“Painless” Administrative Ways for
States with Budget Shortfalls to
Preserve or  Increase Medicaid and
S-CHIP Program Funding

 L: Drop Wasteful, Ineffective Red Tape to
Economically Streamline Eligibility Determination
Administrative Costs for S-CHIP and Medicaid |for
Children and Parents.

Thomas P. McCormack 
05/07/04



 
"Painless " TOC Medicaid Main Page  
"Costs of Enrolling Children in Medicaid and SCHIP" in the January/February, 2004
|issue of Health Affairs examines the process of enrolling children into Medicaid and
SCHIP (State Children's Health Insurance Program) and the recent administrative
hurdles reintroduced to the process in order to save Medicaid dollars (by deterring
people from enrolling). The study found that "it costs approximately $280 to enroll a
child in Medicaid or SCHIP in the New York City area. This amount could be reduced
by approximately 40 percent if documentation requirements were simplified."

Data were collected from three of the 16 managed care organizations enrolling both
Medicaid and SCHP children in the greater New York City area. New York City agencies
were used in the study because of the simplified enrollment process implemented after
September 11, 2001 when New York’s Medicaid computer systems were damaged.
These simplified enrollment processes were compared to complex systems used at other
times and in other states. The time spent on activities was assessed in order to estimate
the costs for major components of the enrollment process.

The authors of the study conclude "administrative costs for enrollment absorb sizable
amounts of funds that could be realized as cost savings or deployed elsewhere."

For a small subscription fee, the full text of  "Costs of Enrolling Children in Medicaid and
SCHIP" in the January/February, 2004  issue of Health Affairs can be read at
http://www.healthaffairs.org/.

Several reports and studies at www.kff.org and www.cbpp.org show that Medicaid and
S-CHIP asset  tests are costly and labor-intensive for states---curtailing enrollment while
still offering states little real savings. Oklahoma alone saved $3.5 million by dropping the
asset test for children; see “Eliminating the Medicaid Asset test for Families at www.kff.org .

APPENDIX: Potential Consultant/Contractors Experienced with and Available for Screening
ADAP Clients for Eligibility for Alternate Coverage and Third Party Liability Improvement
Operations
"Painless " TOC Medicaid Main Page  

“Painless” Administrative Ways For States With Budget Shortfalls to Preserve or
 Increase Medicaid and S-CHIP Program Funding
Section L
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