N.C. Could Face $43 Million Shortfall in Insurance Plan

North Carolina might be looking at a $43 million shortfall with a children’s health insurance program next fall if Congress doesn’t resolve a stalemate.

Congress and President Bush have been at odds over expanding insurance coverage for low-income children. Each state receives money to provide coverage for children in families who earn too much to qualify for Medicaid. Bush vetoed two bills this fall. A federal stopgap spending measure is set to expire Friday.

The state Division of Medical Assistance told General Assembly members Tuesday that without changes the state may have to make up the shortfall for its N.C. HealthChoice program with additional state funds. Lawmakers also would have to consider whether to reduce the number of covered children, now at 117,000.