July 8, 2008
For Immediate Release

Contacts:
Jan McClure
jan@iacunato-mclane.com
888-356-6406(ext. 88)

Dawn Swett
dawn@iacunato-mclane.com
888-356-6406(ext. 86)

Alameda Alliance for Health Announces Closure of its Healthy Kids Program

Despite Broad Based Efforts to Establish Sustainable Financing and to Expand Children’s Coverage


Alameda, Calif., July 8, 2008 — A lack of permanent funding from public and private sources, and failed health care policy reform is forcing Alameda Alliance for Health to close its Healthy Kids program as of September 30, 2008. The closure will affect 1,000 children in Alameda County. The Alliance is a non-profit, state-licensed health plan committed to making high quality health care services accessible and affordable to lower income residents in Alameda County.

“We’ve worked in partnership with others throughout the community to keep this program going,” said Ingrid Lamirault, chief executive officer of the Alliance. “It is with great disappointment that we announce the closure of this program that has helped provide needed medical care to so many children in our community.”

Supervisor Alice Lai-Bitker, Alameda County District 3 representative and Chair of the Board of Supervisor Health Committee, said: “Closing the Healthy Kids program in Alameda County is an act of last resort. Regrettably, without a statewide solution to establish a permanent source of funding to expand coverage to California’s children, the Alliance can no longer sustain this important program.”

The Alliance began its Healthy Kids program in October 2005 and was one of 10 counties in the state to offer such a program at that time. Today 30 counties offer a Healthy Kids program, which provides comprehensive health care coverage to more than 80,000 children each year.

Healthy Kids programs are at the center of California Children’s Health Initiatives (CHIs), a nationally recognized model for expanding health coverage and creating systems change. Each county that offers Healthy Kids must raise the funds yearly to support the program, typically through a mix of private and public funding. Healthy Kids programs provide low-cost health coverage to children in families with incomes up to 300 percent of the Federal Poverty Level ($63,600 for a family of four) who do not qualify for publicly-funded health insurance programs due to income requirements or residency status.

Funds from First 5 California and First 5 Alameda County support approximately 125 children ages 0-5 in the Alliance’s Healthy Kids program. First 5 was willing to commit to another year of funding, but after children turn 6 years old, an additional funding source would be needed and there weren’t sufficient funds for children ages 6-18, which represent the bulk of the Healthy Kids membership. The California Endowment was willing to commit to one more year of funding for children ages 6-18. However, more than half of the funding for Healthy Kids came from Alameda County Tobacco Settlement Funds. Due to impact of the state budget on the county, Tobacco Settlement Funds had to be redirected to support other county priorities.

A broad coalition of children’s organizations throughout the State led and supported various efforts to develop sustainable financing for coverage expansion for children. In addition, a health care reform proposal (Nuñez, Perata) that included a provision within it to cover all children in households up to 300 percent of the Federal Poverty Level, which had support from Governor Arnold Schwarzenegger, did not pass earlier this year.

The Healthy Kids program is the only Alliance program that is ending. The closure does not affect the coverage of anyone who is enrolled with the Alliance in its Medi-Cal, Medicare Advantage Special Needs Plan (Alliance CompleteCare), the Healthy Families Program or Alliance Group Care.

An intensive effort to reach current Healthy Kids enrollees with information about the closing is underway. “The children we serve are important to us,” said Lamirault. “We are doing all we can to help their parents and caregivers find alternative resources and care.” Parents and guardians of Healthy Kids members will be personally contacted by mail and phone by Alliance staff.

Lamirault noted that children losing their Healthy Kids coverage may be eligible for Kaiser Permanente's Child Health Plan. Additional information is available by calling Kaiser Permanente Member Services at 1-800-464-4000 (“press option 3”). The Alliance also has a Member Services support line to answer additional questions from Healthy Kids families at 510-747-4567.

About the Alliance
Established in 1996, Alameda Alliance for Health is a local, not-for-profit, state-licensed health plan committed to making high quality health care services accessible and affordable to lower income residents in Alameda County. The Alliance is dedicated to improving the health and well-being of its members and currently provides comprehensive health care services to more than 92,000 Alameda County residents through programs that include Medi-Cal, Healthy Families, Alliance Group Care and Alliance CompleteCare.

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