05:02am Friday 13 December 2019

Most Low-Income Children Keep Health Insurance Despite Premium Hike

The research showed that while most families paid a higher premium to keep their children insured, other families were unable to do so. The study appeared in the February issue of Health Affairs, a peer-reviewed health policy journal.

“It isn’t surprising that a substantial portion of participants dis-enrolled but rather that a large percentage found a way to stay with the program,” said the study’s principal author, Michael R. Cousineau, associate professor of research in family medicine and preventive medicine at the Keck School of Medicine of USC. “These results speak to the strong importance these parents place on retaining coverage.”

Cousineau, who also holds an appointment at the USC Sol Price School of Public Policy, and his team examined the county’s Healthy Kids program, a comprehensive, full-risk plan established in 2003 that, at its peak, served more than 45,000 children ages 0 to 18.

Administered by L.A. Care Health Plan, the program has shrunk due to state budget cuts, closing enrollment to new applicants ages 6 to 18 in 2008 and increasing monthly premiums to $15 per child ($45 maximum per family) for the same age group in 2010. Members of the plan had been paying $0 to $6 in premiums per child, depending on income.

The researchers compared two groups of children, those ages 6 to 18 (subject to a premium increase) and those ages 0 to 5 (who were not subject to an increase). The researchers compared average monthly enrollment and retention rates from January 2009 to June 2011. Premiums increased on July 1, 2010.

Membership declined for both age groups over the course of the study but more drastically in the older group subject to premium increases. Retention in the younger group stayed steady at 95 percent before and after the increase, while that in the older group dropped nearly 5 percentage points to 93.8 percent after the premium change.

At the end of the study, 59 percent of the older group’s July 2010 monthly enrollment was still in the program. The researchers expected that 80 percent of the children in the older group still would be enrolled after the increase, taking into consideration factors other than a premium increase. The difference between the observed and expected values was considered the effect of the premium increase.

The researchers did not ask parents why they dis-enrolled their children, nor did they have access to demographic factors such as income, race or health status to help identify who was likely to retain coverage and who was not when faced with increased premiums.

Cousineau said that future research should analyze these and other factors to tailor specific interventions to children most likely to drop out.

“Health reform provides new opportunities for expanding children’s access to health care,” Cousineau said. “However, changes in federal, state and local government policies may force health plans to consider increasing premiums. More research is necessary to determine the optimal level for premiums and to project what low-income families might do if they lose coverage.”

Co-authors included Howard Kahn, CEO of L.A. Care Health Plan, and Kai-Ya Tsai, a statistician at the Keck School.

The study was supported by funds from L.A. Care Health Plan.

Contact      newsinfo@usc.edu

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