Five Million American Children Eligible for Government-Funded Health Insurance

A new study published by Health Affairs reveals that nearly five million children in the United States who qualify for low-cost or free government health insurance, such as Medicaid or Children’s Health Insurance Program, are not enrolled in the programs.

More than 82% of the 25 million children eligible for these taxpayer-funded health care insurance plans participate in them. However, in five states—Florida and four western states—less than 70% of eligible children participate in the programs: Nevada (55.4%), Utah (66.2%), Colorado (68.9%), Montana (69.3%) and Florida (69.8%). The states with the highest participation rates were in the Northeast: Maine (92%), Vermont (94%), and Massachusetts (95%).

The authors of the study were surprised that low-income families used the government programs more than higher income families did: Families earning up to twice the federal poverty rate of $44,100 for a family of four had the lowest rate of participation in the government-subsidized health insurance programs.

I was not surprised, however. It has been my experience consulting with families seeking health insurance that many middle-to-high income families are not aware that they might be eligible. Even when they learn they are eligible, many prefer to buy private insurance to avoid the stigma of receiving government assistance.

In addition, many families prefer to have the entire family covered on a single plan they can afford, rather than splitting coverage between private and public insurance.