According to the article “Arizona Drops Children’s Health Insurance Program, Medicine Coverage” by Thomas Kristoffersen on insurancerate.com, Arizona became the first state to get rid of their Children’s Health Insurance Program.  The cutting of the program was a result of the strict budget set forth by Gov. Jan Brewer and it will take away coverage for about 47,000 low-income children. Arizona health insurance may never be the same again.

The strict Arizona budget is an example of what is happening across the nation as state’s try desperately to save money and stay above water.  Arizona also plans on cutting back on the Medicaid program for adults who do not have children which will take away coverage from about 310,000 people.

The cutbacks will cause Arizona to give up millions from the government which matches aid as well as possibly forgoing even more money with the passage of the new health care bill.  Even health insurance companies such as Blue Cross Blue Shield of Arizona will be experiencing big changes.  The Governor warned the state that even more cuts will need to be made if voters do not approve a referendum on the May ballot that will increase the sales tax in Arizona by one penny for the next 3 years.  Seems like such a small increase, but if residents don’t understand the implications they may be quick to vote against any sales tax increase.  Hopefully the economy will turn around soon and relieve some of these unfortunate situations.