COD E R E D

As mentioned in the table above, funding for the Medically Needy spend-down program forparents with dependent children was discontinued in House Bill 2292. (It is inactive with theoption of continuing it if sufficient funds are available.) The non-spend-down portion of theMedically Needy program is still in place (people entitled to Medicaid due to low income) as wellas spend-down for pregnant women and children. The spend-down part of the program allowstemporary Medicaid coverage for pregnant women and children (and before 2003 also includednon-aged, non-disabled parents or caregivers with dependent children) with high medical billswho make too much to qualify for Medicaid but whose earnings after medical bills aresubtracted would be reduced to qualifying levels. The qualifying level for a family of three iscurrently $275 in income per month or less, as shown in Figure 1, as well as $2000 or less inassets. 120A bill has been introduced in the 79th Texas Legislature (2005) to restore the Medically Needyprogram to pre-2003 levels. The fiscal note by the Texas Legislative Budget Board states thefollowing regarding the impact of restoring this program: “HHSC projects that reestablishing theMedically Needy program would cost $241.3 million in All Funds ($94.9 million GR) in 2006 and$276.4 million in All Funds ($109.2 million GR) in 2007, with costs increasing in subsequentyears. HHSC projects that the increase in average monthly recipient months (clients) would be10,118 in 2006, 10,918 in 2007, 11,796 in 2008, 12,745 in 2009, and 13,769 in 2010.” 121Many cuts were also made in the SCHIP program by the 78th Legislature in order to reduce thestate budget. These changes as well as some of the cuts that were subsequently reversed arelisted in the following table. These changes resulted in a dramatic drop in SCHIP enrollees inTexas after they were implemented, from 507,259 children enrolled as of September 2003 to358,230 enrolled as of June 2004. 122 The number of enrollees had grown after the 77thLegislature in 2001 passed changes to simplify the program and align it closer with Medicaidenrollment, and make it easier to enroll and renew. 123B-27