New law allows more families to qualify for subsidized children’s health insurance

More working-class families in Florida will have access to a subsidized children’s health insurance policy under a new Florida law.

Gov. Ron DeSantis on Monday signed HB 121, a top priority of House Speaker Paul Renner, into law. The new law allows Florida families to earn up to 300% of the federal poverty level, or $83,250 annually for a family of four, and continue to qualify for Florida KidCare. Previously, the program only was available to families earning 200% of the FPL, or $55,500 annually for a family of four.

Florida KidCare includes several different subsidized programs, including the state’s Healthy Kids program, which requires a small monthly premium and generally covers children from ages 5 to 18.

HB 121 takes effect upon becoming law but children cannot enroll in the program until Jan. 1, 2024. That gives the Florida Healthy Kids (FHK) Board of Directors time to establish premiums and copayments for newly eligible enrollees.

“This law is a huge win for Florida’s working families,” FHK board chair and physician Stephanie Haridopolos, told Florida Politics. “It helps and honors the families that make Florida the economic engine of our nation.”

Unlike traditional Medicaid, which is free, Florida KidCare enrollees are required to pay a small monthly premium for the coverage.

HB 121 requires the FHK board to establish the fees, premiums, copayments, deductibles and co-insurance requirements newly eligible enrollees will pay. Using the poverty level as a guide, the board is required to establish between three and six tiers.

Florida KidCare is the state’s version of the federal children’s health insurance program (CHIP), a Medicaid expansion program for children aged 5-18 living in families who earn too much to qualify for traditional Medicaid. Congress passed the law in 1997 and agreed to pay states roughly 15 percentage points more than the traditional Medicaid match rate. The Florida Legislature agreed to pass the optional Medicaid expansion a year later and the federal government pays about 69 cents of every dollar spent on the program.

The first expansion of Kids Care since it was established comes as Florida unwinds its Medicaid program from the COVID-19 public health emergency and disenrolls ineligible people from the safety net program that provides health care coverage to the poor, elderly and disabled.

In addition to passing HB 121, the Legislature agreed to put $20.6 million in the General Appropriations Act (GAA) to fund the expansion. Renner also successfully pushed for $76.1 million in pediatric fee increases so more physicians would agree to care for children in the Medicaid and Florida KidCare programs.

DeSantis has not yet received the GAA, often referred to as the budget.