Good bye to "Healthy Families" in California as we know it?  Let's hope not...the negotiations still continue...the extension runs through the middle of November for an agreement or deal to be made...other states face similar issues as well..Bush says he is ready to compromise...stay tuned...BD

The impasse in Washington has repercussions for California and other states that administer the State Children's Health Insurance Program, as the federal-state partnership is called. It was originally designed to cover children in families who earned too much to qualify for Medicaid but too little to afford private insurance. Funding for the program was set to expire Sept. 30, but Congress and Bush extended it through mid-November to try to resolve their differences.

California's program, known as Healthy Families, insures about 800,000 children, more than in any other state. Its director, Lesley Cummings, said she was drafting contingency plans to put children on waiting lists or even to drop some from coverage if federal funding is jeopardized.

If Washington policymakers remain deadlocked and continue to extend the current funding levels through next year, California would face a shortfall and would not be able to cover all the children it currently serves. Because of rising healthcare costs and cutbacks in employer coverage, several states find themselves in a similar predicament.

House fails to override child health veto - Los Angeles Times

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