States call for Medicaid, SCHIP help

U.S. states, facing dwindling resources, are asking the federal government for help to prevent cuts in Medicaid and children's health benefits, analysts say.

Officials from such states as Utah, Nevada and California say that if federal help doesn't arrive soon, poor people who depend on Medicaid and the state children's health insurance program, or SCHIP, will see significant benefit cuts, Stateline.org reported Wednesday.

Medicaid and SCHIP are on the brink of deteriorating, Jocelyn Guyer, the deputy executive director of Georgetown University's Center for Children and Families, told the Washington publication. The question is, are we going to step up and inject money into those programs so they can work during the downturn, or are we going to let them deteriorate?

California officials say they're looking at a potential budget hole of more than $28 billion, and so are considering freezing enrollment in its SCHIP program for the first time in its 10-year history. In Utah, lawmakers have ended some physical therapy, vision and hearing services offered under Medicaid, Stateline.org reported.

U.S. President-elect Barack Obama's proposed healthcare plan calls for expanding both programs, and includes a mandate that all children be covered.

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