. The expansion is expected to cover approximately 50,000 additional working parents. Illinois has raised eligibility for FamilyCare annually since 2002. The state has authority to cover parents up 185 percent FPL.
Beginning in July 2006, the All Kids initiative will make insurance coverage available to all uninsured children with premiums charged on a sliding scale by income. A family of four earning $40,000 to $59,999 will pay $40 a month per child, families earning $60,000 to $79,999 will pay $70 per child, and families earning $80,000 to $99,999 will pay $100 per child. Children in families with higher incomes and without insurance will also be eligible, but the premiums will be higher.
The program is estimated to cost $45 million in the first year and will be funded through savings generated by implementing a new primary care case management program in the FamilyCare and All Kids health care programs. The new statute requires the state to apply for waivers to receive federal funding under Medicaid or the State Children’s Health Insurance Program (SCHIP), but it directs the state to implement All Kids regardless of whether a federal waiver is approved.
