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States Are Running Out of Health Dollars

Thursday, February 22, 2007 8:39:53 PM
By SHANNON McCAFFREY

ATLANTA (AP) - Some states are warning that hundreds of thousands of poor children could lose their health insurance if Congress doesn't act soon to come through with more money for the program.

The situation is most severe in Georgia, where officials plan to stop enrolling kids in the state's PeachCare program starting March 11 because of a $131 million shortage.

The problem is that many states have nearly used up their annual federal subsidy for child health care, and it is not even midway through the fiscal year — a situation some are blaming on the formula by which the money is doled out by Washington. Congress has been unwilling so far to deliver more money.


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