Georgia House of Representatives Public Information Office Room 131, State Capitol 30334 404-656-5082 1-800-282-5800 8-1822-4977 August 5, 2003 For Immediate Release: PeachCare Top Priority with House Lawmakers Governor Urged "Not to Put Children's Healthcare at Risk" Atlanta The House Appropriations Subcommittee on Community Health today urged the Governor to fully fund the PeachCare for Kid's Program in this year's state budget. The healthcare program currently has an enrollment of approximately 190,000 children, which according to the Department of Community Health, is substantially more than the projected enrollment. The Department has indicated that the higher than anticipated enrollment creates a $17 million shortfall in 2004 to fund the program. Overall, in excess of 55,000 children in Georgia may not be covered by this health insurance program in 2004 because of insufficient state funding. Chairman Jay Shaw stated, "This is devastating news to the families of our state," adding, "The Governor has stated that children are his top priority. While we all understand the difficulties of this economy and of the fiscal problems in the state, the alternative is to have tens of thousands of children without medical care in Georgia. This is unacceptable, especially given both the health and the education implications involved." Shaw noted that recent events necessitated the meeting of the Subcommittee. "We began to receive word that children were not being able to obtain the insurance offered by PeachCare as a result of changes in enrollment policy at DCH that were being implemented. After we brought it to his attention, the Governor agreed to review the enrollment changes and look at options. We think he did the right thing in the short term, but he needs to go the extra step and take care of these children," said Shaw. Shaw mentioned that studies have clearly shown a strong relationship between unhealthy children and their learning capabilities. He said, "Children will consistently learn better when they are healthy, and this is beneficial for them, their families and ultimately our economy in Georgia." He also stated that this program has a more efficient funding formula over many other programs involving Federal dollars. "The PeachCare program has a very favorable 75%/25% Federal/state match, and we should take every advantage of using the Federal dollars for our children's medical needs." -more- Shaw also discussed actions in the 2003 session of the General Assembly concerning PeachCare. "We adjusted the premiums to assist with increased enrollment, and the legislature has clearly spoken on this important issue." Shaw stated that the Legislature agreed to an almost 30% increase in premium to help fund the program. "We are not talking about a give-away program. Families participate in PeachCare and pay a portion of the costs through premium payments." House Appropriations Vice Chairman Mickey Channell, who also is a member of the Subcommittee on Community Health noted, "This program is the only place many working Georgia families can turn to for their child's health insurance and I strongly urge Governor Perdue to meet the increased demand. We do not want to put healthcare for children at risk in this state." He added, "In these difficult economic times, families more than ever need affordable health insurance for their children." The Subcommittee adopted language to be forwarded to the Governor, the full Appropriations Committee and the House of Representatives. This language is as follows: "In keeping with the will of the General Assembly, the Community Health Subcommittee of the House Appropriations Committee recommends that PeachCare for Kids at a minimum be supported at its present level of enrollment of 190,000 children in 2004 at the current level of benefits. Created in 1999 by the Georgia Legislature, PeachCare provides comprehensive healthcare to children through the age of 18 whose family income is too much to qualify for Medicaid. This usually covers low-income working families. ##### For further information please contact Matt Caseman in the House Information Office at 404 656-5082.