Soon after the introduction of the premium, the Kentucky Cabinet for Health and Family Services requested that we survey families that lost KCHIP coverage due to premium nonpayment to ascertain why these families chose not to pay the new CHIP premium, what their sociodemographic and health characteristics were, and whether they obtained an alternative source of health coverage.
Table 2 presents demographic information from the KCHIP eligibility records for children in the responding families, all children from the universe of families surveyed, and the universe of KCHIP enrollees for the month of January 2004.
A comparison of children in the universe of families surveyed to children enrolled in KCHIP in January 2004 provides some insight into how children who lost coverage compare to the typical enrollee.
We are interested in modeling the family decision to end a child's spell of KCHIP 3 coverage and how differences in premium levels and health status impact that decision.
To empirically analyze this relationship, the duration of the KCHIP 3 enrollment spells described earlier is estimated using a Cox proportional hazard model with time-varying covariates to model the yearly recertification process and introduction of the premium.
Instead, we use the average monthly exit probability in the KCHIP 3 sample, 3.
We begin with a brief examination of the impact of the new KCHIP 3 premium on the take-up of KCHIP coverage.
The table suggests that there was a larger reduction in the number of new KCHIP 3 enrollees (19%) as compared to the reduction in the number of new KCHIP 2 enrollees (11%).
01) after the implementation of the new premium and that children in Kentucky may have also experienced a reduction in their re-enrollment rate in KCHIP III of 5 percent (p < .
However, there was a significant increase in the average monthly caseload for KCHIP II of 638 children or 2 percent (p = .
In Kentucky, under Scenario 2, spending would fall by an additional $885,740 due to decreased KCHIP III enrollment, generating a total savings of $1,300,939.
3% percent of premium- paying caseload Kentucky KCHIP III Medicaid KCHIP II ([dagger]) Average monthly 2,126 634 -3,262 premium effect (p=.