California is spending more than $100 million to re-process children eligible for its Medicaid (Medi-Cal) program who were de-enrolled due to "paperwork problems," only to be re-enrolled a short period later, a new report from the Los Angeles-based California Endowment finds.

According to the report, How Much Does Churning in Medi-Cal Cost?, 18 percent, or more than 600,000, of California's Medi-Cal-eligible children were de-enrolled at least once in the course of a three-year period, subsequently regaining coverage in a short period of time. The report also found that "churning" — when children are de-enrolled only to be re-enrolled soon after — costs California's healthcare system approximately $180 per child in administrative costs to re-enroll beneficiaries in Medi-Cal and other health plans.

"This study shows definitively that burdensome enrollment processes not only deprive California's kids of badly needed health insurance but also costs the state millions of dollars each year," said endowment president and CEO Robert K. Ross. "The report's findings are particularly timely, given the current debate in Sacramento on how California can best expand and afford providing healthcare coverage for all children."

To download the complete report (12 pages, PDF), visit: http://www.calendow.org/reference/publications/
pdf/access/churning.pdf.