A shot in the arm for Medicaid- states ask for federal help

As the economic problems hit families, more are in need of Medicaid and SCHIP, programs that "are on the brink of deteriorating," according to Jocelyn Guyer, the deputy executive director of Georgetown University’s Center for Children and Families.

States are asking for two things in particular.

First is reauthorization and expansion of SCHIP, the federal program that gives states money to provide health insurance for children in families that earn make too much to qualify for Medicaid. In 2007, Congress twice passed expansions of the program with significant bonuses for states to cover more kids, only to see both bills vetoed by President Bush. As a result, Congress extended the program, which must be reauthorized before it expires on March 31.

States are also asking for a temporary increase in the federal share of the joint federal-state Medicaid program, which annually costs the states and federal government $330 billion.

Congress was sent a letter from the National Governors Association in October stating that additional funds for Medicaid would permit services to continue.